Three laws govern all disruption and profitable innovation. They are like laws of nature; they define the environment in which innovation and competition take place.
The First Law of Disruption describes a core element of life in the Age of Hyper-Innovation:
The Second Law of Disruption defines the mechanism through which innovation is translated into market share:
The Third Law of Disruption establishes the foundation for Quantitative Product-Market Fit. It is a bit of a mouthful:
The key to profitable innovation is understanding these laws and their implications. The implications include:
- There are only 3 modes of Product-Market Fit change
- There are only 3 types of disruptive attack
- There are only 5 ways that companies can cause changes in market share to occur
These are all part of the Innovator’s Toolkit. But first, let’s look closely at what Product-Market Fit really is.