Trends and Future of Sustainable Development          9-10 June 2011, Tampere Finland                                     ...
Introduction: Disruptive Innovation [ DI ]                                             Introduction                       ...
Introduction Bottom of the Pyramid [BOP ]                                                          Introduction           ...
The Curiousity. [ DIBOP ]                            Introduction                            Objectives                   ...
What?Can DI occur                                                 Introductionat BOP?                                     ...
How?Prior Research                                        Introduction                                        Objectives  ...
Clarifying Basics. Innovations   Radical                •.        Telephone, Light Bulb          Introduction             ...
Clarifying Basics. BOP Redefined Global           Traditional BOP                                                    Intro...
How? Contd. DIBOP SimulationAgent Based Modelling                                           Introduction                  ...
How? DIBOP Simulation                                                   Introduction                                      ...
How? DIBOP Simulation                                                   Introduction                                      ...
Contribution: Mathematical ModelDI = Disruptive innovationI = innovationNE = New Entrant                                  ...
Contribution: Scenario Model                       High Innovation                                                        ...
Contribution: Theory Proposition I                                                              IntroductionThe impact of ...
Contribution: Theory Proposition II                                                       IntroductionThe level of DIBOP o...
Contribution: Role of IT                                                                                  Introduction    ...
Contribution: Disrupted Disruptionsstepping stones to the core disruption.                     IntroductionMinicomputer to...
Contribution: Why DI’s are Ignored.                                                IntroductionThe mystery of listening to...
Research Answers                                                                   Introduction                           ...
Disruptive Innovation                                                         at the Bottom of the Pyramid                ...
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Disruptive innovation at the bottom of the pyramid (DI BOP)

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Due to the different dynamics required for organizations to serve the emerging market
which contains billions of people at the bottom of the pyramid (BOP) coupled with the increasing desire for organizations to grow and be more multinational, organizations need to continually innovate. However, the tendency for large and established companies to ignore the BOP market and rather focus on existing markets, gives an indication of the existence of a vulnerability that potentially disruptive innovations from the BOP
will not be recognized in good time for a counter measure.

This can be deduced from the fact that good management practice advocates that managers should learn and listen to their customers. Therefore majority of the large existing companies continually focus on their main customer/market with sustaining innovations which leaves aspiring new
entrants with an under-served BOP market to experiment with.

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Disruptive innovation at the bottom of the pyramid (DI BOP)

  1. 1. Trends and Future of Sustainable Development 9-10 June 2011, Tampere Finland Disruptive Innovation at the Bottom of the Pyramid AbayomiBaiyere & JasparRoos Twitter: @speak2ab @jasparroos Image: wisemarketing.files.wordpress.com
  2. 2. Introduction: Disruptive Innovation [ DI ] Introduction Objectives Methodology Results Conclusion Leading Company Image: http://www.lawgazette.co.uk DIBOP Research
  3. 3. Introduction Bottom of the Pyramid [BOP ] Introduction $55+ per day 75–100 M Objectives TOP Methodology Results Conclusion Less than$4 per day [BOP] 4000 M People DIBOP Research
  4. 4. The Curiousity. [ DIBOP ] Introduction Objectives Methodology Results Conclusion DIBOP Research
  5. 5. What?Can DI occur Introductionat BOP? Objectives Can DIBOP Methodology impact sustainability of Results top companies? Conclusion How should DIBOPs be dealt with? DIBOP Research
  6. 6. How?Prior Research Introduction Objectives Methodology Results Conclusion Interviews Simulation DIBOP Research
  7. 7. Clarifying Basics. Innovations Radical •. Telephone, Light Bulb Introduction Objectives Methodology •. ResultsDiscontinuous Mobile phone, Inkjet printer Conclusion Disruptive •. Market Simple Non Mainstream /www.computerservicestoronto.com/ DIBOP Research
  8. 8. Clarifying Basics. BOP Redefined Global Traditional BOP Introduction Objectives Methodology •. BOP BOP ResultsRegional Conclusion BOP BOP B2B Fortune 500 SME DIBOP Research
  9. 9. How? Contd. DIBOP SimulationAgent Based Modelling Introduction Objectives Methodology Results Conclusion DIBOP Research
  10. 10. How? DIBOP Simulation Introduction Objectives Methodology Results ConclusionTo run the simulation visit: http://goo.gl/jII1h DIBOP Research
  11. 11. How? DIBOP Simulation Introduction Objectives Methodology Results ConclusionTo run the simulation visit: http://goo.gl/jII1h DIBOP Research
  12. 12. Contribution: Mathematical ModelDI = Disruptive innovationI = innovationNE = New Entrant Introduction Objectives Methodology Results = factor of disruptiveness Conclusion DIBOP Research
  13. 13. Contribution: Scenario Model High Innovation Introduction Objectives Methodology ResultsTOP Focus only BOP Focus Conclusion Low Innovation DIBOP Research
  14. 14. Contribution: Theory Proposition I IntroductionThe impact of a DI is independent of its region ofoccurrence, but is limited by the spread of the industry it Objectivesdisrupts. Methodology Results Conclusion Industry DIBOP Research
  15. 15. Contribution: Theory Proposition II IntroductionThe level of DIBOP occurrences can influence the gapbetween companies at the TOP and the BOP. Objectives Methodology Results Conclusion DIBOP Research
  16. 16. Contribution: Role of IT Introduction Objectives Methodology Results ConclusionIT capabilities not just for today but for tomorrow. "Theres a way to do it better—find it."— Thomas Edison Image: www.computerservicestoronto.com DIBOP Research
  17. 17. Contribution: Disrupted Disruptionsstepping stones to the core disruption. IntroductionMinicomputer to PC Objectives Methodology Results Conclusion…snuffed out early by competitors likely to be disrupted. DIBOP Research
  18. 18. Contribution: Why DI’s are Ignored. IntroductionThe mystery of listening to customers Objectives Methodology Results ConclusionThe pit of financial projections Image: http://joi.org/ DIBOP Research
  19. 19. Research Answers Introduction How should Can DIBOP ObjectivesCan DI occur DIBOPs beat BOP? have impact on dealt with? Methodology top companies? Results Yes Conclusion AmbidextrousOrganization Yes ..not because it Business Model Rethinking is DIBOP but because it is a DI Portfolio Diversification DIBOP Research
  20. 20. Disruptive Innovation at the Bottom of the Pyramid Abayomi Baiyere & Jaspar Roos For a related blog post visit: http://goo.gl/ylP26For the full research paper visit: http://goo.gl/u9JKU Twitter: @speak2ab @jasparroos Image: wisemarketing.files.wordpress.com
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