Digital Disruption: From Zero to Sixty
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Transcript of Digital Disruption: From Zero to Sixty
A STRATEGIC BRIEFING
Digital Disruption from Zero to SixtyWith Neel Banerjee of Urban AirshipAnd Gene Ehrbar of ISITE Design
WENDESDAY, MARCH 19th AT 2PM EST.
In this briefing, you will learn:
1. What is Digital Disruption?2. Why are customer-focused ideation techniques
critical for driving new product development?3. How can enterprise organizations foster
collaborative innovation teams across the company?
Hello and Welcome!
Our flight plan for today:
• A Brief History of Innovation• Digital Disruption: Phenomenon, Practice, Mission• Q&A
Agenda
(per Clayton Christensen, 1995)
Innovation that creates a new market or value network, disrupting an existing market, and displacing an earlier technology.
Disruptive Innovation
(per James McQuivey, 2013)
Innovation in an existing market that uses digital tools, methods, and infrastructure to fundamentally alter the delivery of a product or service, undercutting incumbent companies in the process.
Digital Disruption
Why has Digital Disruption emerged?
• Free/cheap digital tools• Radically reduced infrastructure costs• Overall reduced cost to engage customer
Net result: small, new upstarts can compete with established market leaders quickly.
Digital Disruption: As a Phenomenon
Image: James McQuivey, “Digital Disruption”
Return on Innovation
Digital Disruption leverages efficiencies to magnify the impact of innovation efforts.
Then vs. NowDisruptive Innovation Digital Disruption
Product-Centric Customer-Centric
Expensive, risky, slow-to-market
Cheap, low-risk, fast-to-market/fail
Take hold in niche markets first Can impact mainstream quickly
Long product-development cycles
Rapid ideation, iteration, delivery, and optimization
Fax machineMobile phoneEmail
iOS app marketSharing economy (Uber, AirBnB)Crowdfunding
How can you achieve digital disruption and harness its power?
Digital Disruption: As a Practice
• “Build stuff customers actually want.”• “Innovate the Adjacent Possible.”• “Build. Test. Learn.”• “Avoid holding innovation efforts to executional
standards.”
Process:
• Start with market problem / user problem• Use real customers — don’t make them up• Create personas from real customers, and
determine their motivations, passions, needs, wants
• Get out of the office
Start with the Customer
• For engineers and product designers, it can be difficult to separate the problem from the solution.
• By following the Customer->Benefit path, we avoid settling on solutions prematurely
Determine Benefit
• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”
• Not necessarily linear, or obvious• Expand step by step through adjacent
possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product
The “Adjacent Possible”
• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”
• Not necessarily linear, or obvious• Expand step by step through adjacent
possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product
The “Adjacent Possible”
“Fitbit for cars”
• Commodity OBD-reader hardware
• Commodity smartphones• Disruptive synthesis
Example: Dash
Revolutionizing Transit Payments
• First system-wide mobile pay-and-use
• Leveraging commodity smartphones
• Collaborative design/build process
Example: Globesherpa
How can you convince your organization to try this?
• Larger organizations naturally more risk-averse, wary of premature sharing of results with customers.
• On the contrary, iteration & rapid prototyping can be seen as risk mitigation techniques — lowered initial cost, faster results, shorter path to validation.
• Keep teams small• Cross organizational boundaries• Resist holding innovation efforts to executional
standards.• Disrupt or be disrupted
Digital Disruption: As a Mission
• Digital Disruption is happening right now, in every industry
• The competitive landscape has been completely reshaped by the emergence of Digital Disruption
• Companies of all types can use disruptive techniques to improve their customer experience
• Lean Startup and Design Thinking methodologies can help inform disruptive efforts
• Becoming a disruptive company requires a deliberate effort, that is likely outside of the usual scope of operations for enterprise companies
Summing up…
Download a free ideation template at http://isitedesign.com/disrupt
Thank you!
Gene Ehrbar@pdxgene
Neel Banerjee@nbanerjehttp://urbanairship.com