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Digital Disruption: Unleashing the
Next Wave of Innovation
James L. McQuivey, Ph.D.
Vice President, Principal Analyst
@jmc...
The barriers to entry in your market just
vanished. Are you ready?
A disruption long in the making

© 2013 Forrester Research, Inc. Reproduction Prohibited
Two objections to digital disruption

1

People will never do that

2

It will cost too much to do

© 2013 Forrester Resea...
Digital disruption epitomized
“When companies adopt
technology, they do old
things in new ways;
internalize
when companies...
Digital disruptors do this

›

They will build Better product experiences

›

That create Stronger customer
relationships
...
Digital disruption is better, stronger,
faster
Old disruption

Digital disruption

10xtors
the inn va
o
1/10th
the cost
10...
Tablets are a symptom, not a cause, of
disruption

Your customers and employees have already
invested in the devices you’l...
Digital disruption is built on digital
platforms

› Devices lay the foundation
› Software builds the experience on top of ...
The five platforms vying for consumer
control
• Tools to connect to
consumers
• Open development
environments
• Infrastruc...
To enable the next product
experiences, you must digitally
Product
Process
disrupt your product and your process

© 2013 F...
employees &
Step 1: Harness digital consumers
partners
60+ million

155+ million

30+ million

Apple took two years to sel...
Step 2: Generate more ideas more
quickly
BY INNOVATING THE ADJACENT POSSIBLE

?
Don’t build the future; build the next thi...
Disney: a big company gone disruptive
▪

Disney learned from Angry Birds
what people wanted next, creating
‘Where’s My Wat...
Disney continues innovating the adjacent
possible
Section 3: Deliver total product
experiences
Total product experiences go beyond
traditional boundaries — onto new
platfor...
Digital disruption yet to come: the Magic Mirror

Mirror, Mirror on the wall…
Magic Mirror
Eyes
Lips

Image source: August...
Digital disruption yet to come: the Magic Mirror

Mirror, Mirror on the wall…
Magic Mirror
Eyes

Hair

Lips

Skin

Call
Ke...
Digital disruption yet to come: the Magic Mirror

Mirror, Mirror on the wall…
Magic Mirror
Eyes
Lips

Call Kerry

Image so...
For which companies is the Magic Mirror
an adjacent product experience?

› Media companies have the content
› Retailers se...
© 2013 Forrester Research, Inc. Reproduction Prohibited
For which companies is the Magic Mirror
an adjacent product experience?

› Media companies have the content
› Retailers se...
Nestle off to a good start with its product innovation

› BabyNes: A high-end baby
formula preparation device

› Good: Cus...
UPS launches a new, revenue-generating
customer relationship

UPS has created a freemium-to-subscription business
relation...
A large payments processor saves time,
money, and increases security

By taking advantage of Terracotta’s BigMemory in-mem...
Questions for aspiring digital disruptors:

› How will you create an ongoing digital customer
relationship?

› How will yo...
The path to disruption
›
›
›

Senior-level commitment to putting the customer first

›
›

Test and measure; expect and acc...
What do I do now?
Find out more about digital disruption:
see videos, take a self-assessment, and
download free chapters f...
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Digital Disruption: Unleashing the Next Wave of Innovation

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Your old business model won't work.
Are you ready to face competitors taking advantage of disruptive technologies like mobile and social? To succeed, you, too, must become a disruptive force.

Published in: Business, Technology

Transcript of "Digital Disruption: Unleashing the Next Wave of Innovation"

