
- Guidelines [1]: Basic Q&A on Disruptive innovation
- Guidelines [2]: WHAT IS and WHAT IS NOT Disruptive innovation
- Decalogue of Rules of Disruptive innovation
- Guidelines [3]: COMPARATIVE TABLE of Keypoints of Disruptive/Sustaining Innovation
Summary table of the keypoints of the two different forms of innovation, with which it is possible to assess which forms of innovation (Disruptive / Sustaining) are present in every business.
● The failure of Hybrid innovation (Disruptive + Sustaining Innovation) In a Disruptive innovation strategy, when even just a part of the “old rules” is introduced, conditions are created for this strategy to be a failure.
● Be careful: most successful companies are not real innovators (disruptive innovators): most of the Companies that are successful today, developing what appears to be Disruptive Innovation, actually develop Sustaining Innovation. So their success is not meant to last long.
See other documents integrated in the “Guidelines for an analsysis of Business innovation” system
● [1]: Basic Q&A on Disruptive innovation
● [2]: What is and what is not Disruptive innovation
[ the table is in progress – most of the contents are not yet published ]
SUSTAINING |
DISRUPTIVE |
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BUSINESS STRATEGIES |
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BUSINESS MODEL / STRATEGIC PRINCIPLES i |
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The driver is the drive for profit |
The driver is the perception of unresolved needs |
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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 & |
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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, |
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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 |
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You enter the market to BEAT THE COMPETITION The definition of the offer is based on ● win-lose |
THERE IS NO COMPETITION, but players with which to integrate. A new market niche is created where ● win-win situation |
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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 > The need to recover the awareness of |
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i CRONYSM: strategies agreed with Government for protection and business support |
FREE FROM TIES WITH GOVERNMENT > Why the “joint” between Business and Public Institutions can no longer work |
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PRODUCT MARKETING |
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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 > Business problems: the difference between original and current marketing > A new role for Advertising: the need for disruptive innovation of the Model |
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) |
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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. |
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 |
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“IMAGINARY” VALUES , frivolity, satisfaction on an emotional level are preferred. |
i UTILITY-VALUE – the It must also be able to “invent” new ways of > A new Value proposition: the problem of ethical (ideological) values |
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● 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 ● we no longer invent needs, but |
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DESIGN / PRODUCTION / DISTRIBUTION |
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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 > Towards a New Marketing (1): beyond the |
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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 > Towards a radically new model of Industry 4.0: introduction to a Smart Fabrication plan |
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VALUE CHAIN, linear development, top-down controlled |
VALUE WEBS, a Connected eco-system that integrates every possible professional operator and every Customer. |
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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 |
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THE PRODUCT |
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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) |
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PRODUCT QUALITIES |
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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”) |
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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. |
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i AFFORDABLE MANAGEMENT/MANTEINANCE COSTS ● DURABILITY (robustness, upgradeability and expandability) > °Beyond the Planned obsolescence, towards a long/endless durability |
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i Collaborative Products/Systems (Sharing) The Value of a Product will depend on > “Il Car Sharing 2.0 – Personal-Multimodal-Sharing/Pooling” |
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i INTEGRATED IN ECOSYSTEM OF PRODUCTS ● new range of products |
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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 |
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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”≈ |
Manual Related Posts
- Today, the many failures derive precisely from the lack of understanding of the essence of Disruptive innovation: The purpose of the Guidelines is to CLARIFY WHAT THE DISRUTPIVE INNOVATION REALLY IS. You can easily evaluate THE RESPONSE OF A BUSINESS TO THE RULES OF THE DISRUTPIVE INNOVATION
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