Disruptive insight
Grok Headline matches for Disruptive insight
Microsoft: Windows XP SP2 Will be
Disruptive
Microsoft: Windows XP SP2 Will be
Disruptive
03/06/2004 02:02 AMThe software giant has created an online training course for
developers to explain the implications of the security-centric OS
service pack.
Disruptive Innovation: The Need for a
Better Methodology
Disruptive Innovation: The Need for a
Better Methodology
06/05/2005 11:12 PM
The
Innovator's Solution tells you what you need to do to cannibalize the
markets of incumbents and create entirely new markets, by focusing on
the needs of over-served customers and non-customers. But it's a lot
harder in practice than in theory, and it needs some unique skills and
hard-to-obtain knowledge.

[Posted from Orlando]
In
previous articles, I've summarized Clay Christensen's approach
to innovation (established companies focus on what he calls
'sustaining' innovations while new entrants focus on 'disruptive'
ones), and about the research approach
a> that he suggests for
identifying and assessing innovation opportunities.
His second book, The
Innovator's Solution, looks
in greater detail at
disruptive innovation,
which he breaks into two types:
- Low End Disruptive
Innovation: This entails offering a
lower-cost product to existing
over-served customers, which incumbents don't care
about because they're at the low-margin end of their customer base;
then as
technology improves, the disruptor gradually eats into the incumbents'
primary markets from
below.
The classic example
of this is steel minimills, which initially focused on the low-end,
low-margin rebar market (which the integrated steel makers were
pleased to vacate), but then used new technology to move upscale to
the
point they have now stolen even the high-end market (sheet steel) from
the giants. To achieve this, it's essential that the innovation not be
suitable to or
adaptable by the incumbents -- that they don't find the disruptor's
initial business model attractive; otherwise, the incumbents will
bring
their considerable resources and strong customer relationships to bear
to make the innovation a 'sustaining' one for them, and ward off and defeat the
disruption attempt.
- New Market Disruptive
Innovation: This entails developing and offering a
product with benefits previously not
available at all or which are very inconvenient to customers, and
hence creating entirely new markets for entirely new groups of
customers. The
personal computer and personal copier are examples of this. In some
cases a New Market Disruptive Innovation can later be applied to
become
a Low End Disruptive Innovation as well.
The part of Innovator's
Solution that most intrigued me was the section on how
to identify potential disruptions and how to identify customers for
them. To identify potential disruptions, he suggests, you should
'segment' the market by
the circumstances
of use of the product or potential product
(i.e. what the product gets 'hired to do' or
what 'job it does' that needs to be done), rather than by customer
identity
(demographics) or product attributes (category). The focus is
therefore on when/why/how
it would it be used, not what
it would feature or who would
use it. This is a needs-driven
strategy, requiring a lot of
research & cultural anthropology. It means discovering who needs
'coolth', and when and how they need it, not who needs an air
conditioner.
This is hard for established, risk-averse, inflexible companies to do
because:
- they have a fear of too
much focus (putting all their eggs in one basket, in case it's the
wrong basket);
- their shareholders and existing line managers insist
on being able to quantify outcomes in
advance;
- their existing channels are organized by product
or customer demographic, not circumstances of use; and
- their
advertising and branding are
also done
by product or customer demographic.
Hence it is often best
to have the innovation in established companies done by a
new, autonomous division or group, free from the constraints,
prejudices, risk-aversion and 'why rock the boat' thinking of the
existing operations.
To identify customers for disruptive innovations, Christensen says you
need to look for:
- People and companies who have a need
but lack the money or skill to meet
it with existing products;
- People and companies who have no alternative way
today to do the job your product or service could help them do; and,
of course,
- People and companies who are over-served,
interested in a
lower-cost, simpler product without all the extraneous and rarely-used
bells and whistles of current products.
It's important that these potential customers perceive the product to
be 'foolproof': easy to use, easy to learn, easy to buy (though if the
product is for recreational use, customers may buy a product with a
steeper learning curve if the learning is fun).
