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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