Monday, June 06, 2022

Why Disruption Often Rides on Upstart Startups

Tech disruption is generally driven by startups. Here's why. 

Why is it that large. established companies often lose out to upstarts (typically, tech-driven startups) with meagre resources? Well in my view,  Large organizations don’t get tech mainly for the following reasons: 

1. They’re so big and complex that they focus their considerable energies on large “enterprise- wide programs”, and often just don’t care enough about making small improvements to customer experiences. 

2. Even when they care enough, middle-aged corporate execs don’t understand tech well enough to use it sensibly. 

3. Even when they understand the right tech to be used, these layered and often bloated organizations usually can’t execute nimbly enough. 

Now upstart startups thrive exactly under those circumstances. Their very raison d’etre is (1) above, they’re run by people fully in touch with tech, and they’re nimble from the ground up. 

This is why large organizations (banks, manufacturers, old media,…) are ever in grave danger of being disrupted by brash upstarts. And that process will only accelerate. 


Of course, it may be argued that we can't say much about disruption without getting into the innards of how startups will actually create that disruptive technology, product or business model. But it's pointless to try to enumerate these possibilities  exhaustively - some startup somewhere has to find the right model the hard way, by taking risk and working hard. That's precisely where the startup ecosystem kicks in - there's enough talent and funds to cobble together a nearly endless stream of startups, so someone somewhere will hit the nail on the head !