This document summarizes a guest lecture about intervening in social systems through business model disruption. The key points made are: 1. Systems are made up of interlocking business models, and systems change when business models change. 2. Disruption involves fundamentally changing business models, such as moving from ownership to sharing, disintermediating processes, unlocking inventory, commoditizing value sources, and changing capital risk sequences. 3. Characteristics of disruptions are that they initially provide lower quality but good enough products at lower margins but higher volumes, and ultimately grow the market by serving non-consumers.

1. Intervening in Social Systems
Guest Lecturer: Assaf Weisz
APS 1015: Social Entrepreneurship
University of Toronto

2. Systems =
sets of interlocking
business models

3. systems change when
business models change

4. DISRUPTION AS
SOCIAL CHANGE

6. Disrup'on:
from
ownership
to
sharing

8. Disrup'on:
disintermedia'on

10. Disrup'on:
unlocking
&
liquifying
inventory

12. Disrup'on:
commodifying
a
source
of
value

14. Disrup'on:
servicing
non-­‐consumers

16. Disrup'on:
changing
the
capital/risk
sequence

18. Disrup'on:
commodi'zing
produc'on

19. “Your
margin
is
my
opportunity”

20. Characteris-cs
of
disrup-ons
Fundamentally
change
the
economics:
• Ini-al
products
are
less
good,
but
good
enough
• Less
profitable
(lower
margins),
but
higher
volume
• Ul-mately
grow
the
market
by
servicing
non-­‐
consumers

21. Sinking
business
models
• Scarcity
• High
margin
human
services
• Informa-onal
imbalance