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The Paradox of Disruption - CMA B2B Innovation Conference
The document explores the concepts of disruptive innovation and its necessity for organizations to evolve in a rapidly changing environment. It highlights the importance of balancing sustaining and disruptive innovations while encouraging a culture of adaptability and learning. Insights from thought leaders like Peter Drucker emphasize the need for companies to focus on marketing and innovation, and to reconsider their business processes and structures to better meet customer needs.
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The Paradox of Disruption - CMA B2B Innovation Conference
- 1. ! Disruptive Innovation: The Paradox of Disruption
- 2. ! POWER ANDCONTROL THE WHOLE HISTORY OF ORGANIZATION AND MANAGEMENT THEORY IS BASED ON THE IDEA THAT IT IS POSSIBLE TO ORGANIZE, PREDICT, AND CONTROL.
- 3. ! DIALECTICAL OPPOSITES Innovate Avoid Mistakes Think Long Term Deliver Results Now Cut Costs Increase Moral Reduce Staff Improve Teamwork Be Flexible Respect the Rules Collaborate Compete Decentralize Retain Control Maintain Focus Be Opportunistic Low Costs High Quality
- 4. –Ben Horowitz “Bydefinition they are not obvious. In fact, they seem insane. If they didn’t seem insane at the time, they wouldn’t be breakthroughs” Source: http://ilovefaygoslushies.deviantart.com/art/Insane-Base-415796210
- 5. PETER DRUCKER, “BECAUSETHE PURPOSE OF BUSINESS IS TO CREATE A CUSTOMER, THE BUSINESS ENTERPRISE HAS TWO – AND ONLY TWO – BASIC FUNCTIONS: MARKETING AND INNOVATION. MARKETING AND INNOVATION PRODUCE RESULTS; ALL THE REST ARE COSTS.”
- 6. "What new anddifferent things do we have to do, and when?" –Peter Drucker
- 7. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption Disruptive Innovation 80% Sustaining Innovation Disruptive Innovation 20% New Markets /! New Revenue! Optimizing ! Existing Markets / ! Revenue Streams! New Markets /! New Revenue!
- 8. ! “SO ASKYOURSELF THREE QUESTIONS.” ! WHAT KIND OF INNOVATION DO I WANT? ! HOW MUCH INNOVATION DO I WANT? ! WHEN DO I WANT IT?
- 9. “FINANCIAL MIS-DIRECTION” Projectedcash stream from investing in Innovation & Marketing More likely cash stream resulting from doing nothing DCF and NPV methodologies implicitly make this comparison Companies should be making this comparison B Assumed cash stream resulting from doing nothing A C
- 10. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! ELASTIC ! • FLUIDITY TO ADAPT AND RESPOND http://www.bluefinsolutions.com/Bluefin/media/Bluefin/PDFS/Bluefin-Solutions-Elastic-Innovation-Index-2014-Global-top-50-most-innovative-companies-(2).pdf! ! • ABILITY TO CREATE DEMAND
- 11. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ELASTIC Adaptive Cloud Infrastructure and Device Centric Developer-centric / Computational Ideas Economy Radical Adjacencies Social Communications Ecosystems Mass Differentiation Creative Independent Talent Continuous Strategy Multiple Options Management http://www.bluefinsolutions.com/Bluefin/media/Bluefin/PDFS/Bluefin-Solutions-Elastic-Innovation-Index-2014-Global-top-50-most-innovative-companies-(2).pdf!
- 12. ARIE DE GEUS, “RESILIENT, LONG-LIVED COMPANIES ARE THOSE THAT EXHIBIT CERTAIN OF THE BEHAVIOURS AND CHARACTERISTICS OF LIVING ENTITIES.” ✤ Strong sense of community and collective identity around a set of common values ✤ Community where all members know that they will be supported in their endeavors to achieve their own goals – as well as the global goals of the community ✤ Openness to the outside world, tolerance for the entry of new individuals and ideas – in essence a manifest ability to learn and adapt to new circumstances
- 13. A “ THOSETHAT EXHIBIT CERTAIN OF THE BEHAVIOURS AND CHARACTERISTICS OF LIVING ENTITIES ! “INNOVATE OR DIE”
- 14. ! EXPERIENTIAL WORKSHOPSWHERE YOU CAN PRACTICE “DOING DIFFERENT”
- 15. ! THE LEARNING& INNOVATION LOOP Directional Knowledge Identity & Motivation Conceptual Knowledge Understanding & Organization Experiential Knowledge Skills & Awareness Source: Knowledge System (Artistry Unleashed - Hilary Austen) Mastery: Applying Developed Knowledge Recognition, Effectiveness, Expertise, Purpose, Focus Guides Guides Informs Informs Originality: Generating New Knowledge Perception, Creativity, Innovation, Flexibility, Openness
- 16. ! WE HAVEALREADY MOVED FROM MANAGEMENT TO LEADERSHIP – AND NOW WE’RE GOING BEYOND LEADERSHIP TO INSPIRATION… ! LEADERS MUST HELP PEOPLE ACCESS THEIR SOURCES OF INSPIRATION, INTUITION AND IMAGINATION… ! TO FACILITATE SO THAT MY TEAM CAN SENSE AND SEIZE EMERGING OPPORTUNITIES AS THEY ARISE IN TODAY’S FAST PACED ENVIRONMENT
- 17. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption Drucker 7-Sources Christensen Disruption The Unexpected Success Failure Outside Event (Eureka Moment !) Incongruity in Reality Asymmetry in Experience Innovation on Process Need Bridging a Gap Change in Market Structure Demographics Changes in Perception Society Bites Back New Knowledge What: 1) Simpler, Cheaper, & Good Enough ! 2) Micro-Market Underserved & Uncontested ! How: 1) Job-to-be-Done 2) Combinatory 3) Adjacencies 4) Trade-offs !
