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Big Bang Disruptions throw many enterprises out of business. Enterprises need to have a strategy to face these disruptive innovations. In this presentation we will go over some such disruptive innovations happened in the past to understand what it is and how some companies have faced these disruptions successfully. We sill also have a look at some of the potential disruptive technologies that are in the making. This presentation was first delivered at the Monthly Meeting of ISACA, Chennai Chapter.
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Kannan Subbiah
Principal Consultant, Blu Bricks Consulting
Disruptive Technologies – A Closer Look
ContextDisruptions stories of the pastThe Theory behind itSurviving Disruptions
Potential Disruptions
Q & A
Agenda
Disruptions are good for customersBrings cheaper productsBetter products
Does the job effectively and efficiently
But they disruptEstablished companiesMarket of well settled product(s)
Happening a lot quicker
Not all innovations are disruptions
Context
Disruption stories of the past
Was the Apple of the last century
Quick FactsFounded in 1892 by George EastmanInvented the first photographic film in roll formAdded to Dow Jones in 1934Accounted for 90% of film sales and 85% of camera sales in 1976Employed 145,000 in 1988Pioneer in digital camera with first megapixel prototype in 1975
KodakYou press the button, we do the rest
What went wrong?A Paradox between logic and creativity in strategyHeavy dependence on films and progressively less attention on the equipmentAvoided risky decisions and maintained status quoLacked the frame-breaking GTP approachChange came in too late in 2003
Kodak
What went wrong? A Paradox between Revolution & Evolution
Market signals came as early in 1981 (Sony’s filmless digital camera)Found hard to believe in something that was not as profitable as filmsDigital age necessitated a Revolutionary change, but Kodak did it too slowly , too late
Kodak
What went wrong?A paradox between Markets & Resources in strategy
Took a market based view (MBV) as late in 2003 to broaden its digital presenceBut, the market change was rapid there afterKodak’s core-competency in the digital photography value chain was very little.
Kodak
Was once the leading mobile company
Pioneered many innovationsOwn operating systemRole in development of GSM & SIM technologiesEarns Euro 400 million in royalties from competitors
Was late in responding to the smart phone disruption
What went wrong?2004: Citing risks of failure, did not pursue the development of smartphones.Has missed the disruptive innovation that opened up new customers & Markets.
NOKIA
First mover with instant streaming advantage
An attempt to survive disruption
A case of self disruption
Decoupling of DVD and streaming services in terms of pricingWhat went wrong?
Not separating the pricing earlier
Not re-branding the streaming as a separate business
Not adding a streaming rental service
Netflix
The Theory behind it
Definition of Disruption:the act of breaking regular flow or continuity of something; disturbance; a disorderly outburst or tumult; dislocation, especially an event resulting in dislocation or discontinuity
Clearly to be disruptive, something has to disrupt the status quo.
Certainly a disruptive innovation should minimally cause a market disturbance.
it needs to succeed at obsoleting a product category altogether.
What is Disruptive Innovation
Offers inferior outcome in the beginning
But has an extendable core within it
It is adopted by an underserved or not served market
It follows a pattern and could happen to any one
Decimates the market share of large incumbents in few short years
Comes almost from where it is least expected
Incumbents are unable to respond to the competition
Usually a technology innovation is present, but not always
Characteristics
With ITThe disruptions are inherentCatching up like a viral diseaseBrings impacts in unrelated industries as wellIt is the application of technology that disrupts and not the technology itselfMobility is bringing in a wider disruption
IT – an enabler of disruption
Performance of Disruptive Technology
Surviving Disruptions
See it comingSingle event than a processSome times quickly and completely, and other times slowly and incompletely
Are you among the targets?An opportunity / risk?Not just a price competition
Sustain the innovation
Understand the dynamicsThe business modelThe purpose vs. the customersBarriers for the disruptorThe advantage mattersKeep a watch on the changes
Sustain the innovation
Setup the right structure
Be a Distruptor
Dilute stakeGo publicRope in private investors
Merge
Be acquired
Sell
Liquidate
Plan the exit
LEAPS Strategy
Listen Start with yourself, Not the market
Explore Go outside to stretch the inside
Act Take Small simple steps, Again and Again and Again
Persist Take the surprise out of failure
Seize Make the journey part of the (Surprising) Destination
Leading Disruptive innovation
Disruptive Technologies ahead
1. Post PC devices
2. Mobile Applications And HTML 5
3. Personal Cloud
4. Enterprise App Stores
5. The Internet Of Things
Futuristic Short Film by Sight Systems
Vision of the future
Meeting the Challenge of Disruptive Change by Clayton M. Christensen and Michael Overdorf
Disruptive Confusion Unravelled by innovativedisruption.com
Surviving Disruption by Max Wessel and Clayton M. Christensen
The impact of Disruptive Technologies on Designated organizations within the IT industry in South Africa by A.C. Windell
References
Q & A
Thank You
My Contact Details: Email : [email protected]
: [email protected] : http://www.linkedin.com/in/ksubbiahTwitter : @kannagoldsun
