DISRUPTIVE INNOVATION

Transcription

1 Incorporating DISRUPTIVE INNOVATION Into Your Strategy and Operations Mallie Rydzik, M.S. Business strategist and executive coach

2 Mallie Rydzik Helping entrepreneurs and small business owners step into a bigger role in their own companies Serial online entrepreneur Writing/editing, ecommerce/dropshipping, digital marketing, strategy & operations consulting agency Strategist, coach, speaker, authorin-progress Tornado scientist

3 THE DISRUPTION ECONOMY What It Is And Why You Should Care

4 The disruption economy is what has happened as we shift away from a manufacturing economy to a knowledge-sharing one. Jobs and companies are being replaced by technology, all while technology is creating new industries. The digital revolution has upended how we do business, both online and off. Millennials and Generation Z are entering the workforce with very different experiences and expectations about life and work. THE DISRUPTION ECONOMY

5 Disruptive Innovation Responding to disruption Creating disruption Colloquial Disruption Digital revolution THE DISRUPTION ECONOMY

6 Many researchers, writers, and consultants use disruptive innovation to describe any situation in which an industry is shaken up and previously successful incumbents stumble. But that s much too broad a usage. ~Clayton Christensen, HBR December 2015 DISRUPTIVE INNOVATION

7 Disruption describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. ~ Clayton Christensen, HBR December 2015 DISRUPTIVE INNOVATION PRIMER

8

9 Disruptive innovations originate in lowend or new-market footholds.

10 Lower quality AND Lower cost product or service -- Enters the low-end of an existing market OR Creates a new market WHAT IS A DISRUPTIVE INNOVATION?

11 Toyota? Tesla? Uber? Broke into the market with economy models then moved up market with luxury vehicles Initially: No Entered the market with luxury vehicles Now: Maybe Disrupted themselves with planned low cost offerings that are still high quality Disrupted an already lowmarket industry with a quality product to start

12 Kodak Simply extended its existing business model Responded too late Relied too heavily on one idea Didn t invest in startups - Scott Anthony, HBR Online 2012 THE DANGERS OF NOT HANDLING DISRUPTION

13 Respond to disruption Create disruption YOUR OPTIONS

14 RESPONDING TO DISRUPTION (Maintaining your sustaining innovation)

15 Anticipate Manage Lead THE DISRUPTION ECONOMY- RESPONSE FRAMEWORK

16 RESPONDING TO DISRUPTION Anticipate Manage Lead How far off is the disruption? What, if anything, might this mean for your business? Retaining flexibility while reaffirming your position Reposition your company as the leader in your market sector

17 CREATING DISRUPTION (Being The Change In Your Industry)

18 Project Customers Development HBR S DISRUPTION FRAMEWORK

19 CREATING DISRUPTION Create a new project, team, or department to focus on the new sector Figure out what customers need, then segment them by job Develop the low-cost solution Example: Crest White Strips

20 At the beginning of the digital camera disruption, it was easy to take a digital picture but much harder to turn digital files into physical prints. Kodak adapted its photo printer systems in an attempt to extend its razor blade business model by shifting from selling film to selling ink and paper. ~ The Prius Approach HBR Nov 2015 HYBRID APPROACHES

21 HYBRID APPROACHES The Prius Approach HBR November 2015

22 Respond Anticipate Manage Lead Disrupt (HBR) Project Customers Development Hybrid Approaches DISRUPTIVE INNOVATION

23 A LESS ACADEMIC APPROACH Colloquial disruption

24 Innovation New industries New markets Future-thinking Uber Tesla Apple COLLOQUIAL DISRUPTION

25 DIGITAL DISRUPTION Remote teams, online business, etc.

26

27 Innovate Launch Iterate THE DISRUPTION ECONOMY DIGITAL FRAMEWORK

28 The online business framework Innovate ahead of your competitors Launch a low-effort, low-cost product to test the market Receive feedback and iterate prior to the next launch cycle 8 week to 1 year timeline THE DISRUPTION ECONOMY DIGITAL FRAMEWORK

29 Mini Case Study: Melyssa Griffin Target: Women wanting to make money online with digital products and services. Offerings: Pinterest course $397 list building course $297 Social media course $37 Marketing: Blogging Social media Webinars Podcast guest Money: July 2015 revenue: $9,226 July 2015 profit: $7,900 July 2016 revenue: $102,132 July 2016 profit: $78,034

30 Derek Halpern, Social Triggers, Zippy Courses Marie Forleo, B School Kimra Luna, BTBY

31 Why do online businesses succeed? High margins Low overhead Global reach Flexibility Agility High traffic + 1% conversion = millions DIGITAL DISRUPTION

32 How can your company incorporate online business best practices? Automating processes with SaaS tools Remote work/team members Adding the personal touch to your branding Lifestyle benefits to attract tech-savvy Millennials DIGITAL DISRUPTION

33 Social media marketing Scheduling Bookkeeping Project management AUTOMATING PROCESSES WITH SAAS TOOLS

34 Tap into global talent Virtual assistants Project-based workers/freelancers Slack management Solid SOPs REMOTE WORK/TEAM MEMBERS

35 You don t have to be the face of your company (but you can be) People respond better to social media profiles with a face, not a logo Tongue-in-cheek or fun public responses Little touches that say we re not a big stuffy company ADDING THE PERSONAL TOUCH TO YOUR BRANDING

36 Millennials like everything mentioned above Life-work balance may be more important to some Millennials than money You don t have to be part of startup culture to attract quality talent Non-Millennials like having balance too! LIFESTYLE BENEFITS TO ATTRACT TECH- SAVVY MILLENNIALS

37 Respond Anticipate Manage Lead Disrupt (HBR) Project Customers Development Disrupt (Digital) Innovate Launch Iterate Hybrid Approaches WRAPPING UP DISRUPTION

38 You do have to play the game You do not have to jump ship Disruption is becoming more frequent Academic or colloquial disruption doesn t matter how you react does Always Be Closing Creating SUMMARY

39 @MallieRydzik THANK YOU