incorporating disruptive innovation - building …€¦ · · 2016-10-27disruptive innovation...
TRANSCRIPT
DISRUPTIVE INNOVATION
Incorporating
Mallie Rydzik, M.S.Business strategist and executive coach
www.MallieRydzik.com
Into Your Strategy and Operations
• 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, author-
in-progress
• Tornado scientist
THE DISRUPTION ECONOMY
What It Is And Why You Should Care
THE DISRUPTION ECONOMY
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
Disruptive Innovation
Responding to disruption
Creating disruption
Colloquial Disruption
Digital revolution
DISRUPTIVE INNOVATION
“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 PRIMER
“‘Disruption’ describes a process whereby a
smaller company with fewer resources is able to
successfully challenge established incumbent
businesses.”
~ Clayton Christensen, HBR December 2015
https://hbr.org/2015/12/what-is-disruptive-innovation
“Disruptive innovations originate in low-
end or new-market footholds.”
WHAT IS A DISRUPTIVE INNOVATION?
Lower quality
–AND–
Lower cost product or service
--
Enters the low-end of an existing market
–OR–
Creates a new market
Toyota? Uber?Tesla?
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 low-
market industry
with a quality
product to start
THE DANGERS OF NOT HANDLING
DISRUPTION
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
YOUR OPTIONS
Respond to disruption
Create disruption
RESPONDING TO DISRUPTION
(Maintaining your sustaining innovation)
THE DISRUPTION ECONOMY-
RESPONSE FRAMEWORK
Anticipate
Manage
Lead
RESPONDING TO
DISRUPTION
Anticipate
How far off is the disruption?
What, if anything, might this mean for your business?
Manage
Retaining flexibility while reaffirming your position
Lead
Reposition your company as the leader in your market sector
CREATING DISRUPTION
(Being The Change In Your Industry)
HBR’S DISRUPTION FRAMEWORK
Project
Customers
Development
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
HYBRID APPROACHES
“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
“The Prius Approach”
HBR November 2015
DISRUPTIVE INNOVATION
Respond
Anticipate
Manage
Lead
Disrupt (HBR)
Project
Customers
Development
Hybrid Approaches
A LESS ACADEMIC APPROACH
Colloquial disruption
COLLOQUIAL DISRUPTION
Innovation
New industries
New markets
Future-thinking
Uber
Tesla
Apple
DIGITAL DISRUPTION
Remote teams, online business, etc.
THE DISRUPTION ECONOMY – DIGITAL
FRAMEWORK
Innovate
Launch
Iterate
THE DISRUPTION ECONOMY –
DIGITAL FRAMEWORK
“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
Mini Case Study: Melyssa Griffin
Target: Women wanting to make money online with digital products and services.
Offerings:
• Pinterest course $397
• Email 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
Derek Halpern, Social Triggers,
Zippy Courses
Marie Forleo, “B School”
Kimra Luna, BTBY
DIGITAL DISRUPTION
Why do online businesses succeed?
High margins
Low overhead
Global reach
Flexibility
Agility
High traffic + 1% conversion = millions
DIGITAL DISRUPTION
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
AUTOMATING PROCESSES WITH SAAS
TOOLS
Social media
Email marketing
Scheduling
Bookkeeping
Project management
REMOTE WORK/TEAM MEMBERS
Tap into global talent
Virtual assistants
Project-based workers/freelancers
“Slack” management
Solid SOPs
ADDING THE “PERSONAL TOUCH” TO
YOUR BRANDING
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”
LIFESTYLE BENEFITS TO ATTRACT TECH-
SAVVY MILLENNIALS
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!
WRAPPING UP DISRUPTION
Respond
Anticipate
Manage
Lead
Disrupt (HBR)
Project
Customers
Development
Innovate
Launch
Iterate
Disrupt (Digital)
Hybrid Approaches
SUMMARY
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
