Thoughts on ho startups disrupt the 800 pound Gorilla
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Thoughts on beating the 800 pound Gorilla Réza Malekzadeh, [email protected]
description
Thoughts on how to disrupt the 800 pound Gorilla. What are the phases of disruption and why the business model matters as much as the technology, if not more.
Transcript of Thoughts on ho startups disrupt the 800 pound Gorilla
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Definition• Disruption displaces an existing market, industry, or
technology and produces something new and more efficient and worthwhile. It is at once destructive and creative.
Harvard Business School professor and disruption guru Clayton Christensen
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The New Classic Example
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Market Cap: $160+B Market Cap: <$1B
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But Not Just e-tail anymore
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2014 Revenue expected is over $3.2B
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Other Examples
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Winners Losers
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4 stages of Disruption
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Phase 1• New tech, product or service is available, is a limited, but
different, replacement for some existing, widely used and satisfactory solution
• Incumbent reaction: Inferior technology, limited features, lack of maturity, etc.
• Find early adopters, people willing to take risk
• Find focused target(s)
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vs.
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Phase 2• Innovators keep their focus and need to increase adoption
rate while filling gaps with the critical missing features• Incumbents continue to be dismissive and negative• Turn early adopters into
fans and evangelists
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vs.
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Phase 3• Now the market calls for the replacement of incumbents:
customers, partners, influencers• There is natural convergence towards the new product /
technology
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Phase 4• The melding creates whole new categories of products
and services, built upon a base of technology that appears completely different.
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Key Lessons• Innovation is not disruption• Cheaper is not a disruption• Focus at every stage• Technology is not the key disruptor, business model is• Startups need friends: build a successful ecosystem• Incumbents, react fast!
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Disaggregation of compute
And the same for networking…
