disruptive innovation
TRANSCRIPT
© 2008 Deloitte Touche Tohmatsu
Disruptive InnovationHow to find the small bets that lead to big wins…
© 2008 Deloitte Touche Tohmatsu© 2008 Deloitte Touche Tohmatsu
Housekeeping
• Turn phones on• Stick them on silent• Tweet the interesting stuff• Use #ACBC11• Refer to me as @rexster
• Pay attention as Disruption Can Kill You
2 GIN | 2009 Live Meeting
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What do most people think about innovation?
Where it Started
4GIN | 2009 Live Meeting
Disruptive Innovation
"Generally, disruptive innovations were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream."
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Angioplasty vs. bypass surgery
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Sources: Thomas Thom, National Heart, Lung and Blood Institute; Gautam Gowrisankaran, Washington University in St. Louis; Salim Yusuf, McMaster University, The Interheart Study; as reported in National Geographic, February 2007
BalloonAngioplasty
BypassSurgery
Heart attackdeaths
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1980 1985 1990 1995 2000 2004
Inci
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pop
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New market disruption: No more heartache
Effectiveness
Time
CostInvasivenessRisk
Time
Cardiac surgery
Angioplasty
Differentbasis ofcompetition
Overshoot
Foothold
Upmarket march
Basis of competition
Disruption
Can you spot disruption?
Give me some examples from history or today’s newspaper
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Good Enough … not necessarily better, but different
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The web is dead? Long live the web
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Apple – Lessons in Disruption
The iPod + iTunes + Content disrupts Music
The iPod Touch sustains innovation and enables
The iPhone + Developer Crowd which disrupts the dumb phone market and enables
The iPad which will disrupt the PC/Mac market
Adds movie content and kill video shops while we are at it
ClomosodaCloud + Mobile + Social + Data
Major trends in a word
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The Crowd
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24 Sustaining Innovation in Large Organisations
© 2007 Deloitte Touche Tohmatsu Ltd
Innovation happens at Intersections - eMue
Industrial Designer
Former Chief Security Officerof Westpac
Mutual Authentication Solution that addresses Identity Theft &
Fraud
25 Sustaining Innovation in Large Organisations
© 2007 Deloitte Touche Tohmatsu Ltd
Prototyping – Putting these components….
26 Sustaining Innovation in Large Organisations
© 2007 Deloitte Touche Tohmatsu Ltd
Into this….
This….
27 Ideas at Work – Minimising the cost of evaluation & testing
© 2007 Deloitte Touche Tohmatsu
Happy Days
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How fast does can disruption happen?
Performance
Time
Process technologies
Mechanicaltechnologies
GeneticsNanotechRobotics
Three points to remember
Think Big
Bet Small
Be Disruptive
Takeouts
Have your strategic radar on for both risk and opportunities
Technology doesn’t standstill, it goes on an upward march
Get in early and prototype, be good enough
You don’t need to bet the farm but you have to drive upward
It is the business model + the tech
Who is the Home Brew Computer Club in your industry?
Don’t apply business processes of today when playing in the Innovation space