Two elements are required for disruption: 1) a business model change, and 2) elements of innovation. The document discusses how disruption has occurred in different industries like electronics, music, and transportation. It provides questions to assess potential disruption for a company, including asking what kind of business the company is really in, what its advantages are, what is enabling disruptors, how the disruptor could erode the business, and how long the company has until disruption occurs. Examples provided include the disruption of trains by planes, and Blockbuster by streaming services.

3. Disruption
requires
elementsTwo

4. Innovation
FirstElement:

5. Business
Model Change
SecondElement:

8. Electronics business
started in the

12. $0
$280
$560
$840
$1,120
$1,400
2006 2007 2008 2009 2010
Revenue in Millions
iTunes

13. devices are
Meaningless
Without content,

14. devices are
Meaningless
Without content,

15. is now in the
businessContent

16. knows this

19. How to start thinking
Disruptively

20. How to start thinking
Disruptively

21. 1. What kind of business are you in?
2. What are the advantages of your
business?
3. What is working for the disrupter and
what are their strengths?
4. How can a disrupter start eroding your
business?
5. How long do you have until the disrupter
completely erodes your business?
5 Things to Remember

22. An Old School Example
1. What kind of business are you in?
We are both in the people and cargo
transportation business
Legacy Business Disrupter

23. What is our strength?
2. What are the advantages of your business?
Train costs are much lower compared to
airfare for people and cargo
Legacy Business Disrupter

24. What is working for them?
3. What is working for the disrupter and
what are their strengths?
Planes can move cargo and people way
faster than rail
Legacy Business Disrupter

25. How can they take our business?
4. How can a disrupter start eroding your
business?
Planes can specialize or change their
pricing model for passengers and cargo
Legacy Business Disrupter

26. How long do we have?
5. How long do you have until the disrupter
completely erode your business?
Trains have the advantage here. Planes
were invented in 1900.
Legacy Business Disrupter

29. Blockbuster
thought they were
in the Movie
Rental business

41. in now?
What Kind of
Businessis Blockbuster

43. 1. What kind of business are you in?
2. What are the advantages of your
business?
3. What is working for the disrupter and
what are their strengths?
4. How can a disrupter start eroding your
business?
5. How long do you have until the disrupter
completely erodes your business?
5 Things to Remember

44. QUESTIONS
?