Israel Designed International Development 2013Nava Levy, January 8th 2013, Mizpe Ramon, Israel
   Introduction   What are disruptive innovations, examples    from the business sector   How disruptive innovations ar...
IntroductionLudwick Marishane in TED: “Dry Bath”
“A disruptive innovation is an innovation that  helps create a new market and value  network, and eventually goes on to di...
“A disruptive innovation is an innovation that  helps create a new market and value  network, and eventually goes on to di...
Free Operating         Internet subscription            System               Service for videos                           ...
Cheaper,   Inferior                                Technology                    Simpler, Smaller Performance        More ...
Performance          Target Market                                Mainstream customers             Inferior           don’...
Performance          Target Market                                Mainstream customers             Inferior           don’...
   Term disruptive technology was    coined by Prof Clayton Christensen    in the 90s   He then replaced disruptive    t...
   Term disruptive technology was    coined by Prof Clayton Christensen    in the 90s   He then replaced disruptive    t...
Example        Disruptive    Disruptive     Disrupted                 Innovation   Technology       Markets               ...
Example          Inferior        Cheaper, simpler          Technology                 Performance        smaller, more    ...
Example    Disruptive    Disruptive        Disrupted           Innovation   Technology          Markets                   ...
Example      Inferior            Cheaper,                Technology           Performance        simpler, smaller,        ...
Example    Disruptive    Disruptive       Disrupted            Innovation   Technology         Markets              .com  ...
Example       Inferior           Cheaper,              Technology            Performance       simpler, smaller,        Pr...
Example         Disruptive        Disruptive       Disrupted                           Innovation       Technology        ...
Example         Disruptive        Disruptive       Disrupted                           Innovation       Technology        ...
Example   Disruptive    Disruptive       Disrupted          Innovation   Technology         Markets              SaaS   Mu...
Example     Inferior         Cheaper, simpler,          Technology          Performance         smaller, more             ...
   The Internet, mobile, semiconductors    and cloud computing are key    infrastructural technologies that are    Semico...
For Social Change
*a.k.a “catalytic innovations”                                        M-Health,                                       Tele...
Images of pyramids adapted from Christensen, Hart,MIT Sloan Management Review , 2002
Images of pyramids adapted from Christensen, Hart,MIT Sloan Management Review , 2002
In the past decade                Mostly recently, and accelerating                     Images of pyramids adapted from Ch...
In the past decade                Mostly recently, and accelerating                                              Mobile Ba...
Example    Disruptive    Disruptive        Disrupted           Innovation   Technology          Markets            Wireles...
Example      Inferior      Cheaper, simpler,      Technology           Performance      smaller, more         Progression ...
Grameen Village Phone                                        Today                         • A decade ago more than 3 Bill...
Grameen Village Phone                                        Today                         • A decade ago more than 3 Bill...
Example    Disruptive          Disruptive       Disrupted           Innovation         Technology         Markets         ...
Example     Inferior         Cheaper, simpler,         Technology          Performance         smaller, more            Pr...
The Challenge                   The Solution       • No available                  •“For many other cultures,         ency...
The Challenge                                      The Solution       • No available                                     •...
Example   Disruptive     Disruptive        Disrupted          Innovation    Technology          Markets             Solar ...
Example         Inferior          Cheaper, simpler,         Technology               Performance          smaller, more   ...
The Challenge                       The Solution   •In 2002, there were 2 billion        • Clean renewable off grid    peo...
The Challenge                       The Solution   •In 2002, there were 2 billion        • Clean renewable off grid    peo...
Example    Disruptive        Disruptive             Disrupted           Innovation       Technology               Markets ...
Example       Inferior            Cheaper,              Technology            Performance        simpler, smaller,        ...
The Challenge                     The Solution                                     •Dry bath for cleanliness &   •2.5 bill...
The Challenge                                 The Solution                                                    •Dry bath fo...
Definition:                                        Examples for potential According to Gartner, Big Data isbecoming a met...
Corporate SocialSocial Entrepreneur                                                    Responsibility Officer“Doing well w...
Corporate Social                                    Social       NGO                                                      ...
   Most established companies fail in commercializing disruptive    innovations. To succeed, established vendors need to:...
