design2disrupt summit: joseph pine - destructive recreation
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Design2Disrupt Summit: Joseph Pine - Destructive RecreationTRANSCRIPT
Destructive Recreation
© 2014 Strategic Horizons LLP
B. Joseph Pine II
Strategic Horizons LLP
@joepine
Economies evolve, produce wealth, and remain vital when the process of ever-changing markets, offerings, and enterprises “incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.”
Source: Joseph A. Schumpeter, Capitalism, Socialism, & Democracy, Third Edition (New York: Harper Perennial, 1950), pp. 81-86.
“This process of Creative Destruction is the essential fact about capitalism.”
We used to think. . .
∞ goods and services were enough
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
Destructive Recreation
Transformations
Guide
The Progression of Economic Value
© 2011 Strategic Horizons LLP
Stage
Experiences
Services
Deliver
Make
Goods
Customization
Customization
Customization
Commoditization
Commoditization
CommoditizationCommodities
Extract
We used to think. . .
∞ goods and services were enough
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
Destructive Recreation
The Old Competitive Reality
© 1993 Strategic Horizons LLP
MassProduction
Dynamic Product Change
Stable Product Change
DynamicProcess Change
Stable Process Change
Invention
Develop
Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
The New Competitive Reality
© 1993 Strategic Horizons LLP Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
Dynamic
Stable
Process Change
Stable
OfferingChange
Dynamic
Mass Production
Invention
Develop
Continuous Improvement
Link
Mass Customization
Modularize
Renew
The New Competitive Reality
© 1993 Strategic Horizons LLP Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
Dynamic
Stable
Process Change
Stable
OfferingChange
Dynamic
Mass Production
Invention
Develop
Continuous Improvement
Link
Mass Customization
Modularize
Renew
Transformations
Guide
The Progression of Economic Value
© 2011 Strategic Horizons LLP
Stage
Experiences
Services
Deliver
Make
Goods
Customization
Customization
Customization
Commoditization
Commoditization
CommoditizationCommodities
ExtractIndividuali
zatio
n
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ embrace digital technology
Destructive Recreation
The Known Universe
(Digital
Substances)
(Virtual Places)
(Autonomous Events)
(Real Places)
(Actual Events)
No-Matter
No-Space
No-Time
MatterTime
Space
(Material Substances)
© 2011 Strategic Horizons LLP
(Digital
Substances)
(Virtual Places)
(Autonomous Events)
(Real Places)
(Actual Events)
No-Matter
No-Space
No-Time
MatterTime
Space
(Material Substances)
© 2011 Strategic Horizons LLP
The Multiverse
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ embrace digital technology
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ fuse the real with the virtual
Destructive Recreation
© 2014 Strategic Horizons LLP
(Digital
Substances)
(Virtual Places)
(Autonomous Events)
(Real Places)
(Actual Events)
No-Matter
No-Space
No-Time
MatterTime
Space
(Material Substances)
The Multiverse
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ fuse the real with the virtual
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
∞ the way to manage was to optimize the enterprise
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ fuse the real with the virtual
∞ adopt a way of managing with the intent to vitalize the enterprise
© 2014 Create Advantage, Inc.
Destructive Recreation
To withstand the Schumpeterian gale of creative destruction, the enterprise must be “destructively recreating itself over and over again by innovating within the enterprise at least as much as is going on in its ecosystems. Anything less and the enterprise will eventually get blown over by others moving faster, operating better, and creating greater value.”
Source: Kim C. Korn & B. Joseph Pine II, The Laws of Managing (Indianapolis: Dog Ear Publishing, 2014), p. 47.
Ente
rpris
e Vi
talit
y R
elat
ive
to it
s Ec
osys
tem
s +
FailingThriving
Trailing Creative Destruction
Leading Creative DestructionRegenerative
Trajectory
Degenerative Trajectories
Ambient Level
Enterprise Trajectories
© 2014 Create Advantage, Inc.
-
Source: Kim C. Korn & B. Joseph Pine II, The Laws of Managing (Indianapolis: Dog Ear Publishing, 2014), p. 47.
The Law of Vitality
Only the enterprise that attains
vitality, through its incessant destructive recreation, produces the wealth necessary to survive.
EcosystemsEnterprise
DESTRUCTION
CREATION
DESTRUCTION
CREATION
© 2014 Create Advantage, Inc.
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
∞ the way to manage was to optimize the enterprise
© 2014 Strategic Horizons LLP
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ fuse the real with the virtual
∞ adopt a way of managing with the intent to vitalize the enterprise
© 2014 Create Advantage, Inc.
Destructive Recreation
We used to think. . .
∞ goods and services were enough
∞ we could invent great products & mass produce them for years
∞ materiality conferred advantage
∞ the way to manage was to optimize the enterprise
© 2014 Strategic Horizons LLP
Destructive Recreation
Now we must. . .
∞ stage experiences and guide transformations
∞ mass customize & constantly renew our offerings
∞ fuse the real with the virtual
∞ adopt a way of managing with the intent to vitalize the enterprise
© 2014 Create Advantage, Inc.
Destructive Recreation
© 2014 Strategic Horizons LLP
B. Joseph Pine II
Strategic Horizons LLP
@joepine