How to Use Innovation Opportunities to Survive Disruption

All industries face it at some point: disruption. When you don't innovate constantly, you risk the chance of being blindsided by your competition. At Northstar's Destination Southwest at The George and the Cavalry Court Hotel in College Station, Texas, Julie Austin, CEO of Creative Innovation Group, shared tactics for surviving disruption and identifying a competitive advantage. 

Disruption isn't new – it's the norm

It might feel like business travel is undergoing a revolution, but the industry is no stranger to change. 

"We need disruption, we need change and innovation," Austin said. "I know it doesn't feel good when it's your business that's being disrupted, but that's why I want to show you how to use innovation and create your competitive advantage so you can stay ahead."

Austin went back in time to the days of the Silk Road, a 4,000-mile network of trade routes that once stretched from China to the Mediterranean, the original form of business travel for moving goods and people. While that system worked for centuries, eventually ocean freight was invented, creating a faster, cheaper and safer shipping method than camel caravan. 

"Tourism and travel has always been disrupted and changed," she pointed out. "When the internet came along, it didn't get rid of travel agents, it created Travelocity and TripAdvisor and Airbnb."

Use excess capacity

Airbnb is a classic example of using excess capacity: The founders had an extra bedroom and they decided to make money off of it. 

"Every single person in this room could have come up with that idea," Austin said. "It's really, really simple, and a lot of those simple ideas make money."

While it might not necessarily be a spare room, if there is an asset or commodity that is being underused, think of a way not only to use it, but to profit from it. 

Become more exclusive

Exclusivity could sound counterintuitive in terms of a business model, but it actually drives interest. 

Austin referenced Disney's Club 33, an expensive — thus exclusive — membership. Perks include riding new attractions before they're open to the public, a VIP park tour, meals at a members-only restaurant and, of course, bragging rights. Then there's the Supreme clothing brand: When a new store opens, the company doesn't promote it to the masses, yet there will be a line out the door of people who might not even get in. To their audience, scarcity creates value. 

"I don't know if you want to make your whole business like that," she said. "[But] how can you turn little pieces of your business into an exclusive kind of thing?

Another method to become more exclusive is to make events invite-only or limit capacity, as the TED Conferences do. This organization also found success because it challenged the status quo of what a traditional keynote should be, asking, "What if there were no podiums?," "What if the speeches were short?" 

"I want you to ask that question for everything you do, every event you plan, everything: 'What if?'" Austin said. 

Some businesses — such as speakeasies — succeeded because they possessed an element of mystery. Travel providers have tapped into this strategy by creating mystery cruises, where ports of call aren't revealed until 24 hours before arrival. 

In 2019, Club Ichi hosted a Secret Family Reunion, where travelers signed up for a business trip but weren't told where they were going. The only details provided were the dates and a packing list. At a reveal party right before departure, organizers announced that they would be visiting Tuscany, Italy. After a wildly successful launch, Club Ichi is holding another one this year on May 1-8. On the Secret Family Reunion Instagram page, registrants are told to meet at LAX with checked bags only (not even a carry-on), and that's it. 

In an industry where every last detail is meticulously planned, leave some aspects to the imagination.

"What can we hide, reveal slowly or gamify to spark curiosity?" she asked. "Hidden locations, secret names, unmarked doors, puzzle invitations, blindfold experiences, surprise entertainment and secret guest speakers are a [small] list of things you can do."

Become more niche

Finding your audience and honing in on their interests also can increase chances of survival for a business. 

Embracing its rural Appalachian culture, Marlinton, W.V., hosts an annual Roadkill Cook-Off, inviting "chefs" to create dishes from animals that could be the victim of a hit-and-run. Results include venison stew, squirrel chili and teriyaki-marinated bear. It doesn't appeal to everyone, and that's actually a good thing. 

On the fitness front, the Last Man Standing Ultramarathon challenges participants to run for essentially as long as they can. The length depends solely on the physical and mental stamina of the competitors. Here's how it works: Runners must complete a 4.2-mile loop in one hour. If they finish in under that time, they can rest and refuel but must be at the starting line for the next lap, which starts every hour on the hour. The person who completes the most loops in that time-frame wins. Most people don't even want to run a traditional marathon, but one that doesn't have a defined finish line? Even less. But those who do are loyal participants. 

"Create a niche landing page on your website; develop a niche signature event; create niche itineraries using history, food or mystery; partner with niche influencers; brand a niche 'trail' with things like distilleries, filming locations or ghost stories," Austin suggested.

Forced creativity

Routine is the enemy of innovation. By a show of hands, Austin noted how most people in the room drive the same way to work, eat the same thing for breakfast or watch the same TV shows every day.

"It's a shortcut in the brain," she said. "We wake up, we do the same thing over and over and over again, and it literally creates a rut in the brain."

To break out of that rut, study different industries, speak to your taxi driver, or spend a day in the library or a museum.

"Just put stuff into your brain," she said. "The more stuff — random stuff — you have, the more your subconscious is going to be working in the background for you."