  1. 1. Digital Disruption: Unleashing the Next Wave of Innovation James L. McQuivey, Ph.D. Vice President, Principal Analyst @jmcquivey http://solutions.forrester.com/disruption
  2. 2. The barriers to entry in your market just vanished. Are you ready?
  3. 3. A disruption long in the making © 2013 Forrester Research, Inc. Reproduction Prohibited
  4. 4. Two objections to digital disruption 1 People will never do that 2 It will cost too much to do © 2013 Forrester Research, Inc. Reproduction Prohibited
  5. 5. Digital disruption epitomized “When companies adopt technology, they do old things in new ways; internalize when companies internalize technology, they find disruptive new things to do.” They become digital disruptors
  6. 6. Digital disruptors do this › They will build Better product experiences › That create Stronger customer relationships › Bringing it all to market Faster You have to do this, too
  7. 7. Digital disruption is better, stronger, faster Old disruption Digital disruption 10xtors the inn va o 1/10th the cost 100X the power Source: October 27, 2011, “The Disruptor’s Handbook” Forrester
  8. 8. Tablets are a symptom, not a cause, of disruption Your customers and employees have already invested in the devices you’ll depend on
  9. 9. Digital disruption is built on digital platforms › Devices lay the foundation › Software builds the experience on top of it › Consumers believe in it Digital platforms provide the infrastructure of the digitally disrupted economy © 2013 Forrester Research, Inc. Reproduction Prohibited
  10. 10. The five platforms vying for consumer control • Tools to connect to consumers • Open development environments • Infrastructure resources
  11. 11. To enable the next product experiences, you must digitally Product Process disrupt your product and your process © 2013 Forrester Research, Inc. Reproduction Prohibited
  12. 12. employees & Step 1: Harness digital consumers partners 60+ million 155+ million 30+ million Apple took two years to sell 1 million iPods.
  13. 13. Step 2: Generate more ideas more quickly BY INNOVATING THE ADJACENT POSSIBLE ? Don’t build the future; build the next thing people really need and let the future find you. © 2013 Forrester Research, Inc. Reproduction Prohibited
  14. 14. Disney: a big company gone disruptive ▪ Disney learned from Angry Birds what people wanted next, creating ‘Where’s My Water?’ ▪ This tests the waters for Disney in apps and YouTube – both critical fronts in the digital media future ▪ Importantly, it gave Disney the chance to innovate adjacent possibilities
  15. 15. Disney continues innovating the adjacent possible
  16. 16. Section 3: Deliver total product experiences Total product experiences go beyond traditional boundaries — onto new platforms, during new moments, leading to deeper, more measurable customer engagement and satisfaction
  17. 17. Digital disruption yet to come: the Magic Mirror Mirror, Mirror on the wall… Magic Mirror Eyes Lips Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report Hair Skin
  18. 18. Digital disruption yet to come: the Magic Mirror Mirror, Mirror on the wall… Magic Mirror Eyes Hair Lips Skin Call Kerry Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report
  19. 19. Digital disruption yet to come: the Magic Mirror Mirror, Mirror on the wall… Magic Mirror Eyes Lips Call Kerry Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report Hair Skin
  20. 20. For which companies is the Magic Mirror an adjacent product experience? › Media companies have the content › Retailers sell the products › Manufacturers want the customer loyalty
  21. 21. © 2013 Forrester Research, Inc. Reproduction Prohibited
  22. 22. For which companies is the Magic Mirror an adjacent product experience? › Media companies have the content › Retailers sell the products › Manufacturers want the customer loyalty › Platforms want to enable all of it What is the most unexpected place you will serve your customer in the future?
  23. 23. Nestle off to a good start with its product innovation › BabyNes: A high-end baby formula preparation device › Good: Customer-focused, built in cross-functional R&D team, funded independently › Better: Copy Withings
  24. 24. UPS launches a new, revenue-generating customer relationship UPS has created a freemium-to-subscription business relationship with 2.5 million recipients of its packages, giving them the opportunity to use apps and web experiences to opt for better delivery outcomes – change of time or location. This has created new revenue opportunity for UPS as some of its customers pay $40 a year to have even more customized delivery options.
  25. 25. A large payments processor saves time, money, and increases security By taking advantage of Terracotta’s BigMemory in-memory data processing cloud, this financial services company has gone from applying just 50 fraud detection rules to thousands, dramatically improving accuracy while lifting transaction processing limits by 30x. The result is an estimated $10 million a year saved from fraud detection mistakes and fees for latency
  26. 26. Questions for aspiring digital disruptors: › How will you create an ongoing digital customer relationship? › How will you generate more ideas more quickly? › What does your total product experience look like? › What is the role of technology & operations? › What partners will get you there quickly? What does it take to do this? © 2013 Forrester Research, Inc. Reproduction Prohibited
  27. 27. The path to disruption › › › Senior-level commitment to putting the customer first › › Test and measure; expect and accept failure Disrupt the process in order to disrupt the product Give authority to small teams to generate focused innovations Partner to get there quickly Release the disruptor within
  28. 28. What do I do now? Find out more about digital disruption: see videos, take a self-assessment, and download free chapters from the book by James McQuivey: http://solutions.forrester.com/disruption Forrester wrote the book on Digital Disruption: Buy it now on Amazon.com. © 2013 Forrester Research, Inc. Reproduction Prohibited
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