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Introduction to Disruptive Innovation

Introduction to the concepts of Disruptive Innovation and Blue Ocean Strategy

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Introduction to Disruptive Innovation

  1. 1. DISRUPTIVE INNOVATION
  2. 2. ALL THESE MOVIES FOLLOW THE EXACT SAME PLOT
  3. 3. FRIENDS = HOW I MET YOUR MOTHER
  4. 4. “The Americans have need of the telephone, but we do not. We have plenty of message boys.” Sir William Preece, British Post Office, 1878 HISTORY SHOWS WE ARE RESISTANT TO CHANGE
  5. 5. “Airplanes are interesting toys but of no military value.” Marechal Ferdinand Foch, Ecole de Guerre, 1911 HISTORY SHOWS WE ARE RESISTANT TO CHANGE
  6. 6. "I think there is a world market for maybe five computers." Thomas Watson, president of IBM, 1943 HISTORY SHOWS WE ARE RESISTANT TO CHANGE
  7. 7. MANY BUSINESSES LOOK EXACTLY THE SAME
  8. 8. MANY BUSINESSES LOOK EXACTLY THE SAME
  9. 9. MANY BUSINESSES LOOK EXACTLY THE SAME
  10. 10. BUT DISRUPTION CERTAINLY DOES HAPPEN
  11. 11. AVERAGE LIFESPAN OF COMPANIES Only 12% of Fortune 500 companies in 1955 were still on the list in 2014 In 1940, the life expectancy of a Fortune 500 firm was 75 years. Today, it’s less than 20 years.
  12. 12. Most of us don’t like change… but some of us do THE DANGER OF DISRUPTION
  13. 13. Most of us don’t like change… but some of us do It only takes one to disrupt an entire industry THE DANGER OF DISRUPTION
  14. 14. TODAY S1 S2 S3 S4 The Disruptive Innovation Model and Blue Ocean Strategy How to break away from traditional thinking patterns How to spot the killer trends coming for your industry Using the Product to Market Map to identify innovation opportunities within your existing business model
  15. 15. TOMORROW S5 S6 S7 S8 Customer Journey Mapping Implementation Session - Who Killed My Business? Managing people through intense periods of change Implementation Session - Develop a Disruptive Innovation
  16. 16. DISRUPTIVE INNOVATION MODEL
  17. 17. SUSTAINING vs DISRUPTIVE INNOVATION TIME Customer Needs PERFORMANCE+PRICE
  18. 18. TIME Customer Needs Incumbents drive sustaining innovation PERFORMANCE+PRICE SUSTAINING vs DISRUPTIVE INNOVATION
  19. 19. TIME Customer Needs Sustaining innovation overshoots customer needs PERFORMANCE+PRICE SUSTAINING vs DISRUPTIVE INNOVATION Incumbents drive sustaining innovation
  20. 20. TIME Customer Needs PERFORMANCE+PRICE Sustaining Innovation Disruptive Innovation SUSTAINING vs DISRUPTIVE INNOVATION
  21. 21. TIME Customer Needs PERFORMANCE+PRICE Sustaining Innovation Disruptive Innovation Disruptive innovation takes market share SUSTAINING vs DISRUPTIVE INNOVATION
  22. 22. EXAMPLES OF DISRUPTIVE INNOVATION - AIRBNB
  23. 23. EXAMPLES OF DISRUPTIVE INNOVATION - WEWORK
  24. 24. EXAMPLES OF DISRUPTIVE INNOVATION - PRINTRBOT
  25. 25. APPLICATION ACTIVITY 1. What are the needs of the majority of customers in your industry?
 2. Do providers under or over shoot these needs in terms of performance?
 3. Do providers under or over shoot customer expectations in terms of price?
  26. 26. WHERE IS YOUR INDUSTRY AND YOUR BUSINESS COMPETING ON THIS CURVE? TIME Customer Needs PERFORMANCE+PRICE
  27. 27. BLUE OCEAN STRATEGY
  28. 28. THE STRATEGY CANVAS COMPETING FACTORSLOW HIGH Industry Value Curve OFFERINGLEVEL
  29. 29. THE STRATEGY CANVAS COMPETING FACTORSLOW HIGH Industry Value Curve Blue Ocean Value Curve OFFERINGLEVEL
  30. 30. TAXIS vs UBERx LOW HIGH OFFERINGLEVEL Price Tim e to w ait Hassle ofpaying Chance of getting a taxiPeace ofm ind Quality of service Ease ofuse Trust TAXIS
  31. 31. TAXIS vs UBERx LOW HIGH OFFERINGLEVEL Price Tim e to w ait Hassle ofpaying Chance of getting a taxiPeace ofm ind Quality of service Ease ofuse Trust UBERx TAXIS
  32. 32. VIDEOS GAMES vs Wii LOW HIGH OFFERINGLEVEL Price Hires graphics Non gam ing functions Processing pow er Online gam ing Gam ing Titles M otion Fam ily friendly gam es PS2 / XBOX
  33. 33. LOW HIGH OFFERINGLEVEL Price Hires graphics Non gam ing functions Processing pow er Online gam ing Gam ing Titles M otion Fam ily friendly gam es PS2 / XBOX NINTENDO Wii VIDEOS GAMES vs Wii
  34. 34. APPLICATION ACTIVITY 1. What are the 5 to 7 factors on which your industry competes?
 2. Map these factors on the value curve in your workbook
 3. Plot the value curve that most businesses in your industry follow
 4. Have a first attempt at drawing what a Blue Ocean value curve might look like for your industry
  35. 35. WHAT IS YOUR INDUSTRY VALUE CURVE? LOW HIGH OFFERINGLEVEL Factor1 Factor2 Factor3 Factor4 Factor5 Factor6 Factor7
  36. 36. WHAT IS A POTENTIAL BLUE OCEAN VALUE CURVE FOR YOUR INDUSTRY? LOW HIGH OFFERINGLEVEL Factor1 Factor2 Factor3 Factor4 Factor5 Factor6 Factor7
  37. 37. The best ideas are STUPIDideas
  38. 38. PETER THIEL - PayPal, Palantir, Zero to One SEEMS LIKE A GOOD IDEA SEEMS LIKE A BAD IDEA SWEET SPOT
  39. 39. CHARACTERISTICS OF GOOD IDEAS THAT LOOK LIKE BAD IDEAS - CHRIS DIXON 1 Powerful people dismiss them as toys (Telephone, Skype) 2 They unbundle functions done by others (Craigslist, MOOCs) 3 They start off as hobbies (Apple, Bitcoin) 4 They challenge social norms (SnapChat, eBay, UberX)
  40. 40. What are the STUPID ideas in your INDUSTRY?
  41. 41. KEY TAKEAWAYS 1 Many of us aren’t as good at embracing change as we think 2 That is great news for innovators and disruptors 3 Sustaining Innovation opens the way to Disruptive Innovation 4 The Strategy Canvas shows how your industry currently competes 5 The best ideas are stupid ideas
  • HojiakbarMirzakulov

    Feb. 21, 2018
  • HasnanBaber

    Oct. 16, 2017
  • megamarina

    Aug. 17, 2017
  • manishaverma67

    Jun. 19, 2017
  • frubio

    Apr. 1, 2017

Introduction to the concepts of Disruptive Innovation and Blue Ocean Strategy

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