Dinosaurs, Big Consulting Firms and Disruptive Innovation

N2Growth Blog

Thanks to Professor Clayton Christensen of Harvard University and his 1997 landmark book, The Innovator’s Dilemma , we have a new way of understanding the life cycle of companies and why some market leaders maintain their dominant position and other one-time market leaders disappear. Christensen calls this “ disruptive innovation ” and gives examples as diverse as the personal computer industry, milkshakes, and steel minimills. WHAT IS A DISRUPTIVE INNOVATION?

Disruptive Business Models | N2Growth Blog

N2Growth Blog

While much has been written about corporate vision, mission, process, leadership, strategy, branding and a variety of other business practices, it is the engineering of these practices to be disruptive that maximizes opportunities. Without a disruptive focus you are merely building your business model on a “me too&# platform of mediocrity. So why do so many established and often well managed companies struggle with disruptive innovation?

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Is Innovation manageable?

N2Growth Blog

In the years leading up to 2018, I have spent my time bringing innovation to the financial services space. Fintech, as this sector is colloquially referred, focuses for the most part on disrupting the state of affairs induced by the use of technology. As such it is all about innovation. And now, from a distance, my optimism regarding the sector’s ability to innovate and capture opportunities has not changed. Let’s study a bit about Innovation.

P&G: A Very Early Open Innovation Adopter

Mills Scofield

(This post ends the summary of fabulous stories and interactions at the 3rd Open Innovation (OI) Summit at BW's Center for Innovation & Growth: Practical Challenges of Global Open Innovation featuring P&G on April 21st.) Suffice it to say I was honored my friend Chris Thoen would agree to talk about P&G's Open Innovation history at our event.

How Chinese Companies Disrupt Through Business Model Innovation

Harvard Business

Experts continue to debate whether Chinese businesses are truly disruptive. Far from being disruptive, Chinese textile, apparel, appliances, metal, and solar and wind players have done little that has been different from the practices they found in these industries when they entered them. They have been displacers, not disrupters. Displacement generally is easier to combat than disruption.

Lens Shifting: Leading Indicators for Innovation

Mills Scofield

Recently, my friend Jackie Hutter and I did a workshop on Leading Indicators for Innovation from 2 aspects: 1) how can you look around you for leading indicators of areas ripe for innovation; and 2) what are leading indicators in your innovation process itself.

Turning Inn-Oi-Vey-Tion into Innovation

Mills Scofield

Let's face it - innovation is hard - it can be fun, but it's also hard. Virtures Values Sooy R and D Open Innovation Learning Leadership Innovation Strategy Innovation Culture Failure Execution Entrepreneur Disruptive Innovation Design Culture Change Culture Business Model Innovation 21st Century Capitalism

How Big Data Is Changing Disruptive Innovation

Harvard Business Review

Much fanfare has been paid to the term “disruptive innovation” over the past few years. Disruptive innovations are: Cheaper (from a customer perspective). And use a business model with structural cost advantages (relative to existing solutions). The reason these characteristics of disruption are important are that when all three are present, it’s difficult for an existing business to respond to competition.

Netflix's Bold Disruptive Innovation

Harvard Business Review

Every now and then, the business world presents us with a lab experiment that we can observe in realtime. Netflix's announcement that it is splitting off its DVD-by-mail business from its streaming business is just such an experiment. The DVD business will now go by the name Qwikster, and the streaming business will stay under the Netflix brand. It is Clayton Christensen 's innovator's dilemma incarnate, and Netflix is very publicly trying to solve it.

We Need to Expand the Definition of Disruptive Innovation

Harvard Business Review

Zipcar counts as a disruptive innovation. The latter is according to Clayton Christensen, Michael Raynor, and Rory McDonald in their recent HBR article “ What is Disruptive Innovation?” ” The authors explain that disruption “describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.” I just think they are missing the new disruption in town.

Amazon's Kindle Fire Is a Disruptive Innovation

Harvard Business Review

It is this type of thinking that leaves venerable, high-performing companies — like Apple — open to the existential threats posed by competitors' disruptive innovations. Disruption occurs given two criteria. The second: that the low-end competitor introduces a product with a scalable technology or business model advantage at its core that has the potential to displace the incumbent. This means that the Fire has the potential to disrupt the iPad.

