Monday, September 23, 2013

#7 - Disrupting industries



The often quoted Creative Destruction essay by Joseph Schumpeter illustrates "...the same process of industrial mutation–if I may use that biological term–that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism." the notion of cycles of disruption which bring forth shifts in the way business is conducted.  Being able to spot a disruption in progress can help companies adapt to the changes faster and better to increase their chances of surviving and thriving in the new economies that emerge.

This idea challenge was for students to check out historical or present day trends that are predicted to disrupt industries in the future.  Accordingly, it can be seen that social enterprises those with blended missions are to me disruptive.  They are forcing government to adapt to their new models of doing business and social good intertwined.  As a case in point, Greyston Bakery started doing business in 1982 with their own focus on social employment, partnership and profit and the legal form of B corporation  (Benefit Corporation) that they have come to symbolize was only publicly recognized in New York State in 2012. Therefore it took 20 years for them to get formally recognized for their true mission, activities and achievements in the eyes of the law.

Greyston Bakery has given employment opportunities to many groups that normally get excluded because of their lack of work experience such as men and women who were previously homeless, in jail, and otherwise left out.  They provide shelter, training and medical assistance to their employees to give the an opportunity to change their circumstances.  The company has also been in partnership with Ben&Jerry's ice cream brand by preparing baked goods for their range of products.  With the profit the bakery continues to fuel new and improved outreach programs.  This is disruptive as it makes policy makers and those out for profit only rethink their business models for a sustainable future.

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