Why are SMSFs a disruptive innovation?
With some strategic leveraging, the SMSF sector is well placed to up its market share within the superannuation industry.
There is a lot of talk about disruption at the moment. Start-ups like Airbnb, Netflix and Uber emerge and are labelled disruptive, then debate rages about whether they are truly disruptive innovations, in line with the original Clay Christensen definition, or part of a phenomenon described as digital disruption.
Disruptive innovation is described by Clay Christensen as:
“Generally, disruptive innovations were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream.”
One form of disruptive innovation is the "new-market disruption", which targets customers who have needs that were previously unserved by existing incumbents. Once a foothold is established, the disruptive innovation relentlessly moves upmarket displacing established players....
Peter Williams, cheif edge officer, Deloitte Centre for the Edge
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