We're on the precipice of unprecedented value chain disruption. Lower barriers to entry (Internet everywhere, cheap connected hardware, easy to learn programming languages, data driven brand experiences, crowd funding and social validation) multiplied by an African population hungry for connection, for solutions, for invention and we're faced an unknown quantity of inventiveness - the invention economy. This presentation aims to introduce the concept of disruption, build a rationale as to why it's coming, and how to deal with it NOW. Audience: Corporates, large businesses, businesses ruled by legacy culture.

1. "It is almost banal to say so,
yet it needs to be stressed
continually: all is creation, all
is change, all is flux, all is
metamorphosis.”
!
Henry Miller - writer, revolutionary.

2. I AM
SCOTT
@thescott
SCOTT@QUIRK.BIZ

3. Specialist generalist
HEAD OF QUIRK LABS

4. THIS IS A PUBLIC SERVICE
ANNOUNCEMENT…

5. black
1942 PSA “Five Inch Bathers”
youtube.com/watch?v=E4j9QGlCNuA

6. DISRUPTIVE INNOVATION
DON’T BE A VICTIM!

7. A disruptive innovation is an innovation
that helps create
a
new
market
and
value
network, and eventually
disrupts
an
existing
market
and
value
network (over a few years
or decades), displacing
an
earlier
technology.

8. Successful companies (incumbents) can put
too much emphasis on customers' current
needs and fail to adopt new technology or
business models that will meet customers'
unstated or future needs; such companies
will eventually fall behind. (And spend the
years playing catch-up e.g. Blackberry)

9. Quality
Minimum
customer
need
Sustaining innovations
Incumbents treat innovation as a series of incremental
improvements. They focus on improving the quality of their
premium products to sustain their current business model
Resource: http://bit.ly/disruptionNYT
“The
leaked
New
York
Times
innovation
report
is
one
of
the
key
documents
of
this
media
age.”
Nieman
Journalism
Lab.

10. Disruptive
innovations
Quality
Minimum
customer
need
Sustaining innovations
Disruptors introduce new products that, at first, do not
seem like a threat. Their products are cheaper, with
poor quality — to begin with.
Resource: http://bit.ly/disruptionNYT

11. Quality
Minimum
customer
need
Over time, disruptors improve their product, usually by
adapting a new technology. The flashpoint comes when
their products become “good enough” for most
customers. They are now poised to grow by taking
market share from incumbents.
Resource: http://bit.ly/disruptionNYT

12. It’s not about keeping up
technologically, but rather
the dilemma:
!
STEER RESOURCES TO
TARGET NEW (RISKIER)
VALUE NETWORKS
OR
BUSINESS (Disruptive)
AS USUAL
(Sustaining)

13. WHY is it important now?

14. A tipping point of invention?
(At the expense of your value chains)

15. THE
CONSUMER
MOBILITY
STACK
OUR
BEHAVIOUR
THE EXPERIENCE
SOFTWARE
HARDWARE
CONNECTIVITY

16. CONNECTIVITY
FASTER
CHEAPER
EVERYWHERE

17. LTE-A
Downloading 800Mb in 6s. A full length Blu-ray
movie would take approximately 3mins to
FASTER
CHEAPER
download.
EVERYWHERE
http://bit.ly/1lvPm2b
- “African Undersea Cables", Steve Song, Many Possibilities, July 2009

18. HARDWARE
CONNECTIVITY
MORE
ACCESSIBLE
MORE
PERVASIVE

19. R450
Light: $7
Motion: $45
MORE
ACCESSIBLE
NFC Stickers R2ea.
MORE
PERVASIVE
Gesture
Proximity
Gyro
Accelerometer
Geomagnetic
Temp / Humidity
Barometer
Hall
Light
SAMSUNG
GALAXY S4

20. R450
Light: $7
Motion: $45
MORE
ACCESSIBLE
NFC Stickers R2ea.
MORE
PERVASIVE
Gesture
Proximity
Gyro
Accelerometer
Geomagnetic
Temp / Humidity
Barometer
Hall
Light
SAMSUNG
GALAXY S4
ESTIMOTE NEARABLES
•Accelerometer, temp, GPS
•$99 for 10 (incl API access)

21. MAKING
STUFF IS GETTING
#EASIER
SOFTWARE
HARDWARE
CONNECTIVITY

22. “Building on breakthroughs in WolframAlpha, the
Wolfram Language lets you mix ordinary free-form
natural language into your code.”
“Start using the Wolfram Language with no
programming knowledge”

23. “HYPER-RELEVANCY”
THE EXPERIENCE
SOFTWARE
HARDWARE
CONNECTIVITY

24. RELEVANT,
DATA DRIVEN
EXPERIENCES
EXPERIENCE
“I expect a consistently
relevant brand experience”
CUSTOMER
BRAND
“We need a single view of
each customer”
DATA
#BigData
#BuzzwordOfTheYear
#BigDataIsTheNewMobile

25. THE PRODUCTIVE PHASE
A new era of productivity enabled
by technology, driven by a society
that no longer sees the Internet as
a mysterious, intangible, exclusive,
and scary "thing".
OUR
BEHAVIOUR
THE EXPERIENCE
SOFTWARE
HARDWARE
CONNECTIVITY

26. TAMING THE INTERNET
Harnessing the POWER of the Internet
for personal gain and social benefit.

27. "IF I take a photo on
Instagram THEN save
the photo to dropbox"

28. ??

