Guidelines [3]: COMPARATIVE TABLE of Keypoints of Disruptive/Sustaining Innovation

SUSTAINING
Points  i

DISRUPTIVE
Points  i

BUSINESS MODEL / STRATEGIC PRINCIPLES   i

Driver
/
Enabler

The driver is the drive for profit
The enabler is the money

The driver is the perception of unresolved needs
The enabler is the Customer Technology

Business
structure

i PHILOSOPHY OF FINANCIAL CAPITALISM – Money is the End

The “System” of Finance Capitalism is the property and the guide of the Company (through the Managers)

ENTREPRENEUR MENTALITY – Vision driven Business

The driver is Talent of Entrepreneur &
Needs (of People)

> The Entrepreneur’s DNA

Profit

i FINANCIAL PROFIT DRIVEN DECISION-MAKING

Business first of all profit oriented (Quality is secondary)

> Paradoxically putting the focus on profits the profits end up ending

i  PURPOSE BUSINESS in which it aims to offer wellness to the Customer

That Wellness affects a general quality of life

Paradoxically, today the profit,
although not primary, is greater.

> Decalogue of Rules: Business as Mission

Market
sector

MARKET SECTOR SEARCH to enter

i CREATE A NEW SECTOR (transforming niches of non-consumption practices))

> Disruptive Innovation is a leap that eliminates the current Market sectors

Position
with
respect
to the
Competit.

You enter the market to BEAT THE COMPETITION

The definition of the offer is based on
competition (ie on a Market where there are already active Customers).

● win-lose
situation

THERE IS NO COMPETITION, but players with which to integrate.

A new market niche is created where
there are no Competitor (one is First Mover). The other players are the
opportunity to integrate the Product into an eco-system that increases
the value of its Product.

● win-win situation

> Monopoly and Competitors

Macro
–
strategies

i tendency to MONOPOLY: eliminate competition

OPEN MARKET

Open Soruce with new Revenue models, also for Hardware, Franchising production.

In the most mature phase: Open
Source Market (non-Profit / Profit)

> The need to recover the awareness of
the meaning of the Business Model

> “Manufactory 4.0 e
Franchising-Transplant Factories

Relations
with
Institut.

i CRONYSM: strategies agreed with Government for protection and business support

> CRONYSM – “synergies” with the Government

FREE FROM TIES WITH GOVERNMENT

> Why the “joint” between Business and Public Institutions can no longer work

PRODUCT MARKETING

Qualities
of Product

IMAGINARY QUALITIES that can be conveyed by advertising.

It starts with an analysis of Big Data and the “creativity” of the Marketer that allows the Company to create qualities that touch the imagination of people.

The Customers are induced by the
Marketing to appreciate these qualities.

> Business problems: the difference between original and current marketing

> A new role for Advertising: the need for disruptive innovation of the Model

> The wrong interpretation of the Customer Experience

NEEDS OF PEOPLE already highlighted by non-consuming new Practices

The Product is developed starting from the real needs of the People.

> Why Hi-Tech and disruptive innovation are incompatible (the “Human factor”)

> New modality of Consumerism: the New Demand (Key of Changes #2)

Product
developing

DECLINATIONS OF EXISTING PRODUCTS ARE CREATED

The process is the reverse of Supply and Demand. Here the purchase reasons are created a posteriori: the product is developed according to what is appropriate for the Company.

> Sustaining Innovatios ad improvement of product

They develop QUALITIES THAT SATISFY PEOPLE’S NEEDS

An offer is developed that is more general than a specific product and transversal to the target.

The Product is integrate in an ecosystem

> The need of an Ecosystem of Innovation

Value
propos.

“IMAGINARY” VALUES , frivolity, satisfaction on an emotional level are preferred.

> ‘From frivolity to sustainability’

i UTILITY-VALUE – the
Customer with the Product is able to DEVELOP PRACTICES WHICH SUBSTANTIALLY IMPROVE THE QUALITY OF ITS LIFE.

It must also be able to “invent” new ways of
use.

