Post on 17-Jul-2015
!
Disruptive Innovation: The Paradox of Disruption
!THE WHOLE HISTORY OF ORGANIZATION AND
MANAGEMENT THEORY IS BASED ON THE IDEA THAT IT IS POSSIBLE TO ORGANIZE, PREDICT, AND CONTROL.
POWER AND CONTROL
!DIALECTICAL OPPOSITES
Innovate Avoid MistakesThink Long Term Deliver Results Now
Cut Costs Increase MoralReduce Staff Improve Teamwork
Collaborate Compete
Maintain Focus Be Opportunistic
Be Flexible Respect the Rules
Decentralize Retain Control
Low Costs High Quality
–Ben Horowitz “By definition they
are not obvious. In fact, they seem
insane. If they didn’t seem insane at the
time, they wouldn’t be breakthroughs”
Source: http://ilovefaygoslushies.deviantart.com/art/Insane-Base-415796210
PETER DRUCKER, “BECAUSE THE PURPOSE OF BUSINESS IS TO
CREATE A CUSTOMER, THE BUSINESS ENTERPRISE HAS TWO – AND ONLY TWO – BASIC
FUNCTIONS: MARKETING AND INNOVATION. MARKETING AND INNOVATION PRODUCE
RESULTS; ALL THE REST ARE COSTS.”
"What new and different things do we have to do, and when?"–Peter Drucker
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
Disruptive Innovation
Disruptive Innovation
Sustaining Innovation
80%
20%
Optimizing !Existing Markets / !Revenue Streams!
New Markets /!New Revenue!
New Markets /!New Revenue!
!
“SO ASK YOURSELF THREE QUESTIONS.”
!WHAT KIND OF INNOVATION DO I WANT?
!HOW MUCH INNOVATION DO I WANT?
!WHEN DO I WANT IT?
Projected cash stream from investing in Innovation & Marketing
More likely cash stream resulting from doing nothing
DCF and NPV methodologies implicitly make this comparison
Companies should be making this comparison
Assumed cash stream resulting from doing nothing
B
A
C
“FINANCIAL MIS-DIRECTION”
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
http://www.bluefinsolutions.com/Bluefin/media/Bluefin/PDFS/Bluefin-Solutions-Elastic-Innovation-Index-2014-Global-top-50-most-innovative-companies-(2).pdf!
!
ELASTIC !
• FLUIDITY TO ADAPT AND RESPOND
!• ABILITY TO CREATE
DEMAND
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
http://www.bluefinsolutions.com/Bluefin/media/Bluefin/PDFS/Bluefin-Solutions-Elastic-Innovation-Index-2014-Global-top-50-most-innovative-companies-(2).pdf!
AdaptiveCloud Infrastructure and Device CentricDeveloper-centric / ComputationalIdeas EconomyRadical AdjacenciesSocial CommunicationsEcosystemsMass DifferentiationCreative Independent TalentContinuous StrategyMultiple Options Management
ELASTIC
ARIE DE GEUS, “RESILIENT, LONG-LIVED COMPANIES ARE
THOSE THAT EXHIBIT CERTAIN OF THE BEHAVIOURS AND CHARACTERISTICS OF
LIVING ENTITIES.”✤ Strong sense of community and
collective identity around a set of common values
✤ Community where all members know that they will be supported in their endeavors to achieve their own goals – as well as the global goals of the community
✤ Openness to the outside world, tolerance for the entry of new individuals and ideas – in essence a manifest ability to learn and adapt to new circumstances
A“
THOSE THAT EXHIBIT CERTAIN OF THE BEHAVIOURS AND CHARACTERISTICS OF
LIVING ENTITIES!
“INNOVATE OR DIE”
!
EXPERIENTIAL WORKSHOPS WHERE YOU CAN PRACTICE “DOING DIFFERENT”
Directional Knowledge Identity & Motivation
Conceptual Knowledge Understanding &
Organization
Experiential Knowledge Skills & Awareness
Source: Knowledge System (Artistry Unleashed - Hilary Austen)
Mastery: Applying Developed
Knowledge Recognition, Effectiveness, Expertise, Purpose, Focus
Guides
Guides
Informs
Informs
Originality: Generating New
Knowledge Perception, Creativity, Innovation,
Flexibility, Openness
!THE LEARNING & INNOVATION LOOP
!WE HAVE ALREADY MOVED FROM
MANAGEMENT TO LEADERSHIP – AND NOW WE’RE GOING BEYOND
LEADERSHIP TO INSPIRATION… !
