Creative destruction

What is Creative destruction?

Creative destruction is the process by which new ideas, technologies, business models and ways of working replace those that have become obsolete. Coined by the economist Joseph Schumpeter, the term describes how innovation drives economic progress by creating new sources of value while disrupting or displacing existing ones.

Creative destruction is a continual feature of competitive markets. Organisations that fail to adapt to changing technologies, customer expectations or competitive pressures risk being displaced by those that offer more effective or efficient alternatives.

Intelligent organisations recognise that, in an increasingly disruptive world, creative destruction is not merely an economic force but a pathway to adaptiveness. They are willing to challenge and reinvent their own products, services, processes and business models before circumstances force them to do so. It reflects an understanding that today's success is no guarantee of tomorrow's relevance.

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