Market sectors
are not changing quickly,
BUT THEY ARE CHANGING IN A DISRUPTIVE WAY
In disruptivity there is no change in the current sectors of the Market, but there is the replacement of one sector by another (completely new).
That is,
disruptive innovation literally creates new sectors.
And it eliminates the pre-disruption sectors (they are the “dinosaurs” that periodically the development of human civilization leads to extinction: as it was for the airship, which gave way to airplanes).
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The automotive sector is probably the most significant example of this disruption.
<see The new direction of the innovation (in particular for the Automotive)>
<see A Fork of the Automotive Market >
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Automotive OEMs today represent precisely the wrong attitude with respect to the demands of the new Disruptive innovation Market. In fact, in contradiction with the most basic rules of disruptive innovation, they continue to develop “technological solutions” for the Automotive sector: but disruptive innovation does not consist in improving the features of pre-disruption products.
Disruptive innovation consists of
completely creating new products.
Until now, these obsolete strategies have worked: embedded technologies in cars have been used profitably by Marketing as a sales argument (although they did not provide really useful results for the Customer that justified the price).
In reality there is no choice for Customer: most of the them are no longer able to spend on new “technological products” due to the economic crisis.
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So today customers are no longer willing to pay for “technological improvements”, when the mobility offered to them is actually in continuous deterioration: in daily life, travel times – in the City, where we move for the most part of the time – routes are always slower (and it is increasingly difficult to find parking).
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It can be said that
the increasingly rapid evolution of the Automotive sector,
paradoxically,
PRODUCES AN ALWAYS MORE QUICK DROUGHTING OF MOBILITY.
Some of the errors – fatal – committed today
Some of the mistakes made by automotive technology Manufacturers:
► the technologies embedded in the Automobile do not evolve into a disruptive dimension. We sell technologies with “futuristic performance”, but, for example, we do not create really useful devices like automatic speed limiters (which would cost a few dollars) that react automatically with respect to the limits imposed on road sections. <see Beyond the focus on futurist goals >
► OEMs should put their focus more on software components, which increase the vehicle’s smartness towards a real improvement in Mobility (for example, they should support sharing and pooling). In this way, among other things, the costs of the new features would be greatly reduced.
► OEMs are not able to exploit their properties, which is the right one to create new forms of truly disruptive personal mobility. They could, in fact, following the new Value Webs trend, create a network of producers to develop lighter and more efficient vehicles than cars (in the new dimension of the widespread Production Market they could, by integrating their activities, create the components of a vehicle-system).
<see The misunderstanding on Industry 4.0: towards Manufacturing 4.0 >
<see also the case of “LiteMotive: the new future of Mobility”>
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Note the contradiction in trying to improve pre-disruption products by adding to disruptive technologies (see the Disruptive Innovation rules in .Decalogue of Rulesof Disruptive innovation>. The fact is that
The technologies
cannot be disruptive in themselves
Them can only be enablers
of a disruptive innovation offer.
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So let us analyze some of the fatal errors that put the Incumbents out of the market with regards to innovation in general.
Let us first remember that disruption is not something that has been decided by someone, but a necessity that periodically emerges in history.
Disruptive innovation today is precisely the ability to satisfy the new Demand linked to the disruption in progress.
More specifically, today, if we want to sell our products, we have to abandon the mindset of the current Marketing which places the focus on the “buying impulse” (since the Customers can no longer buy products that are not for them really useful). And should begin to develop radically new products that offer the Customer a “service” that solves problems it encounters in its daily life [ see, for example, the concept of Clayton Christensen’s Job-to-be-done in “Competing Against Luck”]
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These Market errors are, among others:
● Electrification – it is perhaps the most obvious mistake of Player Automotive: a “technologization” of an existing product does not create attractive products for Customer <see Disruptive innovation is not based on technologies>
● Shared mobility – this error reveals in particular how the Incumbents Market has remained attached to an obsolete mindset.
The first problem that appears is the classic one of the Ideologies (enslavement to an idea, which leads to an attempt to “normalize” Culture, in order to defend the acquired positions): today the term Sharing is used instead of Rental. Thus producing a serious misunderstanding about the Sharing trend (one of the factors that make the development of a real innovation of Mobility impossible).
If we refers to the original (actual) meaning of Sharing, it appears for example how the Automobiles should, in order to follow this trend, favor a purchase and use “in community” (in sharing).
● Connectivity – today there is also a profound equivocation on the concept of connectivity. In reality, the connection of vehicles must be a connection “with the world”: the Vehicle must be an element not only strongly integrated with the urban Mobility system: but also with the entire Ecosystem-City (for example, each vehicle must be connected also pedestrians, bicycles, etc …). <see the section in LiteMotive site>
<see “misundertanding : CONNECTED CITY (connected vehicle)“ in “Mobility 2.0 – White Paper: why the failure of Mobility”>
● Artificial Intelligence – The biggest problems whit to A.I. are:
– The concept of Artificial Intelligence (autonomous decision making) is confused with that of supported decision system. Because of this we define products that in an age were looking for a real sustainability, affordability, are not feasible.
< see The misunderstanding on Artificial Intelligence: why AI cannot be the future of innovation>
– the AI. is a developing technolgy, which are incompatible with disruptive innovation (which is based on consumer technologies, and not Hi-Tech) <see .Why Hi-Tec and disruptive innovation are incompatible (the “Human factor”) >
A real innovation (appealing to Customers) is not based on Autonomous Vehicle. But on vehicles radically different from the current ones (with many Artificial Intelligence functions now used for Autonomous Vehicle prototypes).
This applies, for example, also to the question of improving batteries and extending public charging stations: these too are developing Technolgies, and products and disruptive innovation can resolve “human problems” with consumer technologies right now.