The 4 Types of Innovation and the Problems They Solve

Harvard Business

One of the best innovation stories I’ve ever heard came to me from a senior executive at a leading tech firm. That, in essence, is the value of open innovation. Or, what if the company needed to identify a new business model? There is no one “true” path to innovation. They lock themselves into one type of strategy and say, “This is how we innovate.” Sustaining innovation. Breakthrough innovation.

What Is a Business Model?

Harvard Business Review

In The New, New Thing , Michael Lewis refers to the phrase business model as “a term of art.” It was still not clear that the model made sense.” A look through HBR’s archives shows the many ways business thinkers use the concept and how that can skew the definitions. ” That’s a concept Drucker introduced in a 1994 HBR article that in fact never mentions the term business model. Making Money with Digital Business Models.

What 40 Years of Research Reveals About the Difference Between Disruptive and Radical Innovation

Harvard Business

The second wave of digitization is set to disrupt all spheres of economic life. ” Yet, despite the unprecedented scope and momentum of digitization, many decision makers remain unsure how to cope, and turn to scholars for guidance on how to approach disruption. The first thing they should know is that not all technological change is “disruptive.” We used a topic-modeling algorithm that attempts to determine the topics in a set of text documents.

Box’s CEO on Pivoting to the Enterprise Market

Harvard Business

Technology Disruptive innovation Business models AudioAaron Levie, the CEO of Box, reflects on the cloud storage company’s entry into the enterprise market. He was skeptical about pivoting away from consumers, and it was challenging. But by staying disciplined with the product and deeply understanding market trends, they’ve made the strategic shift from B2C to B2B work. Download this podcast.

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The Real Secret to Thriving Amid Disruptive Innovation

Harvard Business Review

Lots of industries have been turned upside down by innovation over the years. But no industry has ever had its disruption chewed over in quite such exhaustive, exhausting detail as the media in the age of the internets. Can't we just get finished being disrupted already and get on with our lives? The disruption just keeps on going. Several people I've talked to here in Munich expressed surprise, in fact, that Facebook hasn't seen its business model disrupted yet.

How the Internet of Things Changes Business Models

Harvard Business Review

As the Internet of Things (IoT) spreads, the implications for business model innovation are huge. Filling out well-known frameworks and streamlining established business models won’t be enough. Value creation , which involves performing activities that increase the value of a company’s offering and encourage customer willingness to pay, is the heart of any business model. Design Disruptive innovation Internet

Ideas Don't Equal Innovation | N2Growth Blog

N2Growth Blog

As a result of our conversation, I decided to dust-off an old post, give it a few updates, and pass along my thoughts, which can be best summarized as “ Ideas Don’t Equal Innovation. Those of you familiar with my work are probably wondering if it is really me authoring this text…if you’re baffled at how a champion of innovation can simultaneously be an idea-basher, I urge you to read on, and I promise the congruity will become apparent.

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If Snap’s Strategy Is Building New Products, It Won’t Live Up to Its IPO Price

Harvard Business

The conventional wisdom holds that every industry is being disrupted and all the rules have changed. The easiest way to tell the difference is the business model. Doing so often requires a great product and a hybrid business model. If Snap intends to build products as a bridge to new platforms, or as an effort to create a hybrid business model more robust than its current platform business model, that may make sense.

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Does Your Business Model Look to the Future or Just Defend the Present?

Harvard Business Review

Many of the companies leading today’s technology-driven transformations across industries are leveraging transitional strategies, or more specifically transitional business platforms. Few old-guard players have recognized the power of transitional models, but companies such as Netflix, Uber, Apple, and Tesla know that waiting for the time to be right means waiting until it’s too late. Rather than giving up, he founded a DVDs-by-mail business until the time was right.

Alibaba: The First Real Test for Amazon’s Business Model

Harvard Business Review

Generating over $80 billion in sales in 2013, Amazon’s business model, with its ability to capture growth through disruption of retail stores, has proven to be very successful. However, the ultimate test for a business model comes not from being the disruptor but from how resilient it is to disruption itself. Alibaba is not only a very successful disruptive company in China but also brings to the table a completely different business model than Amazon’s.

