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Disruption, don't be a victim

Oct 29, 2014

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Business

scott-gray

We're on the precipice of unprecedented value chain disruption. Lower barriers to entry (Internet everywhere, cheap connected hardware, easy to learn programming languages, data driven brand experiences, crowd funding and social validation) multiplied by an African population hungry for connection, for solutions, for invention and we're faced an unknown quantity of inventiveness - the invention economy.

This presentation aims to introduce the concept of disruption, build a rationale as to why it's coming, and how to deal with it NOW.

Audience: Corporates, large businesses, businesses ruled by legacy culture.

  • 1. "It is almost banal to say so,yet it needs to be stressedcontinually: all is creation, allis change, all is flux, all ismetamorphosis.!Henry Miller - writer, revolutionary.

2. I [email protected]@QUIRK.BIZ 3. Specialist generalistHEAD OF QUIRK LABS 4. THIS IS A PUBLIC SERVICEANNOUNCEMENT 5. black1942 PSA Five Inch Bathersyoutube.com/watch?v=E4j9QGlCNuA 6. DISRUPTIVE INNOVATIONDONT BE A VICTIM! 7. A disruptive innovation is an innovationthat helps createanewmarketandvaluenetwork, and eventuallydisruptsanexistingmarketandvaluenetwork (over a few yearsor decades), displacinganearliertechnology. 8. Successful companies (incumbents) can puttoo much emphasis on customers' currentneeds and fail to adopt new technology orbusiness models that will meet customers'unstated or future needs; such companieswill eventually fall behind. (And spend theyears playing catch-up e.g. Blackberry) 9. QualityMinimumcustomerneedSustaining innovationsIncumbents treat innovation as a series of incrementalimprovements. They focus on improving the quality of theirpremium products to sustain their current business modelResource: http://bit.ly/disruptionNYTTheleakedNewYorkTimesinnovationreportisoneofthekeydocumentsofthismediaage.NiemanJournalismLab. 10. DisruptiveinnovationsQualityMinimumcustomerneedSustaining innovationsDisruptors introduce new products that, at first, do notseem like a threat. Their products are cheaper, withpoor quality to begin with.Resource: http://bit.ly/disruptionNYT 11. QualityMinimumcustomerneedOver time, disruptors improve their product, usually byadapting a new technology. The flashpoint comes whentheir products become good enough for mostcustomers. They are now poised to grow by takingmarket share from incumbents.Resource: http://bit.ly/disruptionNYT 12. Its not about keeping uptechnologically, but ratherthe dilemma:!STEER RESOURCES TOTARGET NEW (RISKIER)VALUE NETWORKSORBUSINESS (Disruptive)AS USUAL(Sustaining) 13. WHY is it important now? 14. A tipping point of invention?(At the expense of your value chains) 15. THECONSUMERMOBILITYSTACKOURBEHAVIOURTHE EXPERIENCESOFTWAREHARDWARECONNECTIVITY 16. CONNECTIVITYFASTERCHEAPEREVERYWHERE 17. LTE-ADownloading 800Mb in 6s. A full length Blu-raymovie would take approximately 3mins toFASTERCHEAPERdownload.EVERYWHEREhttp://bit.ly/1lvPm2b- African Undersea Cables", Steve Song, Many Possibilities, July 2009 18. HARDWARECONNECTIVITYMOREACCESSIBLEMOREPERVASIVE 19. R450Light: $7Motion: $45MOREACCESSIBLENFC Stickers R2ea.MOREPERVASIVEGestureProximityGyroAccelerometerGeomagneticTemp / HumidityBarometerHallLightSAMSUNGGALAXY S4 20. R450Light: $7Motion: $45MOREACCESSIBLENFC Stickers R2ea.MOREPERVASIVEGestureProximityGyroAccelerometerGeomagneticTemp / HumidityBarometerHallLightSAMSUNGGALAXY S4ESTIMOTE NEARABLESAccelerometer, temp, GPS$99 for 10 (incl API access) 21. MAKINGSTUFF IS GETTING#EASIERSOFTWAREHARDWARECONNECTIVITY 22. Building on breakthroughs in WolframAlpha, theWolfram Language lets you mix ordinary free-formnatural language into your code.Start using the Wolfram Language with noprogramming knowledge 23. HYPER-RELEVANCYTHE EXPERIENCESOFTWAREHARDWARECONNECTIVITY 24. RELEVANT,DATA DRIVENEXPERIENCESEXPERIENCEI expect a consistentlyrelevant brand experienceCUSTOMERBRANDWe need a single view ofeach customerDATA#BigData#BuzzwordOfTheYear#BigDataIsTheNewMobile 25. THE PRODUCTIVE PHASEA new era of productivity enabledby technology, driven by a societythat no longer sees the Internet asa mysterious, intangible, exclusive,and scary "thing".OURBEHAVIOURTHE EXPERIENCESOFTWAREHARDWARECONNECTIVITY 26. TAMING THE INTERNETHarnessing the POWER of the Internetfor personal gain and social benefit. 