- 18. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption Christensen Horowitz
- 19. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Customers Refusing Soon to be Non-‐Customers Non-‐Customers Unexplored Non-‐Customers
- 20. TOGETHER OBptEim OizPaEtNionA N D SLuISsTtaEinNing Breakthrough Disruption Optimize Differentiate Value Prop. ! Customers Refusing Soon to be Non-‐Customers Non-‐Customers Unexplored Non-‐Customers 20% 80% Problems, Needs, & Use Cases Degrees of Doing Things Differently
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- 22. PROUST ““THE REALACT OF DISCOVERY CONSISTS NOT IN FINDING NEW LANDS, BUT IN SEEING WITH NEW EYES” ! WHAT BUSINESS ARE WE IN AND IS IT THE RIGHT BUSINESS?! ! CAN WE CREATE FUNDAMENTALLY NEW PRODUCTS AND SERVICES?! ! CAN WE REDEFINE THE BOUNDARIES BETWEEN DIFFERENT INDUSTRIES AND SERVICES SO THAT NEW NICHES EMERGE? ! ! CAN WE STRUCTURE OUR ORGANIZATION AROUND BUSINESS PROCESSES THAT REFLECT A CUSTOMER VIEWPOINT RATHER THAN THE INFLUENCE OF TRADITIONAL DEPARTMENTAL STRUCTURES?! ! CAN WE REDESIGN BUSINESS PROCESSES IN A WAY THAT WILL INCREASE THE QUALITY OF PRODUCTION AND REDUCE COSTS?! ! CAN WE REPLACE OUR ORGANIZATIONAL HIERARCHY WITH A NETWORK OF SELF-ARRANGED TEAMS?!
- 23. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption Sustaining Innovation Problem is Understood! Existing Market (red ocean) Improves Performance Lowers Cost ! Incremental Change! Customer is Known! Market is Predictable! Traditional Business Model! Talk to Mainstream! Market Research! Disruptive Innovation Problem is Undefined New Market (blue ocean) Innovation is a dramatic game changer Customer doesn’t know Market is Unpredictable Traditional Models Fail Talk to Early Adopter Customer Development Gaps/Biases Overshoot in Sustaining Innovation ! Status Quo / Extrapolated Financial Forecasts ! Understated / Invisible Threats ! Commitment to Sunk Costs ! Lack of empathy
- 24. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption More Options & Possibilities Order Chaos More Insights & Patterns
- 25. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption Launch180: GTA Incubator/Accelerator
- 26. ! INNOVATION CHALLENGES ! FOOD AND NUTRITION BEHAVIOUR ! SENIORS AGING AT HOME ! AFFORDABLE / SOCIAL HOUSING ! EARLY CHILDHOOD DEVELOPMENT ! EXPERIENTIAL EDUCATION ! INNOVATION & INCUBATION ! HACKING TRADITIONAL MEDIA ! LEADERSHIP & CULTURE
- 27. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers SOLUTION UNINTENDED CONSEQUENCE
- 28. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers SPECIALIST GENERALIST
- 29. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers EXPERT CROWD
- 30. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers FINITE INFINITE
- 31. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers REALITY PERCEPTION
- 32. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers FIXED CAPITAL HUMAN CAPITAL
- 33. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers INFORMATION KNOWLEDGE
- 34. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers PLANNED SURPRISE
- 35. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers COMPLICATE COMPLEX
- 36. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers BIG DATA STORIES EMPATHY
- 37. TOGETHER OptBimE iOzaPtEioNnA N DS uLsItSaTinEiNng Breakthrough Disruption ! Soon to be Refusing Non-‐Customers Unexplored Non-‐Customers ARROGANCE EXPERIMENTS
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