Disruption, don't be a victim
Post on 29-Oct-2014
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"It is almost banal to say so, yet it needs to be stressed continually: all is creation, all is change, all is flux, all is metamorphosis.” !Henry Miller - writer, revolutionary.
I AM SCOTT
@thescott
SCOTT@QUIRK.BIZ
Specialist generalist HEAD OF QUIRK LABS
THIS IS A PUBLIC SERVICE ANNOUNCEMENT…
black
1942 PSA “Five Inch Bathers” youtube.com/watch?v=E4j9QGlCNuA
DISRUPTIVE INNOVATION DON’T BE A VICTIM!
A disruptive innovation is an innovation that helps create a new market and value
network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology.
Successful companies (incumbents) can put too much emphasis on customers' current needs and fail to adopt new technology or business models that will meet customers' unstated or future needs; such companies will eventually fall behind. (And spend the years playing catch-up e.g. Blackberry)
Qua
lity
Minimum customer need
Sustaining innovations
Incumbents treat innovation as a series of incremental improvements. They focus on improving the quality of their premium products to sustain their current business model
Resource: http://bit.ly/disruptionNYT
“The leaked New York Times innovation report is one of the key documents of this media age.” Nieman Journalism Lab.
Disruptive
innovations
Disruptors introduce new products that, at first, do not seem like a threat. Their products are cheaper, with poor quality — to begin with.
Qua
lity
Minimum customer need
Sustaining innovations
Resource: http://bit.ly/disruptionNYT
Qua
lity
Minimum customer need
Over time, disruptors improve their product, usually by adapting a new technology. The flashpoint comes when their products become “good enough” for most customers. They are now poised to grow by taking market share from incumbents.
Resource: http://bit.ly/disruptionNYT
It’s not about keeping up technologically, but rather the dilemma:
!STEER RESOURCES TO
TARGET NEW (RISKIER) VALUE NETWORKS
(Disruptive)BUSINESS AS USUAL
(Sustaining)
OR
WHY is it important now?
A tipping point of invention? (At the expense of your value chains)
THE CONSUMER MOBILITY STACK
CONNECTIVITY
HARDWARE
SOFTWARE
THE EXPERIENCE
OUR BEHAVIOUR
CONNECTIVITY
FASTER
CHEAPER
EVERYWHERE
FASTER
CHEAPER
EVERYWHERE
LTE-A Downloading 800Mb in 6s. A full length Blu-ray movie would take approximately 3mins to download.
- “African Undersea Cables", Steve Song, Many Possibilities, July 2009
http://bit.ly/1lvPm2b
CONNECTIVITY
HARDWARE
MORE ACCESSIBLE
MORE PERVASIVE
R450
Light: $7
Motion: $45
MORE ACCESSIBLE
NFC Stickers R2ea.
MORE PERVASIVE
Gesture
Proximity
Gyro
Accelerometer
Geomagnetic
Temp / Humidity
Barometer
Hall
Light
SAMSUNG GALAXY S4
R450
Light: $7
Motion: $45
MORE ACCESSIBLE
NFC Stickers R2ea.
MORE PERVASIVE
Gesture
Proximity
Gyro
Accelerometer
Geomagnetic
Temp / Humidity
Barometer
Hall
Light
SAMSUNG GALAXY S4
ESTIMOTE NEARABLES •Accelerometer, temp, GPS •$99 for 10 (incl API access)
MAKING STUFF IS GETTING #EASIER
CONNECTIVITY
HARDWARE
SOFTWARE
“Building on breakthroughs in WolframAlpha, the Wolfram Language lets you mix ordinary free-form
natural language into your code.” “Start using the Wolfram Language with no
programming knowledge”
“HYPER-RELEVANCY”
CONNECTIVITY
HARDWARE
SOFTWARE
THE EXPERIENCE
RELEVANT, DATA DRIVEN EXPERIENCES
DATA
EXPERIENCE
CUSTOMER
BRAND
“I expect a consistently relevant brand experience”
“We need a single view of each customer”
#BigData #BuzzwordOfTheYear #BigDataIsTheNewMobile
THE PRODUCTIVE PHASE
A new era of productivity enabled by technology, driven by a society that no longer sees the Internet as a mysterious, intangible, exclusive, and scary "thing".
CONNECTIVITY
HARDWARE
SOFTWARE
THE EXPERIENCE
OUR BEHAVIOUR
Harnessing the POWER of the Internet for personal gain and social benefit.
TAMING THE INTERNET
"IF I take a photo on Instagram THEN save the photo to dropbox"
??