27. "IF I take a photo onInstagram THEN savethe photo to dropbox" 28. ?? 29. Crowd funding 30. Kiva lets individuals lendas little as $25 to helpcreate opportunity aroundthe world.1,217,419 Kiva lenders$604,394,200 in loans98.79% repayment rateCrowd funding 31. Crowd funding 32. Maker Communities 33. Never before has ishappen. 100xbeen so easy tomake an idea 34. THEN vS Now$$$$$ $The Next Disruption Where Digital Will Lead Ushttp://youtu.be/yJ-L2IW5DaY10xthe innovators1/10ththe cost100xmore ideasturned into reality 35. NOW x AFRICA$Xthe innovators1/10ththe costXmore ideasturned into reality 36. NOW x AFRICA$XUnprecedentedthe innovatorsfragmentation andcreation of new value.1/10ththe costXmore ideasturned into reality 37. WHOS BEEN DISRUPTED? 38. Britannica vs. ? 39. Betamax vs. VHS 40. iPhone vs. many value chainsSteve Balmer Microsoft CEO 41. iPhone vs. many value chains 42. GEARING FOR THE INVENTION ECONOMY 43. DISCLAIMER:None of the following is very easy. 44. 1. DIGITAL TRANSFORMATIONRe-align your companysTOTAL CUSTOMEREXPERIENCE LIFECYCLEwith the expectations ofthe connected consumer.THE DIGITAL BUSINESS 45. 1. DIGITAL TRANSFORMATIONTHE ENABLERSOpennessCollaborationLeadershipResourcesTHE INHIBITORSLegacy - Systems & mindsetInternal politics & silo thinkingEgos & Self preservationLack of understanding & expertiseNo Customer ExperienceOfficer 46. 2. EMBRACE the unknown NOW (RaTHER THAN ignoring it)80 20 10Sustaining businessas usualDeveloping andguiding new ideasthat come from the10%Trying new thingsStart small / Look forideas internally!PRACTICE AGILEHypothesisePrototype (MVP)TestEvaluate against data 47. 3. UNDERSTAND YOUR PURPOSE* THAT GUIDES* Visionary over commercialAllows for focus and flexibilityUse it to look for opportunityoutside of your current product orservice offeringUse it to identify potentialdisruptor threatsOUR PURPOSE 48. 3. UNDERSTAND YOUR PURPOSE THAT GUIDESAmazonTo be Earths mostcustomer-centriccompany, wherecustomers can findand discoveranything they mightwant to buy online,and endeavours tooffer its customers thelowest possible pricesGoogleTo organise theworldsinformation andmake it universallyaccessible anduseful.NikeTo bring inspirationand innovation toevery athlete* inthe world.*If you have abody, you are anathlete.FacebookTo give people thepower to shareand make theworld more openand connected. 49. 4. START TAKING YOUR DATA SERIOUSLY 50. 4. START TAKING YOUR DATA SERIOUSLYCOLLECTActive (data submission)Passive (sensors, tracking)SHEPHERDLook for aimlesslywandering pockets ofdata that is collectedand not used.A DATA FRAMEWORK THATRUNS ACROSS THE BUSINESS 51. 4. START TAKING YOUR DATA SERIOUSLYBE A PLATFORMDepending on the data, consider openingit up, enabling others to build (muchbetter) experiences via your API. ** The developers experience is an experience worthfocusing on too. 52. YOU MAY BE DISRUPTED BECAUSEThe barriers to entry for competition are lower than everbeforeYour competitor set isnt what it was yesterdayYour customer experience sucks, and empowered people (themakers) create their own solutions (and value chains)Youre not flexible, adaptable, agile, openYour product/service strategy is based on the needs of yourshareholders, not the needs of your customers. 53. [email protected] [email protected] 54. Digital Disruption 101 PrescriptionThe Innovators Dilemma by Clayton M. Christensen - http://www.amazon.com/The-Innovators-Dilemma-Revolutionary-Business/dp/0062060244The Capitalists Dilemma by Clayton M. Christensen and Derek van Bever - http://hbr.org/2014/06/the-capitalists-dilemma/ar/1The Next Disruption Where Digital Will Lead Us James McQuivey - http://youtu.be/yJ-L2IW5DaYDigital Isn't Software, It's a Mindset Aaron Dignan - http://99u.com/videos/23495/aaron-dignan-digital-isnt-software-its-a-mindsetThe Responsive OS Undercurrent - http://www.undercurrent.com/responsive-os + ResponsiveOS 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-9a889aa170d1New York Times Innovation Report - http://bit.ly/disruptionNYTDisruption Revolution - David Pasiak - https://www.disruptrev.com