Denting the Outside: How Real Innovation Happens Beyond the Core
When we think about disruption, we often imagine tearing things down, changing everything at once to stay ahead. But the truth is, real innovation doesn’t always come from breaking what already works. It comes from denting the outside experimenting just beyond your core to create something new that could one day become the heart of your business.
Why “Denting the Outside” Works
Most organizations fail at transformation because they attack their core head-on. They try to overhaul systems, structures, and cultures that have been built for years and the organization’s “immune system” fights back. Resistance kicks in. Bureaucracy wins. Innovation stalls.
But what if you didn’t have to fight the system at all?
That’s the idea behind denting the outside. Instead of disrupting from the inside, you build around the core launching small, adjacent experiments. These side projects can evolve, mature, and eventually become the new engine of your business. This is how companies like Disney, Netflix, and Adobe successfully reinvented themselves.
Lessons from the Masters of Self-Disruption
When the pandemic hit, Disney could have doubled down on its traditional strengths: parks and media networks. Instead, it accelerated its shift to Disney+, turning a side initiative into the company’s new core.
Netflix did the same years earlier moving from DVD rentals to streaming, then into content creation. Each move started outside the core, and each time, the “outside” became the new core.
These companies didn’t wait for disruption to happen to them. They created it strategically, step by step.
Formula 1: Innovation Under Pressure
Perhaps one of the best modern examples of this mindset came from Formula 1 during the pandemic. With live racing halted, they didn’t just pause, they pivoted. Within weeks, Formula 1 launched a virtual esports Grand Prix, attracting more than 30 million viewers.
At the same time, they used their engineering expertise to design a breathing aid for COVID-19 patients, showcasing how core skills can be redeployed outside traditional boundaries. Both moves were born from experimentation, autonomy, and speed.
Formula 1 didn’t change its core; it extended it. That’s the essence of denting the outside.
The Principles of Agile Innovation
So what made this approach successful? Across every example from Disney to Formula 1 a few principles stand out:
Autonomy: Small, empowered teams move faster than large, layered organizations.
Speed: Rapid decision-making beats perfect planning.
Inclusivity: Great ideas can come from anywhere, not just leadership.
Iteration: Experiment, learn, and adapt quickly.
These principles aren’t limited to racing or streaming; they're foundational to every industry that wants to innovate sustainably.
Innovation Lessons from the Court
Even in sports, we see this mindset at work. Nick Nurse, head coach of the Toronto Raptors, experiments with new strategies constantly without throwing out the team’s core playbook. He tests small tweaks, communicates clearly, and earns buy-in through results.
This is innovation through trust and experimentation, not chaos and disruption.
The Takeaway: Build Outside to Evolve Inside
Denting the outside isn’t about abandoning what works. It’s about giving yourself permission to play to experiment, learn, and explore without threatening your core. The outside dents you create today could become the foundation of tomorrow’s success.
So, the next time your organization faces resistance to change, don’t push harder on the core. Step outside it. Start small. Move fast. Learn continuously.
Because the future rarely starts at the center it starts at the edges.
Frequently Asked Questions
Q1. What does denting the outside mean in business?
Denting the outside means experimenting beyond your company’s core operations to create new ideas or products. Instead of changing the core directly, businesses test innovations on the edge, which can later evolve into the new core if they succeed.
Q2. Why do most companies fail at innovation?
Companies often fail at innovation because they try to change their core systems too quickly. This triggers internal resistance to what's known as the organization’s immune system. The smarter way is to experiment outside the core where risk is lower and creativity thrives.
Q3. How can a company innovate without disrupting its core business?
A company can innovate safely by creating small, experimental projects outside its main business. These side dents allow testing new ideas without hurting what already works. If successful, these projects can gradually shape the company’s future direction.
Q4. How can leaders encourage innovation in their teams?
Leaders can foster innovation by giving teams freedom to experiment, valuing ideas from everyone, and rewarding learning over perfection. Open communication and trust help employees take creative risks without fearing failure.
Q5. Why is innovation important for long-term success?
Innovation keeps a business relevant and competitive in a fast-changing world. Companies that continuously adapt like Disney, Netflix, and Formula 1 don’t just survive disruption; they lead it. Innovation is how you future-proof your business.
About the Author:
Shawn Kanungo is a globally recognized disruption strategist and keynote speaker who helps organizations adapt to change and leverage disruptive thinking. Named one of the "Best New Speakers" by the National Speakers Bureau, Shawn has spoken at some of the world's most innovative organizations, including IBM, Walmart, and 3M. His expertise in digital disruption strategies helps leaders navigate transformation and build resilience in an increasingly uncertain business environment.