Crowd funding
•1,217,419 Kiva lenders •$604,394,200 in loans •98.79% repayment rate
“Kiva lets individuals lend as little as $25 to help create opportunity around the world.”
Crowd funding
Crowd funding
Maker Communities
Never before has is been so easy to
make an idea happen.
100x
THEN vS Now
$$$$$ $
The Next Disruption Where Digital Will Lead Ushttp://youtu.be/yJ-L2IW5DaY
10x the innovators
1/10th the cost
100x more ideas
turned into reality
NOW x AFRICA
$
X the innovators
1/10th the cost
X more ideas
turned into reality
NOW x AFRICA
$
X the innovators
1/10th the cost
X more ideas
turned into reality
Unprecedented fragmentation and
creation of new value.
WHO’S BEEN DISRUPTED?
Britannica vs. ?
Betamax vs. VHS
iPhone vs. many value chains
Steve Balmer Microsoft CEO
iPhone vs. many value chains
GEARING FOR THE INVENTION ECONOMY
DISCLAIMER: None of the following is very easy.
1. DIGITAL TRANSFORMATION
Re-align your company’s TOTAL CUSTOMER
EXPERIENCE LIFECYCLE with the expectations of
the connected consumer.
THE DIGITAL BUSINESS
1. DIGITAL TRANSFORMATION
THE ENABLERS Openness Collaboration Leadership Resources
THE INHIBITORS Legacy - Systems & mindset Internal politics & silo thinking Egos & Self preservation Lack of understanding & expertise No “Customer Experience Officer”
80 20 10Sustaining business
as usualDeveloping and
guiding new ideas that come from the
10%
Trying new things Start small / Look for
ideas internally !
PRACTICE AGILE Hypothesise
Prototype (MVP) Test
Evaluate against data
2. EMBRACE the unknown NOW (RaTHER THAN ignoring it)
3. UNDERSTAND YOUR PURPOSE* THAT GUIDES
* “Visionary over commercial”
•Allows for focus and flexibility
•Use it to look for opportunity outside of your current product or service offering
•Use it to identify potential disruptor threats
OUR PURPOSE
3. UNDERSTAND YOUR PURPOSE THAT GUIDES
Amazon To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavours to offer its customers the lowest possible prices
Google To organise the world’s information and make it universally accessible and useful.
Nike To bring inspiration and innovation to every athlete* in the world. *”If you have a body, you are an athlete.”
Facebook To give people the power to share and make the world more open and connected.
4. START TAKING YOUR DATA SERIOUSLY
4. START TAKING YOUR DATA SERIOUSLY
•Active (data submission)
•Passive (sensors, tracking)
COLLECTLook for aimlessly wandering pockets of data that is collected and not used.
SHEPHERD
A DATA FRAMEWORK THAT RUNS ACROSS THE BUSINESS
4. START TAKING YOUR DATA SERIOUSLY
BE A PLATFORM Depending on the data, consider opening it up, enabling others to build (much better) experiences via your API. *
* The developer’s experience is an experience worth focusing on too.
YOU MAY BE DISRUPTED BECAUSE…•The barriers to entry for competition are lower than ever
before
•Your competitor set isn’t what it was yesterday
•Your customer experience sucks, and empowered people (the makers) create their own solutions (and value chains)
•You’re not flexible, adaptable, agile, open
•Your product/service strategy is based on the needs of your shareholders, not the needs of your customers.
@thescott SCOTT@QUIRK.BIZ
Thanks
Digital Disruption 101 Prescription•The Innovators Dilemma by Clayton M. Christensen - http://www.amazon.com/The-
Innovators-Dilemma-Revolutionary-Business/dp/0062060244
•The Capitalist’s Dilemma by Clayton M. Christensen and Derek van Bever - http://hbr.org/2014/06/the-capitalists-dilemma/ar/1
•The Next Disruption Where Digital Will Lead Us James McQuivey - http://youtu.be/yJ-L2IW5DaY
•Digital Isn't Software, It's a Mindset Aaron Dignan - http://99u.com/videos/23495/aaron-dignan-digital-isnt-software-its-a-mindset
•The Responsive OS Undercurrent - http://www.undercurrent.com/responsive-os + Responsive OS canvas: http://responsive.org/2014/05/introducing-the-responsive-os-canvas/
•On the Nature of Digital Transformation: 10 Observations - https://medium.com/business-startup-development-and-more/on-the-nature-of-digital-transformation-10-observations-9a889aa170d1
•New York Times Innovation Report - http://bit.ly/disruptionNYT
•Disruption Revolution - David Pasiak - https://www.disruptrev.com
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