Christensen, et al HBR, 12/2006                                  Christensen, Hart, MIT Sloan                             ...
Christensen, et al HBR, 12/2006                                  Christensen, Hart, MIT Sloan                             ...
Thank You Levy.nava@gmail.com
ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy
ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy
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ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy

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This session took place on January 8 2013 at the Israel Designed International Development (ID2) Gathering (www.id2.org.il) in Mizpe Ramon, Israel.

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Transcript of "ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy "

  1. 1. Israel Designed International Development 2013Nava Levy, January 8th 2013, Mizpe Ramon, Israel
  2. 2.  Introduction What are disruptive innovations, examples from the business sector How disruptive innovations are / can drive social change Recommendations and Q&A
  3. 3. IntroductionLudwick Marishane in TED: “Dry Bath”
  4. 4. Definition, example fordisruptive technologies, etc.
  5. 5. “A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology.The term is used… to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market.”  Source: Wikipedia
  6. 6. “A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology.The term is used… to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market.”  Source: Wikipedia
  7. 7. Free Operating Internet subscription System Service for videos Inkjet PrintersDigital Camera Online bookstore Online digital Music store Wireless Telephony SaaS Free long distance Internet distance calls
  8. 8. Cheaper, Inferior Technology Simpler, Smaller Performance More Convenient Progression And so, the Innovation that But, has other technology evolves mainstream attributes, that and advances in customers don’t other customers, market segmentswant today due to usually in smaller and opportunities their inferior emerging markets, that are outside ofperformance today value incumbents radar
  9. 9. Performance Target Market Mainstream customers Inferior don’t want today performanceDisruptive >Low-end disruptions >New-market disruptions Superior performanceSustaining >Incremental Existing & higher tiers customers do want today > Discontinuous/ revolutionary/ radical
  10. 10. Performance Target Market Mainstream customers Inferior don’t want today performanceDisruptive >Low-end disruptions >New-market disruptions Superior performanceSustaining >Incremental Existing & higher tiers customers do want today > Discontinuous/ revolutionary/ radical
  11. 11.  Term disruptive technology was coined by Prof Clayton Christensen in the 90s He then replaced disruptive technology with the term disruptive innovation .. …because he recognized that it is the strategy or business model that the technology enables that creates the disruptive impact
  12. 12.  Term disruptive technology was coined by Prof Clayton Christensen in the 90s He then replaced disruptive technology with the term disruptive innovation .. …because he recognized that it is the strategy or business model that the technology enables that creates the disruptive impact
  13. 13. Example Disruptive Disruptive Disrupted Innovation Technology Markets Digital CMOS Image Film & Photography Sensors Instant PhotographyDigital Camera 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  14. 14. Example Inferior Cheaper, simpler Technology Performance smaller, more Progression convenient - Low picture -No need to buy & On going quality develop film improvements e.g. -Low resolution -Smaller, simpler, in image quality & -Long shutter instant photos resolution, memory lag -Cheap: e.g. built in card capacity, phones thanks to CMOS - Store many pictures technology, to theDigital Camera on memory card point of threatening -Edit & share digital also highest end photos markets
  15. 15. Example Disruptive Disruptive Disrupted Innovation Technology Markets Key: thermal Inkjet inkjet Laser printing technology printers based on MEMS using Inkjet thin-filmPrinters resistors to supply heat pulse 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  16. 16. Example Inferior Cheaper, Technology Performance simpler, smaller, Progression more convenient -Low picture -Smaller, affordable - Going upstream quality and pricing (although per through on going resolution: 96- page pricing improvements dpi output, did customers may pay mainly in picture not support full more compared laser quality color pictures printers) - HP has filed over -Slow: 150 300 patents over the Inkjet characters per years to supportPrinters second these technological improvements
  17. 17. Example Disruptive Disruptive Disrupted Innovation Technology Markets .com Internet Brick & retailers mortar retailers OnlineBookstore 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  18. 18. Example Inferior Cheaper, Technology Performance simpler, smaller, Progression more convenient -TTM: waiting -Anywhere anytime - Moving upstream for book to -Longtail books that through technology arrive via post are not readily progression and -Unable to available at innovations and by browse through bookstores leveraging cloud & book before big data buying technologies: Online -Customer “personalizedBookstore service recommendation engine, reviews, browsing inside a book, etc.
