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Holding Back The Tide How do you stop disruptive innovation?
America has the best system of government money can buy, so the first step is to buy some laws.
More laws help the entrenched players, while raising the cost of doing business. It’s a holding action, trying to go back to “the good old days.”
Undertakers, retailers, telephone companies, computer companies all tried to use the courts and the legislature to stamp out disruptive innovation.
It’s a temporary fix at best.
The only sure fire way to compete is to offer more value at a lower price to a new segment of the audience. Get below the disruptor and disrupt them.
A lot of perks and processes must go out the window when you reorganize, and you have much more risk than when winding down an industry leader.
Windows of opportunity shrink each generation. You must execute faster
Makers by Cory Doctorow shows how shrinking cycle times reshape business.
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HIGH RETURN LEADERSHIP
Harnessing Disruptive
Innovation
Managing the New Normal
The Opportunity I met Clay Christensen when he was doing three presentations about Disruptive Innovation at the American Enterprise Institute in Washington DC in 2009. Turned me into the proverbial six year-old with a hammer as I am seeing disruptive innovation explaining both existing situations and also providing new opportunities to gain competitive advantage.
Disruptive Innovation is a powerful force that can be harnessed for rapid growth.
The Basics Disruptive Innovation occurs when a less accomplished, less feature filled offering creates a new market under-segment.
Established competitors are locked into a path of increasing scope creep to keep their existing customers and cannot launch a simultaneous minimization effort for cost, features, support, sales, and distribution.
Typically an existing producer will not allow an internal project to disrupt an existing market. They are too focused on exploiting the top end of their market.
One of the earliest examples was Christensen and his brother pooling their money to buy a Japanese transistor radio. It could not compete with the tube powered console in their parent’s living room, but the boys had
their own radio, even if they did have to go outside to get a signal.
When solid state television was introduced, they had a hard time finding distribution channels, since replacing tubes was the most lucrative part of a television sale. Luckily, Target wanted to sell the new maintenance-free products since they didn’t have a technical service staff to support a television repair business. The television series American Dreams chronicled the end of the tube television service business.
Disruptive innovation has already had a dominant role in reshaping the automotive industry, agriculture, steel, travel, computer hardware and software, entertainment, healthcare, housing, fashion, almost every industry.
Disruptive Innovation Comes From Customers
Doers
Economy
Technology
Manufacturing
Distribution
Financing
Marketing
Sales
Service
Tribes
Harnessing Disruptive Innovation The major enabler of disruptive innovation is the Internet. Different social groups are being tried, more information is available, we have unlimited resources at our disposal.
Yet most disruptive opportunities fail.
Many writers state that the best chance for success is to start with a new company. That would be unfortunate.
Intel, Seagate, Perkin Elmer, McCaw, and Google are all billion dollar operations that have used both their size and disruptive innovation to create new market dominance.
It starts at the top. What is the role of management?
The Aztecs were sure that sacrificing virgins made the sun come up. Command and control management practices may be throttling as many organizations as they help.
Have you ever managed an open source project? Do one for your career.
Does your current internal reporting cause major improvements at least six times a year? Then don’t apply it to a new operation. They need better.
Beware the weight of an organizational chart. Let’s not have the sixth graders bullying the kindergartners. They might control your pension.
