© 2008 Deloitte Touche Tohmatsu

Disruptive InnovationHow to find the small bets that lead to big wins…

© 2008 Deloitte Touche Tohmatsu© 2008 Deloitte Touche Tohmatsu

Housekeeping

• Turn phones on• Stick them on silent• Tweet the interesting stuff• Use #ACBC11• Refer to me as @rexster

• Pay attention as Disruption Can Kill You

2 GIN | 2009 Live Meeting

3

What do most people think about innovation?

Where it Started

4GIN | 2009 Live Meeting

Disruptive Innovation

"Generally, disruptive innovations were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream."

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Angioplasty vs. bypass surgery

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Sources: Thomas Thom, National Heart, Lung and Blood Institute; Gautam Gowrisankaran, Washington University in St. Louis; Salim Yusuf, McMaster University, The Interheart Study; as reported in National Geographic, February 2007

BalloonAngioplasty

BypassSurgery

Heart attackdeaths

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1980 1985 1990 1995 2000 2004

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pop

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tion

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New market disruption: No more heartache

Effectiveness

Time

CostInvasivenessRisk

Time

Cardiac surgery

Angioplasty

Differentbasis ofcompetition

Overshoot

Foothold

Upmarket march

Basis of competition

Disruption

Can you spot disruption?

Give me some examples from history or today’s newspaper

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Good Enough … not necessarily better, but different

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The web is dead? Long live the web

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Apple – Lessons in Disruption

The iPod + iTunes + Content disrupts Music

The iPod Touch sustains innovation and enables

The iPhone + Developer Crowd which disrupts the dumb phone market and enables

The iPad which will disrupt the PC/Mac market

Adds movie content and kill video shops while we are at it

ClomosodaCloud + Mobile + Social + Data

Major trends in a word

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The Crowd

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24 Sustaining Innovation in Large Organisations

© 2007 Deloitte Touche Tohmatsu Ltd

Innovation happens at Intersections - eMue

Industrial Designer

Former Chief Security Officerof Westpac

Mutual Authentication Solution that addresses Identity Theft &

Fraud

25 Sustaining Innovation in Large Organisations

© 2007 Deloitte Touche Tohmatsu Ltd

Prototyping – Putting these components….

26 Sustaining Innovation in Large Organisations

© 2007 Deloitte Touche Tohmatsu Ltd

Into this….

This….

27 Ideas at Work – Minimising the cost of evaluation & testing

© 2007 Deloitte Touche Tohmatsu

Happy Days

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How fast does can disruption happen?

Performance

Time

Process technologies

Mechanicaltechnologies

GeneticsNanotechRobotics

Three points to remember

Think Big

Bet Small

Be Disruptive

Takeouts

Have your strategic radar on for both risk and opportunities

Technology doesn’t standstill, it goes on an upward march

Get in early and prototype, be good enough

You don’t need to bet the farm but you have to drive upward

It is the business model + the tech

Who is the Home Brew Computer Club in your industry?

Don’t apply business processes of today when playing in the Innovation space