"It is almost banal to say so, yet it needs to be stressed continually: all is creation, all is change, all is flux, all is metamorphosis.” !Henry Miller - writer, revolutionary.

I AM SCOTT

@thescott

SCOTT@QUIRK.BIZ

Specialist generalist HEAD OF QUIRK LABS

THIS IS A PUBLIC SERVICE ANNOUNCEMENT…

black

1942 PSA “Five Inch Bathers” youtube.com/watch?v=E4j9QGlCNuA

DISRUPTIVE INNOVATION DON’T BE A VICTIM!

A disruptive innovation is an innovation that helps create  a  new  market  and  value  

network, and eventually  disrupts  an  existing  market  and  value  network (over a few years or decades), displacing  an  earlier  technology.

Successful companies (incumbents) can put too much emphasis on customers' current needs and fail to adopt new technology or business models that will meet customers' unstated or future needs; such companies will eventually fall behind. (And spend the years playing catch-up e.g. Blackberry)

Qua

lity

Minimum customer need

Sustaining innovations

Incumbents treat innovation as a series of incremental improvements. They focus on improving the quality of their premium products to sustain their current business model

Resource: http://bit.ly/disruptionNYT

“The  leaked  New  York  Times  innovation  report  is  one  of  the  key  documents  of  this  media  age.”    Nieman  Journalism  Lab.

Disruptive

innovations

Disruptors introduce new products that, at first, do not seem like a threat. Their products are cheaper, with poor quality — to begin with.

Qua

lity

Minimum customer need

Sustaining innovations

Resource: http://bit.ly/disruptionNYT

Qua

lity

Minimum customer need

Over time, disruptors improve their product, usually by adapting a new technology. The flashpoint comes when their products become “good enough” for most customers. They are now poised to grow by taking market share from incumbents.

Resource: http://bit.ly/disruptionNYT

It’s not about keeping up technologically, but rather the dilemma:

!STEER RESOURCES TO

TARGET NEW (RISKIER) VALUE NETWORKS

(Disruptive)BUSINESS AS USUAL

(Sustaining)

OR

WHY is it important now?

A tipping point of invention? (At the expense of your value chains)

THE CONSUMER MOBILITY STACK

CONNECTIVITY

HARDWARE

SOFTWARE

THE EXPERIENCE

OUR BEHAVIOUR

CONNECTIVITY

FASTER

CHEAPER

EVERYWHERE

FASTER

CHEAPER

EVERYWHERE

LTE-A Downloading 800Mb in 6s. A full length Blu-ray movie would take approximately 3mins to download.

- “African Undersea Cables", Steve Song, Many Possibilities, July 2009

http://bit.ly/1lvPm2b

CONNECTIVITY

HARDWARE

MORE ACCESSIBLE

MORE PERVASIVE

R450

Light: $7

Motion: $45

MORE ACCESSIBLE

NFC Stickers R2ea.

MORE PERVASIVE

Gesture

Proximity

Gyro

Accelerometer

Geomagnetic

Temp / Humidity

Barometer

Hall

Light

SAMSUNG GALAXY S4

R450

Light: $7

Motion: $45

MORE ACCESSIBLE

NFC Stickers R2ea.

MORE PERVASIVE

Gesture

Proximity

Gyro

Accelerometer

Geomagnetic

Temp / Humidity

Barometer

Hall

Light

SAMSUNG GALAXY S4

ESTIMOTE NEARABLES •Accelerometer, temp, GPS •$99 for 10 (incl API access)

MAKING STUFF IS GETTING #EASIER

CONNECTIVITY

HARDWARE

SOFTWARE

“Building on breakthroughs in WolframAlpha, the Wolfram Language lets you mix ordinary free-form

natural language into your code.” “Start using the Wolfram Language with no

programming knowledge”

“HYPER-RELEVANCY”

CONNECTIVITY

HARDWARE

SOFTWARE

THE EXPERIENCE

RELEVANT, DATA DRIVEN EXPERIENCES

DATA

EXPERIENCE

CUSTOMER

BRAND

“I expect a consistently relevant brand experience”

“We need a single view of each customer”

#BigData #BuzzwordOfTheYear #BigDataIsTheNewMobile

THE PRODUCTIVE PHASE

A new era of productivity enabled by technology, driven by a society that no longer sees the Internet as a mysterious, intangible, exclusive, and scary "thing".

CONNECTIVITY

HARDWARE

SOFTWARE

THE EXPERIENCE

OUR BEHAVIOUR

Harnessing the POWER of the Internet for personal gain and social benefit.

TAMING THE INTERNET

"IF I take a photo on Instagram THEN save the photo to dropbox"

??