Equally important is that there be available, and hungry, channel
partners (sources of supply, distributors,
retailers, marketers etc.) to help you get it to market -- if these
partners and their materials and skills are scarce, or disinterested
in
you, customers may give up on you before you're able to deliver
reliably.
The rest of the book provides suggestions on the right
roles for your company in developing the
innovation, how to partner with other appropriate companies to
optimize
competencies and synergy, how to find the
non-commodity, high profit points in the customer
value chain, the importance of setting up the right
people, process, values, alliances and
organizational structure for innovation, how to align your strategy to
support innovation (using an emergent,
complex system-friendly
strategy), and how to address financing and risk issues in innovation
ventures.
The final section addresses the role of senior management in
disruptive
innovation. Leaders, he says, must exercise three key
responsibilities:
(a) allocate appropriate,
patient resources; (b) establish a process to continuously generate
disruptive innovations; and (c) detect and adapt to changes in markets
and
other elements of the system. The four elements of a 'disruptive
growth
engine' therefore are:
- start before you need to
(don't wait for a crisis);
- put a senior manager in charge
(executive sponsorship is essential);
- create an expert
team of movers and shapers (and allow them to 'self-manage' the
people,
processes, and values to keep them in sync with the commercialization
process for disruptive innovations); and
- train the troops
(i.e. customer-facing people to discover and tap into emerging and
potential needs)
In these areas, Christensen is on comfortable and solid ground.
But I keep coming back in my thinking to how an organization can
actually apply his earlier
advice
on how to identify potential disruptive innovations and how to
identify
customers for them (and which comes first anyway?) It's a lot easier
in theory than it is in practice, as I can tell you from personal
experience.
Let's take the example of a company that has expertise in the textile
industry, for example. They have an established market in specialized
blankets, and some scientific expertise in weaving and in thermal
properties of materials. If they're threatened by new low-cost Asian
competitors in this mature market space, how would they go about
becoming a disruptive innovator? They wouldn't talk to existing
customers -- that's for sustaining
innovation not disruptive innovation. They wouldn't do competitive
analysis -- except perhaps if they could identify some over-served
customers. Other than raw imagination and a lot of serendipitous
reading and lateral thinking, it's hard to imagine how such a company,
even with a separate, empowered innovation team, could begin to
identify either the unmet needs within their competency to deliver, or
the customers that have these needs.
What Christensen needs to add is a whole process to surface these
needs
and customers. Who, other than established buyers of blankets, might
be
interested in textiles with thermal properties? Hospitals and doctors
dealing with hypothermia? Insulation companies? Gardeners and farmers
seeking to protect crops from frost? Swimming pool cover
manufacturers?
Expedition outfitters? And since good thermal properties also insulate
against heat, should we also consider cooler manufacturers,
refrigerators, umbrella makers, UV-ray protectors etc.? The
possibilities are endless. How do we effectively brainstorm and then
filter the potential customers and potential opportunities?
The answer, I think, is a discovery process, but one somewhat
different
and more dependent on brainstorming, creativity, very broad
environmental scanning, research, cultural anthropology and
exploratory
conversations than the one I have suggested<
/a> for achieving understanding in complex situations.
How, do you think, should such a discovery process be structured? If
it
were your job to develop the process to find new customers for new
products meeting new untapped needs, that are within your company's
competency to provide, how would you go about it?
This process just might be the holy grail of entrepreneurship.
|
New technique can help tame disruptive
kids
New technique can help tame disruptive
kids
03/23/2005 08:01 AMChicago Tribune Mar 23 2005 12:02PM GMT
Disruptive Technologies Are Boring And
That's Their Secret
Disruptive Technologies Are Boring And
That's Their Secret
05/19/2004 07:17 PMWhile most of this article focuses on other elements of conversations
between two of my favorite strategic thinks, Clayton Christensen and
Andy Grove, there is a great quote where Grove points out the
Christensen the problem with talking about how "disruptive
technologies" come out of nowhere to surprise established companies:
"Clay, I see
what's wrong with your idea. You shouldn't call them disruptive
technologies, you should call them straight, boring technologies."