What Innovative Companies Can Learn from Keurig’s Highs and Lows

Harvard Business

Continuously reinventing your organization doesn’t mean you have to start from scratch with each new innovation. The partnership provided Keurig with the funding it needed, plus the value-added education in roasting and brewing coffee, and gave GMCR a stake in a promising innovation at relatively low risk. If the venture is an acquisition, keep it separate from your company’s main business. Instead, what they should have done is innovate a new business model.

Will Wall Street Be Able to Earn the Trust of Younger Investors?

Harvard Business

Uber and Netflix have fundamentally shifted consumer behavior and disrupted incumbent firms. First, they created a combination of breakthrough product innovation and breakthrough business model innovation— the definition of category creation. Through these platforms, Main Street investors can screen startups by industry, review business plans, and ask questions of founders directly. How much disruption could Wall Street be facing?

The Businesses That Platforms Are Actually Disrupting

Harvard Business

Surveying these changes, you might conclude that if your business isn’t a platform, you had better worry that one is coming your way. Everyone from automakers to plumbers should count their days as traditional businesses. Traditional businesses should worry, and maybe they should think about platform strategies. They’re “traditional” matchmaker businesses that have been operating platforms for connecting different groups of customers.

The GuruBook

Leading Blog

He has curated ideas from 45 internationally–known doers and thinkers on the topics of entrepreneurship, innovation, and authentic leadership. We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is as follows: A company is a permanent organization designed to execute a repeatable and scalable business model.

3 Changes Retailers Need to Make to Survive

Harvard Business

Few industries are being disrupted as drastically as the retail industry. Pioneers of new business models, such as Alibaba and Amazon, are launching innovations in rapid succession, such as voice ordering and real-time pricing, while simultaneously building scale and driving down costs. The retailers left standing are those that figure out how to treat disruption as business-as-usual in an industry accustomed to slow, strategic planning.

Why Elon Musk’s New Strategy Makes Sense

Harvard Business

They then moved into the luxury market where they applied plenty of competitive pressure with the Model S. Its strategy of coming into the market from the high end did not fit the typical demand-side disruption playbook. Instead, it looked as though Tesla’s innovation was to redesign the car in a way that fundamentally meshed software and hardware. He clearly believes there is more innovation to be had with the two businesses combined.

Kodak’s Downfall Wasn’t About Technology

Harvard Business

Today, the term increasingly serves as a corporate bogeyman that warns executives of the need to stand up and respond when disruptive developments encroach on their market. Given that Kodak’s core business was selling film, it is not hard to see why the last few decades proved challenging. The company filed for bankruptcy protection in 2012, exited legacy businesses and sold off its patents before re-emerging as a sharply smaller company in 2013.

Research: Self-Disruption Can Hurt the Companies That Need It the Most

Harvard Business

When innovations threaten to disrupt an industry by replacing an old business model with a new one, incumbents need to invest in that model in order to survive. That’s the conventional wisdom, and it’s given rise to popular mantra “Disrupt or Be Disrupted.” But what if an innovation poses a threat, and you can’t yet tell whether it has genuinely transformative potential? Fuse/Getty Images.

The Power of Designing Products for Customers You Don’t Have Yet

Harvard Business

They were unprofitable in banks’ existing business models. But without good options for doing that, I ended up doing nothing – what Harvard Business School professor Clayton Christensen calls “non consumption.” ” But as Christensen observes, finding pockets of non consumption is a ripe opportunity for innovation. Getting innovation right doesn’t have to be a crap shoot. Paul Garbett for HBR.

Startups Are Turning Customers into Lobbyists

Harvard Business

In industries being disrupted by new entrants with distinct business models, incumbents often have an important advantage: entrenched regulatory and legal barriers. Small businesses and entrepreneurs have also effectively deployed online petitions. And food truck owners in Philadelphia successfully defeated a council proposal to restrict their business around Drexel University through a petition that gained widespread local support and media visibility.

How Likely Is Your Industry to Be Disrupted? This 2×2 Matrix Will Tell You

Harvard Business

The topic of industry disruption — “a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses” — is rife with misconceptions. Industry disruption, as Accenture research has found, is reasonably predictable. For the latter, we measured incumbents’ operational efficiency, commitment to innovation, and defenses against attack. Others are exploring subscription models.

