To be a disruptive company requires a lot of effort, a clear focus on executing a business plan that works within the marketplace’s principles to disruptive change.

To be a disrupted company doesn’t require any effort at all. Just the decision to keep doing what has been done in the past – especially if it’s been profitable for a long time.

To understand the implications of when the core product of an industry changes to a digital product there are several books that are essential to read, study, re-read.

1. Bold: How to Go Big, Create Wealth and Impact the World – by Peter H. Diamandis and Steven Kotler that was published in 2015. The key takeaway is “the 6 D’s” – the six stages of growth that always happens in the same sequence. It’s not just growth, it’s exponential growth. 1,2,4,16,32; the LED light source started at 25 LpW in 2005. By 2020 it’s pushing 150-200 in general lighting luminaires. Compared to fluorescent that took 75 years to go from 25-100 LpW. It’s taking cost out of luminaires in record amounts and in record time. It’s reducing the size to micro-LED’s.
2. Crossing the Chasm – Geoffrey Moore published first in 1991. It still applies today. Another principle that applies to who buys what, who buys when, and why. Regardless of industry the pattern is the same. The main takeaway is that the first 15% of businesses buy based on features and benefits. They always buy new technology first. They are always innovators and early adopters. The remainder do not buy based on features and benefits. Ever. They buy based on financial metrics first. Always.

The lighting industry has experienced linear growth for decades. 40wT12, 34wT12, 32wT8, 28wT8. Incandescent, halogen, CFL’s.

Since 2010 it has experienced exponential growth. 25 LpW to 150+LpW. $40 A-lamps to $1. Last week I saw 2×2 LED troffers for $12 from a Tier 1 US OEM in big boxes. Product generations are now in months versus years. The speed has created what we experience in consumer electronics – the “good enough” factor. CRI 80, 5-year warranty, moderate glare, 50% less cost than 5 years ago, is all good enough.

Which results in faster turns to the next generation and larger “Overstock” sales to make room.

So, what to do?

• Find a niche that is large enough to be profitable with enough volume, but not too large to attract the racers-to-the-bottom crowd?
• Merge and acquire to maintain margins from scaling up?
• Become a specialty shop to cater to just the innovators and early adopters?

Whatever you decide to do, you first must understand the rules of the new game.

Playing by the old rules will end, sooner or later, in being disrupted.

While I was Director of Canlyte’s Lighting Concept Centre (Again, a Canadian spelling, please forgive me) a few years previously. I remember delivering a presentation to a group of interior designers on what was a newer light source at the time, LED. I was explaining lumens and source efficacy and the importance of delivering the lumens where they are required.

I will never forget the moment, the person’s face, where they were sitting, or the number of nodding heads that supported this award-winning designer’s belittling comment. “We all know what 50 Watts of light is!”

“Ok….um….no!”

The point being it was a simpler time in 2014, 1980, 1962, 1935, 2019. Light has never been more complicated. Light has never been more important. Therefore, knowledge about light has never been more crucial. (#DavidWarfel, please notice I am saying “light” as opposed to “lighting”.)

That designer knew their stuff to do her job. She had won awards for her interior designs.

For generations, the playing field was set, level, and so slow to change.

LEDs are king

Then, the goalposts were moved.

Then, the science to generate energy in the visible portion of the electromagnetic spectrum (light) was changed forever by the development of white light LEDs.

Then, manufacturers who had been in the business for less than two years were offering “Lifetime” or “100,000 hour” warrantees. Warrantees which would never be fulfilled.

Then, the colour qualities of LEDs improved. We even had more colour temperature options. But these colour options had varying ability to deliver light per the same energy use. Why does the 4000K choice provide more lumens than the 3000K?

Then, the cost of LEDs went down.

Then, manufacturers found out that they can generate more light by driving the LED drivers harder. This would be at the cost of life, but who told the consumer?

Then, on the human and nature physiological front, science was discovering a new photoreceptor in the eye and beginning to understand light’s effect on human and animal health.

Then, scientific studies showed that different plant species responded more favourably to different spectral power distribution intensities.

Light, both natural and human-made, was even more critical to global health than we ever could have imagined. It is easy to take for granted something so ubiquitous.

Lighting education is needed

Now, LEDs are the apex source globally.

Now, we have so many more options of colour temperature or even specific spectral mix within our choices.

Now, we are beginning to know what we know and do not know about light and its effect on health.

Now, we are beginning to know what we know and do not know about light and its effect on plants and animals.

Now, we have a multitude of choices when it comes to lamp life and lamp efficacy, and we know what the trade-offs are.

Now, we have controls that will not only deliver the required light only when we need it, at the levels we need and want it, but can do it to a specific desirable recipe of wavelengths along the visible portion of the electro-magnetic spectrum.

Now, we have a deeper understanding of light, and lighting and how complex it has become.

Now, it has never been more critical for light and lighting education.

We do not know what 50 Watts of light is.

“Well, they picked it like a chicken bone, and I think I’m half insane, Ma. Look what they’ve done to my song.” – Melanie Safka