The document discusses the framework of innovation and disruption. It defines innovation as new technologies, processes or business models that create greater value. Disruptive innovation occurs when new entrants target overlooked customer segments with simpler, cheaper products. As they improve, they eventually disrupt established companies focused on their main customers. The framework examines how disruptions impact business models and the importance of company culture, talent empowerment, and change management in driving innovation.

1. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Framework on
Innovation and/or
Disruption
Overview
Ike Alisson
Stockholm
2016-10-27

2. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Table of Contents
1. ”Innovation” – Definition and Key Aspects
2. ”Disruptive Innovation” Framework
2.1 Theory of Innovation and Disruption
2.2 Business Model Impact
2.3 Purpose and Company Culture
2.4 Talent, Empowererment, Change Management,
Motivation and Engagement
3. Questions for consideration

3. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
1. Innovation – Definition and Key Aspects - 1
Innovation starts with:
idea technology
problem
business issue
The ”Soft” and ”Hard” parts of ”Innovation”

4. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
1. Innovation – Definition and Key Aspects - 2
Purpose/Goal/ Business Model / Corporate Values
Objective Business Case Company Culture
The ”Soft” and ”Hard” skills of ”Innovation”

5. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
1. Innovation – Definition and Key Aspects - 3
Technology - processes an organization transforms
- labor,
- capital,
- materials,
- information
products and services of greater value
Innovation - change in one of these technologies

6. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2. Disruptive Innovation Framework
Theory of Innovation
and Disruption
Business Model
Impact on
Innovation and
Disruption Process
Talent
Empowererment
Change
Management,,
Motivation,
Engagement,
Purpose &
Company Culture

7. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Theory of Innovation & Disruption
(Clayton Christensen)
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 1

8. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Established Firms
- leading innovators
- risky, complex, and expensive component
technologies,
- sustaining innovations in the industries
- successful pioneers
- Entrants: technology followers.
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 2

9. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
technologically straightforard
simpler product architecture,
less wanted
attributes valued only in
“Emerging” branches/
segments/markets
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 3

10. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
SUMMARY-1:
The established firms were, in fact,
- aggressive, innovative
- customer & market sensitive & oriented
- customers demand “captives”
- focused on improving products and services
demanded - in search and need of higher M%
Unable to confront :
- the downward vision and
- mobility (trajectory map).
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 4

11. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
SUMMARY-2:
Entrants targeted those ”over-looked” segments
- gained foothold/references/earned revenues
- delivered ”less”, but more ”suitable” functionality
- lower price
- functionality ”inferior” in the eyes of the large
accounts/customers
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 5

12. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
SUMMARY:
1. Established companies were unable to confront :
- the downward vision and
- mobility (trajectory map).
2. ”Disruption” - a PROCESS
- takes time
3. Impact on the Business Model(s)
4. Not all ”innovations” are ”disruptive” and ”succeed”
5. ”Disrupt” or ”be disrupted” might be misleading
- a unit separate from the ”core”
2.1 Disruptive Innovation Framework – Theory of Innovation and Disruption - 6

13. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2.2 Disruptive Innovation Framework – Business Model Impact - 1
Theory of Innovation &
Disruption
Business Model
Impact on
Innovation and
Disruption Process

14. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Key Aspects of a Business model are:
NOT thinking about the business model at all ?!?!?!
Central Focus - customer need/problem solved
(“get the job done” - CVP)
2.2 Disruptive Innovation Framework – Business Model Impact - 2

15. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Build a Profitability (Calculation) Model
“patience for growth, but
impatience for profit”
Existing Business Model and the Customer requirements
- how much change from/to
- need for a new model /unit?!?!
2.2 Disruptive Innovation Framework – Business Model Impact - 2

16. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Business Model Key Aspects:
1. Customer Value Proposition (CVP)
2. Profit formula*
- Revenue (PxQ)
- Cost (DC + IC + ES)
- M%
- Assets
Backwards
- variable costs ?!?!?!
- gross margins ?!?!?!
- dependencies?!?!?!
2.2 Disruptive Innovation Framework – Business Model Impact - 3

17. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Business Model Key Aspects:
3. Key Resources –
4. Key Processes
All 4
2.2 Disruption Innovation Framework – Business Model Impact - 4

18. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
a “new” business model that’s
not “new” &
“game-changing”
a waste of time and money”
2.2 Disruptive Innovation Framework – Business Model Impact - 5

19. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
When a “New Business Model” might be needed:
Case Study:
Management judgment
When?
change in CVP, PF, KP, KP.
But it’s not always that simple
five strategic circumstances for business model change:
2.2 Disruptive Innovation Framework – Business Model Impact - 6

20. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Theory of Innovation &
Disruption
Business Model
Impact on
Innovation and
Disruption Process
Purpose &
Company Culture
2.3 Disruptive Innovation Framework – Purpose and Company Culture - 1
Talent
Empowererment,
Change
Management,
Motivation,
Engagement,

21. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
The New Ways to Compete with Strategies for staying ahead.
2.3 Disruptive Innovation Framework – Purpose and Company Culture - 2

22. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2.3 Disruptive Innovation Framework – Purpose and Company Culture - 3

23. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Business experts: Purpose
a key to exceptional performance
Psychologists: Purpose
the pathway to greater well-being
2.3 Disruptive Innovation Framework – Purpose and Company Culture – 4

24. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
- Entrepreneur at a start-up
- the CEO of a Fortune 500 company,
- a Call Center Representative or
- a SW Developer
- ……..
Your Purpose is “Your Brand”,
what “you’re driven to achieve”,
the magic that makes you tick.
It’s not what you do,
it’s HOW you do your job and
WHY
2.3 Disruptive Innovation Framework – Purpose and Company Culture - 5

25. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
”Company Culture” promoting
Corporate Values”
2.3 Disruptive Innovation Framework – Purpose and Company Culture - 6

26. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
Theory of Innovation &
Disruption
Business Model
Impact on
Innovation and
Disruption Process
Talent
Empowererment,
Change
Management,
Motivation,
Engagement,
Purpose &
Company Culture
2.4 Disruptive Innovation Framework – Talent, Empowererment - 1

27. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
”Talent” is mixed with
”skill(s)”, ”knowledge” , ”experience”
”Talent” is neither ”skill(s)” nor
”knowledge” nor ”experience”
Talent is ……….
Manager’s role indispensable in
”discovering” and ”utilizing
employee’s ”talent” through ….
Few take into consideration the Peter’s
principle – ”promotion to …”
2.4 Disruptive Innovation Framework – Talent, Empowererment - 2

28. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2.4 Innovation and Disruption Framework – Empowererment and Talent - 3
According to research, employees’ level of motivation and engagement :
- A …….
- M…….
- P…….
“Casting” is crucial to
- utilize the employees’ talent
- to get the employee motivated and engaged and
- increase employee productivity
- Move control (accountability) to where the information is
- is there a focus on “excellence” or “avoiding mistakes”?
- is the middle-level managers holding a ”position of priviledge” or
”accountability”, ”responsibility”, and ”enhancement”?
- how “effectively” do you learn from mistakes?

29. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2.4 Innovation and Disruption Framework – Empowererment and Talent - 4
”Hire for an Attitude and Train for Skill”
punchline or reality ?!?!?!
Top 10 skills in 4th Industrial Revolution in 2020

30. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
2. Innovation and Disruption Framework
Theory of Innovation &
Disruption
Business Model
Impact on
Innovation and
Disruption Process
Talent
Empowererment,
Change
Management,
Motivation,
Engagement,
Purpose &
Company Culture

31. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
3. Questions to consider – 1
Why should one make business with you?
What is you main ”ways of working” principles?
What is the difference between ”success” and ”achievement”?
Do you ask questions to ”control” or ”verify” or ”learn”?
What is your attitude/aproach to ”helpful cassandras”?

32. AC/SL Ike Alisson ALICON SE – Commercial in Confidence
3. Questions to consider – 2
Do you feel comfortable with the ”invisible third party” – ”T”?
Do you strive/promote ”learning” and ”continous improvement”?
What are the phases of personal evolvement in a new job?!?!?
What are the factors that motivate people at work?
Are you familiar with the
”jaggedness”,
”context” and
”pathway” principles?
Rankings based on a survey of more than 3 000 executives and entrepreneurs