> A new Value proposition: the problem of ethical (ideological) values

Marketing

● TOP-DOWN “INVENTED” PRODUCTS FROM MARKETERS WHO HAVE NO EMPATHIC RELATIONS WITH CUSTOMERS

● i INDUCTION AT THE EMOTIONAL PURCHASE

Marketing basically becomes advertising.

PRODUCTS ARE DESIGNED IN A STRONG COLLABORATION WITH THE USER (or the Startupper is itself a User).

Marketing returns to being the WAY TO BRING
THE PRODUCT OF WHICH THE CUSTOMERS REALLY NEED TO THE MARKET.

● we no longer invent needs, but
“discover” needs to be met, with an empathic approach

> Innovation is intrinsically (historically) bottom-up

DESIGN / PRODUCTION / DISTRIBUTION

Design

DESIGN TOP-DOWN, disconnected from real needs to be met DESIGN takes on the meaning of STYLING (appearance, Status symbol, …)

BOTTOM-UP DESIGN, participatory design

Co-design. Design is subject to function
(job-to-be-done for the Customer)

> Towards a New Marketing (1): beyond the
Analytic Marketing, toward a pro-sumer Market

> Crowd participated Marketing

Production

CENTRALIZED PRODUCTION – Industrial Production

● Mass products

> The need for a new generation of automation (Human Oriented Automation)

DISTRIBUTED MANUFACTURING – Decentralized (Local) manufacturing, Proxymity production

● “Ad hoc” production (customized
production)
● Franchise production
● From Global to Glocal
● a new type of Automation

> Towards a radically new model of Industry 4.0: introduction to a Smart Fabrication plan

Prod.:
value
chain

VALUE CHAIN, linear development, top-down controlled

> Beyond the Value chain

VALUE WEBS, a Connected eco-system that integrates every possible professional operator and every Customer.

> Value Webs– change in partnership relations

> Value Web: Value Chain of new generation

Distrib.

Centralized production involves TRANSPORT AND INTERMEDIATION

In the PROXIMITY BUSINESS, with on-site production, there is an ABSENCE OF TRANSPORT (costs and pollution) and DISINTERMEDIATION

IMPROVEMENT OF EXISTING PRODUCTS

> The Production of the future is not an improvement of the current ones

i   Invention of a NEW OFFER FROM SCRATCH

● literally a “New Thing” (which substantially change the life of the User)

PRODUCT QUALITIES

i   Consumer tech: Disruptive innovation (non-over-serving tech/at affordable price) requires established techs (low-cost). Such techs are also easy to assemble into the product.

> The Over-serving/Under-serving problem of the Incumbents

> Why Hi-Tech and disruptive innovation are incompatible (the “Human factor”)

i   SCALARITY OF THE SOLUTION (gradual upgradability)

The Customer can purchase the product in a minimum configuration and then, over the years, improve its capacity.

i   AFFORDABLE MANAGEMENT/MANTEINANCE COSTS

● DURABILITY (robustness, upgradeability and expandability)
● CONSISTENTLY LESS CONSUMPTION THANKS
● DO IT YOURSEF MAINTENANCE/REPAIR

> °Beyond the Planned obsolescence, towards a long/endless durability

> Sustainable Innovation

i   Collaborative Products/Systems (Sharing)

The Value of a Product will depend on
ITS COLLABORATIVE AND SHARABLE QUALITIES

> “Il Car Sharing 2.0 – Personal-Multimodal-Sharing/Pooling”

i   INTEGRATED IN ECOSYSTEM OF PRODUCTS ● new range of products
● pre-existing product catalog
● established products on the Market
● non-consumer practices (DIY products)

> The need of an Ecosystem of Innovation

i   CUSTOMIZABLE/EVOLVING PRODUCTS

– Adaptability with respect to the local context

– Adaptability with respect to the specific Customer

> Beyond the Integrated Architecture: the Modular Architecture

i   MAKERS/PROXIMIITY BUSINESS READY product (Makers like Production)

An evolution of Transplant production, developed thanks to the new “Makers tools”, IoT and ICT.

The product must be compatible with these processes, and be manageable with a low level of skills from local workshops.

> “New Production / Distribution methods: Franchising-Transplant Factories”≈