  19. 19. Example Disruptive Disruptive Disrupted Innovation Technology Markets Brick & mortarPhase .com retailers Internet retailers 1 Online Bookstore Downloadable Physical goods digital goods Internet, sold via Brick &Phase Kindle, E-Ink, mortar or .com 2 iPod retailers Kindle, iTunes eBooks, eMusic B& M retailers Digital goods- Internet, DRM, and/or eGoods as-a-service, streaming retailers not subscription supporting Kindle Lending based subscription Library, Oyster subscription
  20. 20. Example Disruptive Disruptive Disrupted Innovation Technology Markets Brick & mortarPhase .com retailers Internet retailers 1 Online Bookstore Downloadable Physical goods digital goods Internet, sold via Brick &Phase Kindle, E-Ink, mortar or .com 2 iPod retailers Kindle, iTunes eBooks, eMusic B& M retailers Digital goods- Internet, DRM, and/or eGoods as-a-service, streaming retailers notPhase subscription supporting 3 Kindle Lending based subscription Library, Oyster subscription
  21. 21. Example Disruptive Disruptive Disrupted Innovation Technology Markets SaaS Multi-tenancy, (software- cloud On Premise as-a- computing Software service)CRM OnDemand 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  22. 22. Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Low Integration -Affordable, per -Beginning at the -Low subscriber pricing low end of the customization -Accessible anywhere, market: SMBs -Breadth of anytime -Moving upstream Functionality -All you need is a through technology - Security browser, no hardware progression by concerns or software to installCRM On -Web based consumer leveraging “the broad and richDemand like user interface foundation of the internet”
  23. 23.  The Internet, mobile, semiconductors and cloud computing are key infrastructural technologies that are Semiconduc enabling the disruption of many Mobile tors industries This is enabled by going to the low Cloud end of the market and gradually SaaS moving upstream through a series of Computing innovations, eventually displacing mainstream solutions Internet However, in all of these examples this “low end of the market” was merely the bottom of developed markets
  24. 24. For Social Change
  25. 25. *a.k.a “catalytic innovations” M-Health, Telemedicine Solar VoIP, Energy, Mobile Wind Comms Energy Disruptive Technologies & Innovations M-money eLearning, Micro mLearning, financing OER
  26. 26. Images of pyramids adapted from Christensen, Hart,MIT Sloan Management Review , 2002
  27. 27. Images of pyramids adapted from Christensen, Hart,MIT Sloan Management Review , 2002
  28. 28. In the past decade Mostly recently, and accelerating Images of pyramids adapted from Christensen, Hart, MIT Sloan Management Review , 2002
  29. 29. In the past decade Mostly recently, and accelerating Mobile Baby TeleDoc Solar energy (e.g.Innoafrica) Images of pyramids adapted from Christensen, Hart, MIT Sloan Management Review , 2002
  30. 30. Example Disruptive Disruptive Disrupted Innovation Technology Markets Wireless Semiconductors: Wireline Telephony GaAs and CMOS TelephonyCellular Phone 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  31. 31. Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Low coverage -Mobile -While in the 90s -Low voice -Caller ID these were cheap quality -Contacts stored phones for the -Disconnects -Built-in watch, mass, through -Radiation camera, digital series of assistant, etc. improvements in -Pre paid voice quality, coverage, etc. moved upstream cannibalizingCellular wireline telephony at first for voice and Phone then data
  32. 32. Grameen Village Phone Today • A decade ago more than 3 Billion • Mobile phone use in developing people still lacked reliable countries surpassed that of telephone service, however developed areasRepackaging technology mobile phones still too expensive • In Africa, mobile subscribers for BoP grew from 25M in 2001 to 650M • So instead, Grameen bank gave • Mobile apps empower individuals loans to lady entrepreneurs in users enrich their lifestyles and rural Bangladesh to buy phone livelihoods, and boost the and resell it to villagers economy as a whole. • Result: • Lifting from poverty the lady entrepreneurs, with money spent mainly on health & education for kids • Positive financial impact of service to customers, with value of each call of up to 10% of monthly income Sources of images: Word Bank