That sentence alone explains why so many companies still fail to see
the threats of disruptive technologies. Christensen's work is now
quite famous, and it's difficult to find a tech exec who hasn't (said
they've) read it. You also hear execs all the time talk about how
they now know to pay attention to disruptive technologies - but you
still see them missing the boat, often while exclaiming how vigilant
they are in spotting disruptive technologies. Grove's point goes a
long way towards explaining that (even if half-jokingly). Most execs
ignore disruptive technologies because they don't think they're
actually disruptive. They're "straight, boring" technologies that
don't seem likely to create a profit. That also corrects that fallacy
the disruptive technologies "come out of nowhere." That's rarely
true. The reason they seem to come out of nowhere is that established
companies ignore them for so long, that by the time they do realize
they're a threat, it's too late.
Virtualisation 'most disruptive PC
technology'
Virtualisation 'most disruptive PC
technology'
08/10/2004 12:28 PMInfomatics Aug 10 2004 4:07PM GMT
BitTorrent and RSS Create Disruptive
Revolution
BitTorrent and RSS Create Disruptive
Revolution
12/16/2003 12:29 PMBitTorrent and RSS Create Disruptive Revolution .. syndication
requires full posts, not headlines .. Steve Gillmor ..
opportunity
eweek.com/article2/0,4149,1413403,00.asp
track this
site | 5 links
BitTorrent and RSS Create Disruptive
Revolution.
BitTorrent and RSS Create Disruptive
Revolution.
12/15/2003 11:34 PMSteve Gillmor:
BitTorrent
and RSS Create Disruptive Revolution. BitTorrent as it is today is
not suitable for distributing RSS feeds, because the centralized
tracker uses just as much bandwidth as a modern Web server. P2P news
delivery is a great concept, but to make BitTorrent suitable for RSS
you'd have to make enough changes that you might as well start from
scratch. I'm still holding out for
Newswire as the solution.
VON Highlights Disruptive Tendencies of
VOIP
VON Highlights Disruptive Tendencies of
VOIP
06/09/2004 02:11 PMCurrent business models for voice no longer work, says an analyst at
the VON Europe show.
Dvorak Claims Disruptive Technologies
Don't Exist
Dvorak Claims Disruptive Technologies
Don't Exist
08/02/2004 04:42 AMJohn C. Dvorak seems to exist solely to show just how little he
understands about technology and business these days. His latest
piece points to a few bad examples of what might be disruptive
technologies and then
claims
there's simply no such thing as a disruptive technology, as
described by Clayton Christensen. It appears Dvorak has never
actually read Christensen's books, but assumes he knows what they're
about after hearing Christensen say the idea of disruptive
technologies came to him while watching how DEC failed. Maybe the
problem is that, like others before him, Dvorak misreads "disruptive"
and assumes there needs to be a "big bang" (he mentions the atom bomb
as being disruptive), when the truth is "disruptive technologies" are
really
"straig
ht, boring technologies. In the meantime, I'd suggest that Dvorak
take a look at VoIP and camera phones, but it appears he's
already trashed camera phones for not being good
enough (the first sign of someone who doesn't understand disruptive
technologies) and while he seems to
like
VoIP and admit that it's the "future of telephony," it never
occurs to him that it's disruptive.
