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Industry, Disruption, and Opportunity

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Innovation can disrupt, but disruption also catalyzes innovation. This framework of value and opportunity shows a pattern of how it works.

Published in: Leadership & Management
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Industry, Disruption, and Opportunity

  1. 1. Industry, Disruption, and Opportunity A Pattern
  2. 2. VALUE The Who Cares Test yields a simple picture of Demand that accounts for whether the “next” thing made or offered has reasonably predictable relevance. The primary relevance should be to Preference. Preference drives demand. Three primary flavors of preference are for capability, convenience and privilege. Privilege Demand (value) Convenience Demand (value) Capability Demand (value) TO MY ADVANTAGE THE WAY I WANT CAN DO ©2018 Malcolm Ryder / Archestra Research
  3. 3. Industry Industry is a system of developing and sharing resources, that is done to satisfy demand. Production logic and distribution logic exist independently but are calibrated and integrated to rationally sustain a scale of delivery. Privilege Development of Resource Delivery Scale Industry (production) Market (distribution) Demand (value) Convenience Demand (value) Capability Demand (value) ©2018 Malcolm Ryder / Archestra Research
  4. 4. Disruption: invalidates earlier industry assumptions about causes and effects in the system. Resource development and sharing takes on the form of collaborative production. The logic of the collaboration follows assumptions about economics and about scale (expected deliverable production volume). Scale conforms to the requirement for efficiently meeting a value proposition. More efficiency increases capacity to deliver re: the value proposition (product delivery – good enough, soon enough, affordably enough). DEMAND Disruption can occur in several ways: • Something is removed • Something is inserted • Something is replaced Disruption causes the need to reconfigure the system. here… &/or here… &/or here… PRODUCTION DISTRIBUTION ©2018MalcolmRyder/ArchestraResearch
  5. 5. Innovation changes the formula for realizing value Innovation is always one of the following: an unprecedented application of a means or mode within an established context, in order to generate the opportunity or actuality of a recognized type of value. Value propositions reflect the priorities of a user, user type, or user community. An industrial disruption occurs when a value proposition can be addressed with a new logic of production scale. An innovation makes the new logic possible, as well as valid, with adequate economies of scale. An innovation may also shift focus from one existing kind of value to a different existing kind or even to a potentially new kind. ©2018 Malcolm Ryder / Archestra Research
  6. 6. Resource development and sharing takes on the form of collaborative production The logic of the collaboration follows assumptions about economics and about scale Scale conforms to the idea of efficiency in meeting a value proposition’s level of demand Value propositions reflect the priorities of a user, user type, or user community An industrial disruption occurs when a value proposition can be addressed with a new logic of production scale An innovation makes the New Logic possible and valid with adequate economies of scale A value proposition may be imaginative, speculative, latent, or dormant when compared to acknowledged logics of production A new viable production system not only changes expectations about prior demand but fosters newly different kinds of demand ©2018 Malcolm Ryder / Archestra Research
  7. 7. Opportunity from Disruption Value propositions, readily seen as targets, are also demand-side opportunities to generate benefit. Perceived benefit routinely appears in at least four different ways related to current expectations. A value proposition, representing a desired benefit, anticipates availability of the benefit which, when compared to acknowledged logics of production, is characterized as imaginative, speculative, latent, or dormant. Corresponding to that, provider-side opportunity to meet demand may come in different forms and strengths. Opportunity also emerges when new industrial means result in new property (output) that becomes a resource (input) for another level of industrial creativity. ©2018 Malcolm Ryder / Archestra Research
  8. 8. Current expectation of benefit availability Problem/barrier (perceived limitation ) User (persona) User Type (role) Community Of Users (activity) Realized Difference (value) Imaginative (future) not known to exist yet Become like (can be) Has Specialty Advantage privilege Speculative (exotic) feasible but not within reach Have access to (can get) Has Availability Connection (channel) convenience Latent (bound) usable but not feasible Have choice to (can have) Gets On-demand Sharing (service) utility dormant (unsupported) not yet usable Be able to (can do) Can Self-help Facility (resource) ease Value Propositions as Types of Benefit Priorities for a: ©2018MalcolmRyder/ArchestraResearch
  9. 9. Current expectation of benefit availability Problem/barrier (perceived limitation ) Future state Developed as Delivered as Realized Difference (value) Imaginative (future) not known to exist yet Viability Functionality Invention privilege Speculative (exotic) feasible but not within reach Access Interface (point of contact) Channel convenience Latent (bound) usable but not feasible Incorporation / integration Built-in Service utility dormant (unsupported) not yet usable Adaptation Programmed Option ease Solving for Value Solution Objectives: ©2018MalcolmRyder/ArchestraResearch
  10. 10. Creation from Disruption The idea that disruption is “creative” is an abbreviation of the thought that creativity operates on conditions that do not already have their final form. When disruption un-does existing form, the new current conditions are preconditions for creation. This also means that an innovation of one type can be the basis of another type of innovation, either as a component or as a partner. As creativity directs interactions, approaches exploiting innovations generate new types of value and/or more value. ©2018 Malcolm Ryder / Archestra Research
  11. 11. Benefit (as currently expected) Enable User (personality) Targeted Enabled New Realized Difference (value) imaginative Become like (can be) Be visible Rideshare driver Work for yourself privilege speculative Have access to (can get) Discover local demand Apps Best match convenience latent Have choice to (can have) Know location GPS Leverage proximity utility dormant Be able to (can do) Get online anywhere Wireless Mobility ease Opportunity example: Self-employment Solution Characteristics: ©2018MalcolmRyder/ArchestraResearch
  12. 12. Archestra notebooks compile and organize decades of in-the-field and ongoing empirical findings. All presented findings are derived exclusively from original research. Archestra notebooks carry no prescriptive warranty. As ongoing research, all notebooks are subject to change at any time. ©2018 Malcolm Ryder / Archestra Research www.archestra.com mryder@archestra.com Archestra research is done from the perspective of strategy and architecture. With all subject matter and topics, the purpose of the notes is analytic, primarily to: * explore, expose and model why things are included, excluded, or can happen in given ways and/or to certain effects. * comment on, and navigate between, motives and potentials that predetermine Decisions about, and shapings of, the observed activity.

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