digital disruption: from zero to sixty
DESCRIPTION
Neel Banerjee of Urban Airship and Gene Ehrbar of ISITE Design discuss strategy and tips for making digital disruption a part of business large and small.TRANSCRIPT
A STRATEGIC BRIEFING
Digital Disruption from Zero to SixtyWith Neel Banerjee of Urban AirshipAnd Gene Ehrbar of ISITE Design
WENDESDAY, MARCH 19th AT 2PM EST.
In this briefing, you will learn:
1. What is Digital Disruption?2. Why are customer-focused ideation techniques
critical for driving new product development?3. How can enterprise organizations foster
collaborative innovation teams across the company?
Hello and Welcome!
Our flight plan for today:
• A Brief History of Innovation• Digital Disruption: Phenomenon, Practice, Mission• Q&A
Agenda
What is Digital Disruption?
A Brief History of Innovation
5
6
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(per Clayton Christensen, 1995)
Innovation that creates a new market or value network, disrupting an existing market, and displacing an earlier technology.
Disruptive Innovation
9
(per James McQuivey, 2013)
Innovation in an existing market that uses digital tools, methods, and infrastructure to fundamentally alter the delivery of a product or service, undercutting incumbent companies in the process.
Digital Disruption
Why has Digital Disruption emerged?
• Free/cheap digital tools• Radically reduced infrastructure costs• Overall reduced cost to engage customer
Net result: small, new upstarts can compete with established market leaders quickly.
Digital Disruption: As a Phenomenon
Image: James McQuivey, “Digital Disruption”
Return on Innovation
Digital Disruption leverages efficiencies to magnify the impact of innovation efforts.
Then vs. NowDisruptive Innovation Digital Disruption
Product-Centric Customer-Centric
Expensive, risky, slow-to-market
Cheap, low-risk, fast-to-market/fail
Take hold in niche markets first Can impact mainstream quickly
Long product-development cycles
Rapid ideation, iteration, delivery, and optimization
Fax machineMobile phoneEmail
iOS app marketSharing economy (Uber, AirBnB)Crowdfunding
How can you achieve digital disruption and harness its power?
Digital Disruption: As a Practice
• “Build stuff customers actually want.”• “Innovate the Adjacent Possible.”• “Build. Test. Learn.”• “Avoid holding innovation efforts to executional
standards.”
Process:
• Start with market problem / user problem• Use real customers — don’t make them up• Create personas from real customers, and
determine their motivations, passions, needs, wants
• Get out of the office
Start with the Customer
• For engineers and product designers, it can be difficult to separate the problem from the solution.
• By following the Customer->Benefit path, we avoid settling on solutions prematurely
Determine Benefit
• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”
• Not necessarily linear, or obvious• Expand step by step through adjacent
possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product
The “Adjacent Possible”
• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”
• Not necessarily linear, or obvious• Expand step by step through adjacent
possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product
The “Adjacent Possible”
Synthesis: The Product Vision Statement
“Fitbit for cars”
• Commodity OBD-reader hardware
• Commodity smartphones• Disruptive synthesis
Example: Dash
Revolutionizing Transit Payments
• First system-wide mobile pay-and-use
• Leveraging commodity smartphones
• Collaborative design/build process
Example: Globesherpa
How can you convince your organization to try this?
• Larger organizations naturally more risk-averse, wary of premature sharing of results with customers.
• On the contrary, iteration & rapid prototyping can be seen as risk mitigation techniques — lowered initial cost, faster results, shorter path to validation.
• Keep teams small• Cross organizational boundaries• Resist holding innovation efforts to executional
standards.• Disrupt or be disrupted
Digital Disruption: As a Mission
• Digital Disruption is happening right now, in every industry
• The competitive landscape has been completely reshaped by the emergence of Digital Disruption
• Companies of all types can use disruptive techniques to improve their customer experience
• Lean Startup and Design Thinking methodologies can help inform disruptive efforts
• Becoming a disruptive company requires a deliberate effort, that is likely outside of the usual scope of operations for enterprise companies
Summing up…
Q&A Time!
Download a free ideation template at http://isitedesign.com/disrupt
Thank you!
Gene Ehrbar@pdxgene
Neel Banerjee@nbanerjehttp://urbanairship.com