Disruptive Innovations Wins Contracts to
Provide Mozila-Based Solutions to Two
Major European Firms
Disruptive Innovations Wins Contracts to
Provide Mozila-Based Solutions to Two
Major European Firms
04/16/2004 11:43 PMInsight into ocular mod
Insight into ocular mod
12/24/2004 12:29 PM
David Pescovitz:
Following up on my earlier
post
today about JewelEye, Shannon Larratt of the excellent
Body Modification Ezine points to
his wife Rachel's personal account of Cosmetic Extraocular
Implantation. Shannon says Rachel was the first American to have the
procedure done. And I was very wrong in my original post:
self-installation is clearly
not an option. Rachel writes:
"The procedure itself involved injecting a liquid to
elevate and separate the layers of the eyeball, which helps the
surgeon with the placement of the implant under the conjunctiva (in
old age, many people build up calcium deposits in this area, so our
eye is actually designed to handle material stuck there). A small flap
is cut, and the implant is inserted. After it was in place, they began
suctioning out the liquid that was used to elevate the layers. After a
few weeks, the liquid will dissipate and the implant will become even
more visible."
Link
Compaq Insight Integration with SMS 2.0
Compaq Insight Integration with SMS 2.0
06/22/2004 01:56 PMNew insight into ancient Americans
New insight into ancient Americans
01/04/2005 07:19 AMCNN Jan 4 2005 11:27AM GMT
Consumer Insight Why People Buy
Consumer Insight Why People Buy
12/15/2003 05:57 AMmarcus evans Dec 15 2003 4:19AM ET
Pipe 1.2 offers scripting insight
Pipe 1.2 offers scripting insight
03/22/2005 03:20 PMPipe 1.2 for Mac OS X is a Mac OS X Cocoa application made for
developers and people who are interested in learning and experimenting
with scripting languages.
"insight to the current Iraqi mindset"
"insight to the current Iraqi mindset"
06/27/2004 09:00 PMGraphic insight into Khobar raid
Graphic insight into Khobar raid
06/06/2004 06:51 AMSaudi militants post an account of the attack on a housing compound -
that left 22 dead - on the internet.
Get insight on how Microsoft will help
beat the RIAA
Get insight on how Microsoft will help
beat the RIAA
10/31/2003 04:59 AMVery interesting read and perspective on how Microsoft may help
consumers retain fair use rights. [Marc's Voice]...
great insight into the types of
developers
great insight into the types of
developers
08/17/2004 11:14 AMAngels, Assholes and Morons .. Mark
Pilgrim
diveintomark.org/archives/2004/08/16/specs
track this
site | 3 links
An IT Manager’s Insight into Mobile
Security
An IT Manager’s Insight into Mobile
Security
01/22/2004 05:03 PMInteresting Microsoft Insight from
Javalobby
Interesting Microsoft Insight from
Javalobby
03/30/2005 07:25 AMA couple of weeks ago, Microsoft hosted a Technology Summit and
invited many prominent members from a variety of different platforms
(Linux, Java, Flash, etc.) to our campus in Redmond. They spent
two-and-a-half packed days listening to presentations, learning about
our products and tools, asking hard questions, and providing great
feedback. The founder of Javalobby, Rick Ross, has recorded a summary
of his insights and thoughts based on the summit.
Insight StrikeFinder Digital Weather
Avoidance
Insight StrikeFinder Digital Weather
Avoidance
08/20/2004 08:05 AM
By detecting and processing electrical activity from
lightning strikes, the Insight StrikeFinder helps pilots to avoid
dangerous weather that can turn a small aircraft into a aluminum
coffin. Compiling and interpolating data from thousands of strikes
"gleaned from the background noise," the StrikeFinder lets pilots
determine if that impending storm cloud is really as dangerous as it
might seem, preventing unnecessary detours that might take them
unnecessarily off course.
The StrikeFinder is available in two models - the new model with an
ultra-bright LED display can be had for just $4,700, while the
original models are a relative bargain at $3,900. (Thanks, Rob!)
R
ead - Catalog Page [AircraftSpruce]
Digital Insight shares fall on CFO
resignation
Digital Insight shares fall on CFO
resignation
09/08/2004 08:04 PMSiliconValley.com Sep 8 2004 11:03PM GMT
Listen In: Insight Out: eMusic gains,
TVT losses
Listen In: Insight Out: eMusic gains,
TVT losses
06/22/2005 02:33 AMeMusic makes something of its new filtering and sorting system, Power
Charts. TVT Records' huge settlement over Warner Music Group is tossed
out.
