Download - Disruptive Innovation
Disruptionrequires
elements2Two
InnovationFirst Element:
BusinessModel Change
Second Element:
Electronics businessstarted in the
$0
$280
$560
$840
$1,120
$1,400
2006 2007 2008 2009 2010
Revenue in Millions
iTunes
devices areMeaningless
Without content,
devices are
MeaninglessWithout content,
is now in the businessContent
knows this
How to start thinkingDisruptively
How to start thinking
Disruptively
1. What kind of business are you in?
2. What are the advantages of your business?
3. What is working for the disrupter and what are their strengths?
4. How can a disrupter start eroding your business?
5. How long do you have until the disrupter completely erodes your business?
5 Things to Remember
An Old School Example
1. What kind of business are you in?
We are both in the people and cargo transportation business
Legacy Business Disrupter
What is our strength?
2. What are the advantages of your business?
Train costs are much lower compared to airfare for people and cargo
Legacy Business Disrupter
What is working for them?
3. What is working for the disrupter and what are their strengths?
Planes can move cargo and people way faster than rail
Legacy Business Disrupter
How can they take our business?
4. How can a disrupter start eroding your business?
Planes can specialize or change their pricing model for passengers and cargo
Legacy Business Disrupter
How long do we have?
5. How long do you have until the disrupter completely erode your business?
Trains have the advantage here. Planes were invented in 1900.
Legacy Business Disrupter
Blockbusterthought they werein the Movie Rental business
in now?
What Kind ofBusiness is Blockbuster
1. What kind of business are you in?
2. What are the advantages of your business?
3. What is working for the disrupter and what are their strengths?
4. How can a disrupter start eroding your business?
5. How long do you have until the disrupter completely erodes your business?
5 Things to Remember
QUESTIONS
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