Crowd funding

•1,217,419 Kiva lenders •$604,394,200 in loans  •98.79% repayment rate

“Kiva lets individuals lend as little as $25 to help create opportunity around the world.”

Crowd funding

Crowd funding

Maker Communities

Never before has is been so easy to

make an idea happen.

100x

THEN vS Now

$$$$$ $

The Next Disruption Where Digital Will Lead Ushttp://youtu.be/yJ-L2IW5DaY

10x the innovators

1/10th the cost

100x more ideas

turned into reality

NOW x AFRICA

$

X the innovators

1/10th the cost

X more ideas

turned into reality

NOW x AFRICA

$

X the innovators

1/10th the cost

X more ideas

turned into reality

Unprecedented fragmentation and

creation of new value.

WHO’S BEEN DISRUPTED?

Britannica vs. ?

Betamax vs. VHS

iPhone vs. many value chains

Steve Balmer Microsoft CEO

iPhone vs. many value chains

GEARING FOR THE INVENTION ECONOMY

DISCLAIMER: None of the following is very easy.

1. DIGITAL TRANSFORMATION

Re-align your company’s TOTAL CUSTOMER

EXPERIENCE LIFECYCLE with the expectations of

the connected consumer.

THE DIGITAL BUSINESS

1. DIGITAL TRANSFORMATION

THE ENABLERS Openness Collaboration Leadership Resources

THE INHIBITORS Legacy - Systems & mindset Internal politics & silo thinking Egos & Self preservation Lack of understanding & expertise No “Customer Experience Officer”

80 20 10Sustaining business

as usualDeveloping and

guiding new ideas that come from the

10%

Trying new things Start small / Look for

ideas internally !

PRACTICE AGILE Hypothesise

Prototype (MVP) Test

Evaluate against data

2. EMBRACE the unknown NOW (RaTHER THAN ignoring it)

3. UNDERSTAND YOUR PURPOSE* THAT GUIDES

* “Visionary over commercial”

•Allows for focus and flexibility

•Use it to look for opportunity outside of your current product or service offering

•Use it to identify potential disruptor threats

OUR PURPOSE

3. UNDERSTAND YOUR PURPOSE THAT GUIDES

Amazon To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavours to offer its customers the lowest possible prices

Google To organise the world’s information and make it universally accessible and useful.

Nike To bring inspiration and innovation to every athlete* in the world. *”If you have a body, you are an athlete.”

Facebook To give people the power to share and make the world more open and connected.

4. START TAKING YOUR DATA SERIOUSLY

4. START TAKING YOUR DATA SERIOUSLY

•Active (data submission)

•Passive (sensors, tracking)

COLLECTLook for aimlessly wandering pockets of data that is collected and not used.

SHEPHERD

A DATA FRAMEWORK THAT RUNS ACROSS THE BUSINESS

4. START TAKING YOUR DATA SERIOUSLY

BE A PLATFORM Depending on the data, consider opening it up, enabling others to build (much better) experiences via your API. *

* The developer’s experience is an experience worth focusing on too.

YOU MAY BE DISRUPTED BECAUSE…•The barriers to entry for competition are lower than ever

before

•Your competitor set isn’t what it was yesterday

•Your customer experience sucks, and empowered people (the makers) create their own solutions (and value chains)

•You’re not flexible, adaptable, agile, open

•Your product/service strategy is based on the needs of your shareholders, not the needs of your customers.

@thescott SCOTT@QUIRK.BIZ

Thanks

Digital Disruption 101 Prescription•The Innovators Dilemma by Clayton M. Christensen - http://www.amazon.com/The-

Innovators-Dilemma-Revolutionary-Business/dp/0062060244

•The Capitalist’s Dilemma by Clayton M. Christensen and Derek van Bever - http://hbr.org/2014/06/the-capitalists-dilemma/ar/1

•The Next Disruption Where Digital Will Lead Us James McQuivey - http://youtu.be/yJ-L2IW5DaY

•Digital Isn't Software, It's a Mindset Aaron Dignan - http://99u.com/videos/23495/aaron-dignan-digital-isnt-software-its-a-mindset

•The Responsive OS Undercurrent - http://www.undercurrent.com/responsive-os + Responsive OS canvas: http://responsive.org/2014/05/introducing-the-responsive-os-canvas/

•On the Nature of Digital Transformation: 10 Observations - https://medium.com/business-startup-development-and-more/on-the-nature-of-digital-transformation-10-observations-9a889aa170d1

•New York Times Innovation Report - http://bit.ly/disruptionNYT

•Disruption Revolution - David Pasiak - https://www.disruptrev.com