About five years ago, venture capitalist Mark Suster posted a blog titled
The Amazing Power of Deflationary Economics for Startups, which applied Clayton Christensen's disruptive innovation concepts to the success stories of the internet. To summarize (see chart above): initially lower quality products/services that do one or two things really well at ridiculously lower prices for underserved customers displace overpriced, full-featured competitors that try to please demanding incumbent customers. Hence: Amazon, Craigslist, Skype, etc.
Healthcare innovation is just beginning to catch up, as addressed in Dave Chase's recent Forbes article
The Amazing Power of Deflationary Economics for Health Ventures. This perspective is aligned with a key message in our MIN-Corps Lean Launchpad workshops: adoption is much more likely if your product/service is a WHOLE lot better at one or two things that REALLY matter to target customers, in a way that drastically reduces their costs vs. current alternatives.
