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THE CYCLE OF CREATION AND DISRUPTION

- Vatsal Kothari

As you read this article, millions of worth of in the traditional telephones being thrown

dollars are being shopped by consumers by out of the market. In addition, it also

just clicking on an e-commerce website (e.g. adversely impacted unskilled labour who

Amazon, Flipkart). Have you ever thought were not familiar with modern technology

of the impact this would have on the as a result of which they were thrown out of

“kirana” stores – the traditional mom and their jobs. However, at the same time, it led

pop stores? to the creation of many new segments of

Business, the art of business – applications like WhatsApp,
buying and selling Instagram and so on. This resulted in new
goods and services job opportunities, economic growth, more
has much more than convenient lifestyle, technological
what it seems at inventions and last but not the least, more

face value. The core

requirement of doing business is an

innovative idea. Depending on the

uniqueness of the idea, the business is either

successful or unsuccessful. However, all the

businesses have two implications for the

world – creation and disruption. All

businesses result from creative ideas by

intelligent entrepreneurs. However, since

most of the businesses are profit motivated,

they fail to keep in mind its impact on the

surrounding environment, the people and

other businesses. The negative impact on the

surroundings is known as disruption.

Disruption can be massive or minor, creation of wealth. Hence, every creation
depending on the effect and size of the leads to disruption which in turn leads to
impact. If the impact is restricted to a creation, i.e., positive impact on the
particular region, it is usually minor environment and provision of new business
depending on the seriousness and gravity of opportunities. This forms the business cycle
the impact and the size of the region. It can of creation, disruption and creation.

be massive if it has a negative impact on the This cycle holds true for any business idea.
world as a whole or a majority part of the Take another example, the invention of
world. For example, the use of machinery electric cars by Elon Musk. This is a very
for agriculture in California. This leads to a innovative idea as it helps preserve the
minor disruption as its impact is only environment due to its eco-friendly nature
restricted to California. The impact, in this and at the same time gives the best luxury
case, would be the reduction in the number and comfort. However, it leads to disruption
of farmers in California due to
enhancements in technology. A classic
example of massive disruption is the
invention of mobile phones, which resulted