LEADERS MUST HELP PEOPLE ACCESS THEIR SOURCES OF
INSPIRATION, INTUITION AND IMAGINATION…
!TO FACILITATE SO THAT MY TEAM CAN
SENSE AND SEIZE EMERGING OPPORTUNITIES AS THEY ARISE IN
TODAY’S FAST PACED ENVIRONMENT
The Unexpected SuccessFailureOutside Event (Eureka Moment !)
Incongruity in Reality Asymmetry in Experience
Innovation on Process Need
Bridging a Gap
Change in Market Structure
Demographics
Changes in Perception Society Bites Back
New Knowledge
Drucker 7-Sources Christensen Disruption
What:
1) Simpler, Cheaper, & Good Enough
!2) Micro-Market
Underserved & Uncontested
!How:
1) Job-to-be-Done 2) Combinatory 3) Adjacencies 4) Trade-offs
!
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
Christensen
Horowitz
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be
Non-‐CustomersCustomers Refusing
Non-‐CustomersUnexplored
Non-‐Customers
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be
Non-‐CustomersCustomers Refusing
Non-‐CustomersUnexplored
Non-‐Customers20% 80%
Optimize Differentiate Value Prop. Problems, Needs, & Use Cases
Degrees of Doing Things Differently
!
MARKETING MIS-DIRECTION
PROUST ““THE REAL ACT OF DISCOVERY CONSISTS
NOT IN FINDING NEW LANDS, BUT IN SEEING WITH NEW EYES”
!WHAT BUSINESS ARE WE IN AND IS IT THE RIGHT BUSINESS?!
!CAN WE CREATE FUNDAMENTALLY NEW PRODUCTS AND SERVICES?!
!CAN WE REDEFINE THE BOUNDARIES BETWEEN DIFFERENT INDUSTRIES
AND SERVICES SO THAT NEW NICHES EMERGE? !!
CAN WE STRUCTURE OUR ORGANIZATION AROUND BUSINESS PROCESSES THAT REFLECT A CUSTOMER VIEWPOINT RATHER THAN THE
INFLUENCE OF TRADITIONAL DEPARTMENTAL STRUCTURES?!!
CAN WE REDESIGN BUSINESS PROCESSES IN A WAY THAT WILL INCREASE THE QUALITY OF PRODUCTION AND REDUCE COSTS?!
!CAN WE REPLACE OUR ORGANIZATIONAL HIERARCHY WITH A
NETWORK OF SELF-ARRANGED TEAMS?!
Sustaining Innovation
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
Problem is Understood !Existing Market (red ocean)
Improves Performance
Lowers Cost !Incremental Change!Customer is Known!Market is Predictable !Traditional Business Model !Talk to Mainstream!Market Research!
Disruptive Innovation
Problem is Undefined
New Market (blue ocean)
Innovation is a dramatic
game changer
Customer doesn’t know
Market is Unpredictable
Traditional Models Fail
Talk to Early Adopter
Customer Development
Gaps/BiasesOvershoot in Sustaining Innovation !
Status Quo / Extrapolated Financial Forecasts !
Understated / Invisible Threats !
Commitment to Sunk Costs !
Lack of empathy
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
Order Chaos
More Options & Possibilities
More Insights & Patterns
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
Launch180: GTA Incubator/Accelerator
!
INNOVATION CHALLENGES!
FOOD AND NUTRITION BEHAVIOUR !
SENIORS AGING AT HOME !
AFFORDABLE / SOCIAL HOUSING !
EARLY CHILDHOOD DEVELOPMENT !
EXPERIENTIAL EDUCATION !
INNOVATION & INCUBATION !
HACKING TRADITIONAL MEDIA !
LEADERSHIP & CULTURE
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
SOLUTION
UNINTENDED CONSEQUENCE
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
SPECIALIST
GENERALIST
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
EXPERT
CROWD
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
FINITE
INFINITE
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
REALITY
PERCEPTION
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
FIXED CAPITAL
HUMAN CAPITAL
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
INFORMATION
KNOWLEDGE
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
PLANNED
SURPRISE
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
COMPLICATE
COMPLEX
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
BIG DATA
STORIES EMPATHY
TOGETHER BE OPEN AND LISTEN
Breakthrough DisruptionOptimization Sustaining
!Soon to be Refusing
Non-‐CustomersUnexplored
Non-‐Customers
ARROGANCE
EXPERIMENTS
LIBERTÉ
ÉGALITÉ
LIBERTÉ
ÉGALITÉ
FRATERNITÉ
LIBERTÉ, ÉGALITÉ, FRATERNITÉ
THANK YOU