The document discusses disruptive innovation and how established companies try to stop it. It states that companies will try to pass laws to protect their business and raise costs for newcomers. However, this is only a temporary fix, and the only sure way to compete is to offer more value at a lower price to new customer segments. It also discusses how the internet has enabled more disruptive innovation opportunities but many fail. Successful disruption often comes from starting new companies, though large companies can also drive disruption through both size and innovative approaches.

1. Holding Back The Tide
How do you stop disruptive
innovation?
America has the best system of
government money can buy, so the first
WWW.SALESLABDC.COM
step is to buy some laws.
More laws help the entrenched players, HIGH RETURN LEADERSHIP
while raising the cost of doing
business. It’s a holding action, trying to
go back to “the good old days.”
Undertakers, retailers, telephone
companies, computer companies all
tried to use the courts and the
legislature to stamp out disruptive
innovation.
It’s a temporary fix at best. Harnessing
The only sure fire way to compete is to
offer more value at a lower price to a
new segment of the audience. Get
Disruptive
below the disruptor and disrupt them.
A lot of perks and processes must go
Innovation
out the window when you reorganize,
and you have much more risk than
when winding down an industry leader. Managing the New Normal
Windows of opportunity shrink each
generation. You must execute faster
Makers by Cory Doctorow shows how
shrinking cycle times reshape business. DICKDAVIES@SALESLABDC.COM
Completing today’s presentation
Please comment with the best thing you
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2. The Opportunity their own radio, even if they did have Harnessing Disruptive Innovation
to go outside to get a signal.
I met Clay Christensen when he was The major enabler of disruptive
doing three presentations about When solid state television was innovation is the Internet. Different
Disruptive Innovation at the American introduced, they had a hard time social groups are being tried, more
Enterprise Institute in Washington DC finding distribution channels, since information is available, we have
in 2009. Turned me into the proverbial replacing tubes was the most lucrative unlimited resources at our disposal.
six year-old with a hammer as I am part of a television sale. Luckily, Target Yet most disruptive opportunities fail.
seeing disruptive innovation explaining wanted to sell the new maintenance-
both existing situations and also free products since they didn’t have a Many writers state that the best chance
providing new opportunities to gain technical service staff to support a for success is to start with a new
competitive advantage. television repair business. The company. That would be unfortunate.
television series American Dreams Intel, Seagate, Perkin Elmer, McCaw,
Disruptive Innovation is a powerful
chronicled the end of the tube and Google are all billion dollar
force that can be harnessed for rapid
television service business. operations that have used both their
growth.
Disruptive innovation has already had a size and disruptive innovation to create
The Basics new market dominance.
dominant role in reshaping the
Disruptive Innovation occurs when a automotive industry, agriculture, steel, It starts at the top. What is the role of
less accomplished, less feature filled travel, computer hardware and management?
offering creates a new market under- software, entertainment, healthcare,
segment. housing, fashion, almost every The Aztecs were sure that sacrificing
industry. virgins made the sun come up.
Established competitors are locked into Command and control management
a path of increasing scope creep to keep Disruptive Innovation Comes From practices may be throttling as many
their existing customers and cannot organizations as they help.
Customers
launch a simultaneous minimization
effort for cost, features, support, sales, Doers Have you ever managed an open source
and distribution. project? Do one for your career.
Economy
Typically an existing producer will not Does your current internal reporting
Technology cause major improvements at least six
allow an internal project to disrupt an
existing market. They are too focused Manufacturing times a year? Then don’t apply it to a
on exploiting the top end of their new operation. They need better.
Distribution
market. Beware the weight of an organizational
Financing
One of the earliest examples was chart. Let’s not have the sixth graders
Christensen and his brother pooling Marketing bullying the kindergartners. They might
their money to buy a Japanese Sales control your pension.
transistor radio. It could not compete
with the tube powered console in their Service
parent’s living room, but the boys had Tribes