Internet Thinking(for ‘real’ companies)

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It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.

Charles Darwin

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Adapt or die

Any number of management gurus

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Studebaker 1852 - 1966

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Targets the 70% NZ businesses which don’t have a website

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Adapt or die

Does not work anymore

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Companies die even if they adapt

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Adapt or die

Disruptive Innovation

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Disruptive InnovationIncumbents, especially large and well entrenched, seldom survive fundamental technology changes in their industries

Disruption• By smaller, new companies• From outside the industry

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BackRub

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“But the Internet is only for the weightless economy”

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From near bankruptcy to global success: comprehensive business strategy enabled by the Internet

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Standard Thinking about the Internet

• Information

• Marketing, sales

• Customer service

Internet = technical stuff

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UFB = faster uploads = efficiency

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Tapping new sources of innovation

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Treating customers as co-producers(and funders!)

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Internet Thinking

Business strategy using the Internet to drive• Disruptive Innovation• Step change

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Don’t extrapolate the past to define the future

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“In the absence of nonlinear innovation, the destiny of the

industry is your destiny.”

Gary Hamel

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Disruptive Innovation

New Markets

New Distribution Channels

New Products/Services

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Rule of Thumb

• Energy• Finance• Health• Education

Any industry that has not changed fundamentally in 10 years is ripe for

disruptive innovation

• Government• Retail• Environment• Transport

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Disruption In Progress

• Academic articles peer review• Video workflow• Sports clubs raising money• Reducing counterfeits• Online learning• Family engagement

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New Platforms As Disruption Innovation

• New sources of supply• New user behaviour• Curation

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Find Out More

Richard Branson

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Summary

• Adaptation doesn’t work in Internet time. Disruptive innovation is the real opportunity

• Internet thinking is a business strategy for business leaders, including the non-technical

• The Internet has more impact on the ‘real’ economy than the ‘weightless’ one

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Questions / comments

Vikram KumarCEO, Mega Ltd.Email: vikram@mega.co.nzTwitter: @vikram_nz