29. Crowd funding

30. “Kiva lets individuals lend
as little as $25 to help
create opportunity around
the world.”
•1,217,419 Kiva lenders
•$604,394,200 in loans
•98.79% repayment rate
Crowd funding

31. Crowd funding

32. Maker Communities

33. Never before has is
happen. 100x
been so easy to
make an idea

34. THEN vS Now
$$$$$ $
The Next Disruption Where Digital Will Lead Us
http://youtu.be/yJ-L2IW5DaY
10x
the innovators
1/10th
the cost
100x
more ideas
turned into reality

35. NOW x AFRICA
$
X
the innovators
1/10th
the cost
X
more ideas
turned into reality

36. NOW x AFRICA
$
X
Unprecedented
the innovators
fragmentation and
creation of new value.
1/10th
the cost
X
more ideas
turned into reality

37. WHO’S BEEN DISRUPTED?

38. Britannica vs. ?

39. Betamax vs. VHS

40. iPhone vs. many value chains
Steve Balmer Microsoft CEO

41. iPhone vs. many value chains

42. GEARING FOR THE INVENTION ECONOMY

43. DISCLAIMER:
None of the following is very easy.

44. 1. DIGITAL TRANSFORMATION
Re-align your company’s
TOTAL CUSTOMER
EXPERIENCE LIFECYCLE
with the expectations of
the connected consumer.
THE DIGITAL BUSINESS

45. 1. DIGITAL TRANSFORMATION
THE ENABLERS
Openness
Collaboration
Leadership
Resources
THE INHIBITORS
Legacy - Systems & mindset
Internal politics & silo thinking
Egos & Self preservation
Lack of understanding & expertise
No “Customer Experience
Officer”

46. 2. EMBRACE the unknown NOW (RaTHER THAN ignoring it)
80 20 10
Sustaining business
as usual
Developing and
guiding new ideas
that come from the
10%
Trying new things
Start small / Look for
ideas internally
!
PRACTICE AGILE
Hypothesise
Prototype (MVP)
Test
Evaluate against data

47. 3. UNDERSTAND YOUR PURPOSE* THAT GUIDES
* “Visionary over commercial”
•Allows for focus and flexibility
•Use it to look for opportunity
outside of your current product or
service offering
•Use it to identify potential
disruptor threats
OUR PURPOSE

48. 3. UNDERSTAND YOUR PURPOSE THAT GUIDES
Amazon
To be Earth’s most
customer-centric
company, where
customers can find
and discover
anything they might
want to buy online,
and endeavours to
offer its customers the
lowest possible prices
Google
To organise the
world’s
information and
make it universally
accessible and
useful.
Nike
To bring inspiration
and innovation to
every athlete* in
the world.
*”If you have a
body, you are an
athlete.”
Facebook
To give people the
power to share
and make the
world more open
and connected.

49. 4. START TAKING YOUR DATA SERIOUSLY

50. 4. START TAKING YOUR DATA SERIOUSLY
COLLECT
•Active (data submission)
•Passive (sensors, tracking)
SHEPHERD
Look for aimlessly
wandering pockets of
data that is collected
and not used.
A DATA FRAMEWORK THAT
RUNS ACROSS THE BUSINESS

51. 4. START TAKING YOUR DATA SERIOUSLY
BE A PLATFORM
Depending on the data, consider opening
it up, enabling others to build (much
better) experiences via your API. *
* The developer’s experience is an experience worth
focusing on too.

52. YOU MAY BE DISRUPTED BECAUSE…
•The barriers to entry for competition are lower than ever
before
•Your competitor set isn’t what it was yesterday
•Your customer experience sucks, and empowered people (the
makers) create their own solutions (and value chains)
•You’re not flexible, adaptable, agile, open
•Your product/service strategy is based on the needs of your
shareholders, not the needs of your customers.

53. Thanks
@thescott SCOTT@QUIRK.BIZ

54. Digital Disruption 101 Prescription
•The Innovators Dilemma by Clayton M. Christensen - http://www.amazon.com/The-
Innovators-Dilemma-Revolutionary-Business/dp/0062060244
•The Capitalist’s Dilemma by Clayton M. Christensen and Derek van Bever - http://hbr.org/
2014/06/the-capitalists-dilemma/ar/1
•The Next Disruption Where Digital Will Lead Us James McQuivey - http://youtu.be/yJ-L2IW5DaY
•Digital Isn't Software, It's a Mindset Aaron Dignan - http://99u.com/videos/23495/aaron-dignan-
digital-isnt-software-its-a-mindset
•The Responsive OS Undercurrent - http://www.undercurrent.com/responsive-os + Responsive
OS canvas: http://responsive.org/2014/05/introducing-the-responsive-os-canvas/
•On the Nature of Digital Transformation: 10 Observations - https://medium.com/business-startup-
development-and-more/on-the-nature-of-digital-transformation-10-
observations-9a889aa170d1
•New York Times Innovation Report - http://bit.ly/disruptionNYT
•Disruption Revolution - David Pasiak - https://www.disruptrev.com