Application innovation
This type of innovation is in a market that already has an incumbent that solves the main job-to-do for people. The same type of technology is then used for different applications.
An example would be Apple and the PC. Apple started to have break-away success when they applied personal computer technology to desktop publishing. As you can tell from this example the company that does application innovation has a smaller part of the market, but can become a leader in this area. The foothold in the market can then be used attack the larger incumbent.
Fast-follow in a large and not yet consolidated market
Google and Facebook weren’t the first search engine or social network. Far from it. Yet they now hold imposing leads in their respective markets.
Both of these companies are protected from competition. Google has more data than any other search engine and Facebook already has your friends and photos.
However, early on in a markets life consumer preferences aren’t set. This is why Facebook was able to beat-out Myspace, despite Myspace having network effects on its side.
Predict what’s going to be ubiquitous and build for that
Gartner produce a Hype Cycle every year; showing adoption for certain technologies over time. The idea being, widely adopted technologies can often be seen in early forms before hitting mass-market.
Creating a product for a technology in a current early stage will result in your product being ready by the time there’s demand.
But remember, as the saying goes, being too early to market is as bad as being too late.
Opportunities within a domain you are an expert
If you have experience in a market, you know what people want, and may already know how to deliver. As technology changes, it creates white space and opportunity for disruption.
Already being an expert in the domain gives you an edge over anyone else trying to take advantage of the opportunity.
The internet is going to disrupt most industries; and if you’re an expert in one that hasn’t already been disrupted it’s a perfect opportunity. Look at how other industries have been disrupted, and with what technology, and apply it to your own.
Serendipity
A ton of revolutionary ideas are discovered by mistake. Like Alexander Fleming with penicillin. Or Zuck with Facebook — it was originally intended to be a dating site.
Keep an eye out for these oddities. They may just be world changing!
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