  33. 33. Grameen Village Phone Today • A decade ago more than 3 Billion • Mobile phone use in developing people still lacked reliable countries surpassed that of telephone service, however developed areasRepackaging technology mobile phones still too expensive • In Africa, mobile subscribers for BoP grew from 25M in 2001 to 650M • So instead, Grameen bank gave • Mobile apps empower individuals loans to lady entrepreneurs in users enrich their lifestyles and rural Bangladesh to buy phone livelihoods, and boost the and resell it to villagers economy as a whole. • Result: • Lifting from poverty the lady entrepreneurs, with money spent mainly on health & education for kids • Positive financial impact of service to customers, with value of each call of up to 10% of monthly income Sources of images: Word Bank
  34. 34. Example Disruptive Disruptive Disrupted Innovation Technology Markets Leveraging Internet & Wiki Printed and OpenSource & Technology digital paid Crowdsourcing (MediaWiki) encyclopedia over the Internet to generate high quality free encyclopedia 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  35. 35. Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Breadth -Free -Technology -Reliability and -Accessible anywhere, progression solved accuracy all you need is a technical issues -Images browser such as uptime and -Always up to date adding images -Searchable - With time and the -Multi languages power of crowdsourcing reliability improved and breadth surpassed mainstream Encyclopedia
  36. 36. The Challenge The Solution • No available •“For many other cultures, encyclopedia in many in which there are no strong commercial cultures / languages incentives to create in developing encyclopedia, Wikipedia is countries - the only comprehensive commercial or encyclopedia available at otherwise all. Therefore, the impact of Wikipedia has been more revolutionary and crucial for those cultures in the “long tail” of the languages list.” Source: The Wikipedia Revolution
  37. 37. The Challenge The Solution • No available •“For many other cultures, encyclopedia in many in which there are no strong commercial cultures / languages incentives to create in developing encyclopedia, Wikipedia is countries - the only comprehensive commercial or encyclopedia available at otherwise all. Therefore, the impact of Wikipedia has been more revolutionary and crucial for those cultures in the “long tail” of the languages list.” Source: The Wikipedia Revolution Note: •While progress has been made the full impact on BoP is yet to be realized. •Among the “packaging challenges” are the ability of the local community to contribute as well as ability to access & edit via mobile phones.
  38. 38. Example Disruptive Disruptive Disrupted Innovation Technology Markets Solar Semiconductors, Grid Energy – Solar electricity sustainable photovoltaics off grid Solar solution forPanels energy 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  39. 39. Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Availability: -Clean, safe energy - Gradual efficiency daytime, sunny -Relatively mobile improvements -Storing energy -No need for grid leading to grid -Upkeep is costly infrastructure parity and beyond -Modular, add more as (2020 for the whole you need of Europe, Italy already by 2013)Solar Panels
  40. 40. The Challenge The Solution •In 2002, there were 2 billion • Clean renewable off grid people living without solutions such as solar energy • In addition to light at night, electricity, half of them in provides necessary electricity to Africa power water pumps and cool •In these poor rural areas no vaccines grid system exists • Repackaging for BoP: •30% of income spent on • Bring the knowhow and train candles, kerosene and the community and its leaders diesels as alternative • Set up a business to cover maintenance costs (recharge – dangerous, expensive and mobile phones business) polluting alternative • As a result, number of people living without electricity down to 1.3 billion. Source: Adapted from Innoafrica
  41. 41. The Challenge The Solution •In 2002, there were 2 billion • Clean renewable off grid people living without solutions such as solar energy • In addition to light at night, electricity, half of them in provides necessary electricity to Africa power water pumps and cool •In these poor rural areas no vaccines grid system exists • Repackaging for BoP: •30% of income spent on • Bring the knowhow and train candles, kerosene and the community and its leaders diesels as alternative • Set up a business to cover maintenance costs (recharge – dangerous, expensive and mobile phones business) polluting alternative • As a result, number of people living without electricity down to 1.3 billion. Source: Adapted from Innoafrica
  42. 42. Example Disruptive Disruptive Disrupted Innovation Technology Markets Skin lotion Germicidal Bath- Bathing soap, made to substituting™ skin gel; Baths and substitute lotion/gel. showers bathing, packaged inDry Bath small per bath packs. 1. Inferior performance 2. Cheaper & simpler 3. Technology progression
