Most new businesses have old business models

Terms like "disruptive" and "tech business" just distract from the essential similarity between many companies.

Slate's Matt Yglesias decries the over-use of the word "disruptive":

This is a shame, because while all innovation is great, the idea of disruptive innovation as a distinctive kind of innovation has real value. And while disruptive innovation is generally a good thing, nothing inherent to the idea implies it’s the only good thing or the best thing. Entrepreneurs should not be ashamed to admit that their ideas aren’t particularly disruptive.

Disruptive innovation is important because of what it's not: "sustaining innovation". The two terms come from Clayton Christensen's 1997 book The Innovator’s Dilemma. The latter describes the innovation of building a better mousetrap, so to speak: a company looks at their products, looks at their clients, and tries to improve their products to better fit their clients needs. Christensen uses the example of IBM building mainframes in the 1960s and 1970s, but it's just as easy to turn to Nintendo progressing from the Game Boy to 3DS, or Kodak making ever better point-and-shoot cameras.

In each case, the company focused on winning an ever greater share of the market by being the best at what they do, without noticing that there's another way they could lose out: from companies doing a much worse job. So IBM, focusing all its attention on the mainframe market, failed to account for the rise of personal computers, which were far worse at the sort of jobs that businesses used mainframes for, but cheap enough that individuals could buy them; Nintendo didn't realise that the market for mobile games would be content playing simpler, cheaper games on their smartphones, rather than paying £40 for a fully-fledged port of Ocarina of Time; and Kodak didn't account for the desire of people to take truly awful quality pictures on their cameraphones.

That's disruption: competing, not by making something better than the incumbent, but by making something which, despite being worse, is so much more accessible that it eats market share from the bottom-end up.

(Incidentally, are you seeing the pattern here? Smartphones have been astonishingly disruptive in a nearly every area they've touched. As well as point-and-shoot photography and handheld gaming, they can probably be blamed for the demise of MP3 players, PDAs, most GPS navigation devices, and, if you've ever sat on the back of a bus on the school run, 1980's style boomboxes. In nearly every case – and certainly the last – they're considerably worse than a purpose-build device at doing the same thing, but you can't beat the price, nor the portability.)

In a way, it's a more specific example of the point repeatedly made: there's no such thing as a tech company. Here's Quartz's David Yanofsky on that topic:

Perhaps a tech company employs software engineers to improve product offerings and user experiences. AT&T has employed developers for years, programming the infrastructure of telecommunications to route phone calls around the world. It’s not called a tech company though. Skype is.

Perhaps a tech company uses technology to change the way we behave. Amazon.com’s business of selling countless items at any hour to anyone, then shipping them anywhere, surely fits into this category. Yet, in practice, it is no different than a Sears Roebuck mail-order catalog.

Hiving businesses off into their own little sector because they use the internet might have made sense 20 years ago, but not anymore. Amazon and Waterstones both have retail stores and online sales; Google and the Guardian both have business models focused around selling ads to firms trying to market to people using their websites.

As with "tech business" before it, "disruption" nowadays seems to just mean "doing things better than the old way because computers are involved". Which is important, but obscures the fact that disruption's a useful term which has a meaning of its own. And it also hides the fact that there's a lot more similarity between seemingly disparate fields than there seems to be at first glance.

A trophy on stage at TechCrunch Disrupt. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.