Different Types of Innovation in Procurement

A large manufacturing company had been using the same procurement software for nearly a decade. It worked, but it was far from perfect. Buyers often found themselves manually checking supplier data, and mistakes, though minor, happened more often than they should have.

Rather than replacing the system entirely (a costly and risky move), the procurement team proposed a conservative approach: integrate automated data validation tools and introduce real-time analytics dashboards. The goal wasn’t to reinvent the system, but to make it smarter.

Over the next few months, these small enhancements started making a big difference. Data accuracy improved, errors dropped, and the team could now spot supplier issues before they escalated. Procurement cycles became faster, reports became clearer, and user frustration significantly declined.

What’s important here is that nothing dramatic changed. The core system remained, but the way it worked evolved just enough to drive better outcomes. This is conservative innovation in action, low risk, high practicality, and meaningful results.

Back in the early 2000s, Netflix was just a DVD rental service shipping discs to customers. Blockbuster dominated the market back then, with its vast network of stores and devoted following. But Netflix saw an opportunity and took a risk. They started streaming movies online.

At first, it didn’t seem like a big deal. The selection was small, and most people still stuck with physical DVDs. But slowly, viewers realized how much easier it was to watch instantly. No more late fees. No more trips to the store. Just click and watch.

That small shift changed everything. Today, Netflix isn’t just a streaming service. It’s a global entertainment giant producing its own shows and tailoring recommendations to every user. Meanwhile, Blockbuster became a relic of the past. Netflix didn’t just change movie rentals. It transformed how we all consume entertainment.

This is what disruptive innovation looks like. It starts quietly, almost unnoticed, but eventually reshapes entire industries. Companies that don’t adapt get left behind.

Do you still remember when the pandemic hit? Zoom went from office tool to everyday essential overnight. People relied on it for work calls, online classes, and even virtual happy hours. It did the job, but users kept wishing for more.

Then Zoom rolled out breakout rooms.

What seemed like a minor upgrade actually revolutionized virtual collaboration. Suddenly, large meetings could split into smaller conversations just like in person. Teachers could divide classes into project groups. Managers could host effective brainstorming sessions. Trainers could run interactive workshops.

This wasn’t some complete platform redesign. Just one smart feature addition. But it fundamentally changed how people used Zoom, expanding its possibilities far beyond simple video calls into meaningful digital interaction.

Before Airbnb, travelers had two main lodging options: hotels or hostels. Both came with limitations, standardized rooms, fixed check-in times, and often higher costs in popular cities.

Then came Airbnb, offering something no one expected: the ability to rent a stranger’s spare bedroom or entire home. At first, people were skeptical. Could it be safe? Could it be trusted?

But the model took off. Suddenly, travelers had access to unique, personalized, and often more affordable stays in cities around the world. Homeowners could turn unused space into income. The hospitality industry was flipped on its head.

Airbnb didn’t improve on the hotel model, it created an entirely new one. It wasn’t just disruptive; it was radical. It required a shift in mindset, in trust, in travel behavior.

Today, Airbnb is a global platform and a cultural shift in how people travel. Its radical innovation paved the way for new thinking not just in hospitality, but in trust-based, peer-to-peer economies.