  43. 43. Example Inferior Cheaper, Technology Performance simpler, smaller, Progression more convenient -The pleasure of -No need for water - Moving upstream using warm water or bath from waterless hygiene -Requires a -Mobile, available solution to the poor to change of mindset anywhere, anytime a bathing-alternative to of what clean -TTM – quicker more affluent means -Modular, pay per - Added moisturizers, use (bath) model and in the future we -Eco friendly may see other addition like sun screen,Dry Bath vitamins (e.g. D), etc. -Targeting upstream markets as airlines, armies, hotels, lazy teenagers… -Other potential: Gyms at work, for long treks
  44. 44. The Challenge The Solution •Dry bath for cleanliness & •2.5 billion people globally convenience do not have proper access •Saves 2 hours a day and to water and sanitation 800 liters in water •As a result, over 2 million people suffer and often die from easily treatable diseases like trachoma and diarrhoea
  45. 45. The Challenge The Solution •Dry bath for cleanliness & •2.5 billion people globally convenience do not have proper access •Saves 2 hours a day and to water and sanitation 800 liters in water •As a result, over 2 million people suffer and often die from easily treatable diseases like trachoma and diarrhoea Was made possible thanks to the “flattening of the world”, local entrepreneur access to knowhow and resources made possible by the internet (Google, Wikipedia), mobile access and NGOs.
  46. 46. Definition:  Examples for potential According to Gartner, Big Data isbecoming a metaphor for: applications:1. Increasing volumes of info2. Finding info in previously  - Achieving double bottom lineignored or new data types by analyzing and /or selling3. Hadoop and MapReduce ` the tons of data generated via mobile appsSimilar to the Internet, SaaS, Cloud andCrowdSourcing, Big Data, or “analytics in thecloud” has the potential to become one ofthe biggest disruptors  - With Big Data, financial apps can reach the BoP by analyzingThough Big Data is only beginning, biggest many types of market signalswinners will be pioneers focusing on BoP and data and achieving finer customers segmentations
  47. 47. Corporate SocialSocial Entrepreneur Responsibility Officer“Doing well while doing good” – high growth “Doing well while doing good” – high growth “Doing wellsegmentsdoing good” profitable while – high growth profitablesegments profitable segments Moving Upstream to more lucrative markets: Gradually moving upstream to more lucrativeGradually moving upstream to more lucrative Through a series of sustaining innovations, gradually moving upstream to more lucrative segments eventually segments eventually displacing mainstream segments eventually displacing mainstream displacing mainstream solution at the top of the pyramid.the pyramid solution at the top of the pyramid solution at the top of Blue ocean: often no need to Defense: Necessary defensive compete head to head with measure against threat to incumbents playing in the mainstream business from developed countries disruption from below
  48. 48. Corporate Social Social NGO Responsibility Entrepreneur Officer 1. Inferior performance Look for innovation that are: 2. Cheaper & simpler 3. Technology progression Partner with Social Make sure to package and Good candidates: any Look to target disruptive innovations that are leveraging one of Entrepreneurs & adapt technology in a way innovation the company the key infrastructure technologies: Internet, SaaS, Cloud, innovators targeting that fits developing is addressing at the base Semicon, Mobile, Crowd Sourcing, Open Source and Big Data disruptive innovations countries circumstances of the top of the pyramidPromote innovations and Make sure to package and Good candidates: any models that are self adapt technology in a way innovation the company is sufficient and avoid that fits developing addressing at the base of the injecting “bad aid” countries circumstances top of the pyramid
  49. 49.  Most established companies fail in commercializing disruptive innovations. To succeed, established vendors need to: • Start early and before mainstream Timing business been affected •Will be achieved by addressing the BoP • Dedicate an autonomous organization with Organization size and cost structure appropriate for the opportunity today • Treat it as both a threat and an opportunity Approach in a new and emerging market
  50. 50. Christensen, et al HBR, 12/2006 Christensen, Hart, MIT Sloan Management Review, Fall 2002.
  51. 51. Christensen, et al HBR, 12/2006 Christensen, Hart, MIT Sloan Management Review, Fall 2002.
  52. 52. Thank You Levy.nava@gmail.com

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