If Ford Wants to Beat Tesla, It Needs to Go All In

Harvard Business

The auto industry is facing a trio of disruptive technologies: electric batteries, autonomous vehicles, and the mobile phone. Which is why the auto industry’s reaction to Tesla’s announcement on March 31 of its Model 3 is so strange. More than 325,000 people have made a $1,000 down payment to pre-order the Model 3, sight unseen, even though the excepted delivery date was two years away. It poses a threat to carmakers’ business model of selling people cars.

The Type of Innovation That Builds Nations

Harvard Business Review

Innovation drives economic growth. This logic has risen to dominate the discourse in development circles, with government leaders, policy influencers, and development-minded business leaders fully embracing innovation as a panacea for unemployment and economic underperformance. Looking back on 2014, it is not difficult to see this globalization of the innovation mindset at work. Meanwhile, NGOs are increasingly emphasizing the role of innovation in their work.

Three Innovation Trends in Asia

Harvard Business Review

I recently participated in a panel discussion hosted by the Economist Corporate Network in Singapore about innovation in Asia. But what I really wanted to discuss were the three biggest trends I see affecting innovation in the region. As my colleagues noted in a Harvard Business Review article earlier this year, the extremes in most Asian markets are well served. Tuck Professor Vijay Govindarajan calls this reverse innovation. A focus on business models.

Better Innovation Architecting

Harvard Business Review

One tried-and-true innovation trick is to look for analogies. Let's practice by using this approach on the act of innovation itself. What do innovators do? At a basic level, they transform a blank piece of paper into a successful growth business. They don't just start by building a business. Instead they sketch or create physical or computer models to bring their ideas to life. The same is true of innovation. The business is the thing.

A New Model for Emerging Markets

Harvard Business Review

Matt Eyring , president of Innosight, explains why disruptive innovation in developing countries means not just tweaking, but instead rethinking, your business. He is the coauthor of the HBR article New Business Models in Emerging Markets. Disruptive innovation Strategy

Innovators are Bracket Busters

Harvard Business Review

As I shredded my bracket I couldn't help thinking about the parallels between innovation and bracket busting. Maybe that's because of the parallel with the innovators I've seen over the years. Innovators, in their way, are bracket busters. The solutions we need require transformative bracket-busting business models and systems. Be an innovator. Saul Kaplan is the Founder and Chief Catalyst of the Business Innovation Factory (BIF).

Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

But recent technological advances and new business models are now allowing nimble players to compete and provide consumers with cost-saving alternatives. Recent developments, such as falling solar panel prices and increases in efficiency rates (the rate at which sunlight hitting panels is turned into usable energy), have made distributed energy increasingly economical, while new business models and financing methods have made it more accessible.

The Innovation Health Care Really Needs: Help People Manage Their Own Health

Harvard Business

Finally, health care, which has been largely immune to the forces of disruptive innovation , is beginning to change. Whereas new technologies, competitors, and business models have made products and services more affordable and accessible in media, finance, retail, and other sectors, U.S. In most industries, disruption comes from startups. One big incumbent that has become more receptive to disruptive innovation is the insurance giant Humana.

How to Use Uncertainty and Surprise for Breakthroughs

LDRLB

Could we be overlooking – even resisting – one of the most essential catalysts of personal and business breakthroughs? Could we be ignoring the most fundamental tool that anyone can use to create disruptive innovation and change? Creating game changers – whether products, services, or new business models – requires leaders to live with uncertainty, embrace ambiguity, and respond to both good and bad surprises along the way.

No Innovation Is Immediately Profitable

Harvard Business Review

The team had spent the past two months formulating what it thought was a high-potential disruptive idea. Now it was asking the business unit’s top brass to invest a relatively modest sum to begin to commercialize the concept. It employed a business model that would make it very difficult for the current market leader to respond. The classic fingerprint of disruptive success. And certainly scaling the business will likely involve the existing business.

How Online Innovators Are Disrupting Education

Harvard Business Review

Four years ago Harvard Business School Professor Clayton Christensen predicted that online education would take off slowly and then hit everyone by surprise: the S-curve effect. Khan's business model is simple, yet impactful. The Sloan study indicated that the best teaching often occurs under a blended model of online learning coupled with real face time. Disruptive innovation Education