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Jun
30
2009

  • Five years ago, most newspaper editors would have laughed at the idea that blogs might one day offer serious competition. The minicomputer companies laughed at the early personal computers. New technologies often don’t look very good in their early stages, and that means a straightup comparison of new to old is little help in recognizing impending dispruption. That’s a problem, though, because the best time to recognize disruption is in its early stages.
  • An early sign of impending disruption is when there’s a sudden flourishing of startup organizations serving an overlapping customer need (say, news), but whose organizational architecture is radically different to the conventional approach. That means many people outside the old industry (and thus not suffering from the blinders of an immune response) are willing to bet large sums of their own money on a new way of doing things. That’s exactly what we saw in the period 2000-2005, with organizations like Slashdot, Digg, Fark, Reddit, Talking Points Memo, and many others. Most such startups die. That’s okay: it’s how the new industry learns what organizational architectures work, and what don’t. But if even a few of the startups do okay, then the old players are in trouble, because the startups have far more room for improvement.
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