Insight Bowl: Oregon St. 38, Notre Dame
21 (AP)
Insight Bowl: Oregon St. 38, Notre Dame
21 (AP)
12/29/2004 06:12 AMAP - Derek Anderson and Oregon State finished off Notre Dame's dreary
season with a 38-21 beating of the Irish on Tuesday night in the
Insight Bowl.
Listen In: Insight Out: Of the charts,
Grokster week
Listen In: Insight Out: Of the charts,
Grokster week
03/31/2005 05:57 PMRadio play and MTV drive traditional record charts but what influence
allows M.C. Hammer to chart at the iTunes Music Store? And can balance
be found in the latest P2P debates? Playlist’s Glenn Peoples
offers his take.
HP Insight Manager 7 and Rack and Power
Management 1.1 on the same PC?
HP Insight Manager 7 and Rack and Power
Management 1.1 on the same PC?
06/20/2004 11:11 AMMore Insight On Longhorn's Avalon And
Aero Design
More Insight On Longhorn's Avalon And
Aero Design
05/23/2004 04:25 PMinsight into the birth of the kerry
intern rumor
insight into the birth of the kerry
intern rumor
06/01/2004 04:18 AMfirst person from alexandra polier, no less
An IT manager's secret insight into
mobile security
An IT manager's secret insight into
mobile security
01/28/2004 07:25 AMZDNet UK - Insight - What can you learn
from a hacker site?
ZDNet UK - Insight - What can you learn
from a hacker site?
01/22/2004 09:14 AMhttp://insight.zdnet.co.uk/communications/networks/0,39020427,39119208
,00.htm
Ok, I admit it. I talk to hackers. Not just any, some have been on TV
and CNN.com with FBI agents. I have never asked them for How-To but
love to hear about their "high level" view of Security Policies they
were able to penetrate. It has been a taboo debate among the hardcore
security folks. I know some hackers who are now security Gurus for
some of the world’s largest media outlets. They never...
Online Activist Seeks Offline Insight
Online Activist Seeks Offline Insight
01/16/2004 01:00 PMSteve Cisler has been online since 1985. As of Sunday, and for at
least the next several months, he'll be cutting his direct links to
cyberspace.
New Look At Layered Material Lends
Insight To Silicon
New Look At Layered Material Lends
Insight To Silicon
12/02/2003 05:27 AMSpace Daily Dec 2 2003 4:50AM ET
LWC Research Announces Free Market
Insight Newsletter
LWC Research Announces Free Market
Insight Newsletter
04/06/2005 03:14 AMFocusing on the measurable value of enterprise systems and the
business applications of emerging technologies, LWC Research announces
Market Insight, a free monthly newsletter. [PRWEB Apr 6, 2005]
Insight UK hits back at 'jobs on the
rocks' claim
Insight UK hits back at 'jobs on the
rocks' claim
01/29/2004 09:58 AM'Committed to Sheffield' says MD
ADVIZOR Provides Business Intelligence
and Data Visualization Insight
ADVIZOR Provides Business Intelligence
and Data Visualization Insight
03/22/2005 04:24 PMThe B-EYE-Network and Claudia Imhoff recently interviewed President
Doug Cogswell. [PRWEB Mar 22, 2005]
Wireless Internet Soars Nearly 30% -
Ipsos Insight Report
Wireless Internet Soars Nearly 30% -
Ipsos Insight Report
03/19/2005 03:02 AMDigital Lifestyles Mar 18 2005 8:36PM GMT
Teen bl0gs offer insight into feelings
about life
Teen bl0gs offer insight into feelings
about life
04/02/2005 09:20 AMChicago Tribune Apr 2 2005 12:24PM GMT
Brain Studies Reveal Where Aesthetic,
Insight Reside
Brain Studies Reveal Where Aesthetic,
Insight Reside
04/13/2004 12:43 AMGrok Description matches for Disruptive insight
GrokA matches for Disruptive insight
Disruptive insight