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5.5 - Coggle Diagram
5.5
Common patterns used for disruption
Combining Data within and Across Industries
Trading Data
Digitizing Assets
Codifying a Distinctive Service Capability
Augmenting Products to Generate Data
Combining the Other Five Patterns
the five patterns are a useful way to structure a conversation about developing new business ideas. But they point out that they also sometimes overlapped and were, in practice, being used by companies in combination.
Digital Twin
Common Models used for Disruption
Free offerings
– users have access to the service for free, although data is usually collected about them. The business model usually includes advertising revenue. Examples include Facebook and Google.
Freemium
- the user receives the basic product or service at no cost, but to get additional services and/or remove advertising etc, the customer needs to upgrade and pay. Examples include Spotify and LinkedIn.
Subscription
– the user pays a regular amount for ongoing receipt of goods or services, with the aim of tying the user into a long-term relationship. Examples include Netflix and Amazon Prime. Many consumer products organisations are also investigating or adopting this model.
Marketplace
– the users connect on a digital marketplace which brings together buyers and sellers. The business model includes brokerage, commissions or transaction fees. Examples include eBay and Amazon.
Sharing
- products or services purchased and available to user for a limited period. Examples include AirBnB and Uber (both could also be argued to be examples of a Marketplace).
Ecosystem
– the user can only buy products or services through a “locked-in” process from a defined set of sellers. Examples include Apple and Google app stores.
Delivering and managing disruption
Disruptors consciously ‘design for disruption’ by matching emerging technologies and new business models to market opportunities.
Organisations use a number of different approaches to do this.
Delivering emerging and disruptive technologies
According to Prof Christensen, successful disruptive innovations usually have three common attributes:
Enabling Technologies
an invention or innovation that makes a product more affordable and accessible to a wider population.
Innovative Business Model
a business model that (initially at least) targets new customers (who previously did not buy products or services in the given market), or low-end consumers (the least profitable customers).
Coherent Value Network
a network in which suppliers, partners, distributors, and customers are each better off when the disruptive technology prospers.
Approaches and techniques organisations use to identify, develop and deliver disruptions.
Designing for disruption
The emerging technology, business model and value network each need to be managed and developed ‘by design’.
Horizon and market scanning input into strategic planning
horizon and market scanning may help organisations to:
investment into further research and development of specific technologies to verify threats and/or opportunities
acquisitions of companies with specific intellectual property and/or technological capability
strategic partnerships or alliances with other organisations
acceleration of commercialisation of specific emerging technologies to combat threats and/or develop opportunities
organisational and business models change.
Identifying opportunities for disruption
Market pull, technology push and 'visionary' approaches
Technology Push
occurs when a new technology is created from a new idea or discovery, rather than in direct response to a specific need.
Visionary Approaches
organisations sometimes design and develop emerging technologies to take to market when they’ve not yet received any direct customer demand for them.
they do this because a ‘visionary’ individual, business unit or company perceives a disruptive opportunity might exist.
Market Pull
AWS is a very good example of market pull.
The innovative technology developed for automation and hardware sharing was driven by a demand for faster provisioning of IT resources.
based upon the issues, challenges and/or opportunities identified by customers, organisations or whole industries.
Open innovation and collaboration
Design thinking and agile approaches
Design thinking
"Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success."
Tim Brown, Executive Chair of IDEO
Primary stages of the DT process Cycle:
Define
Define and understand the problem/challenge/opportunity.
Ideate
Generate diverse ideas.
Analyse and prioritise.
Develop selected ideas.
Empathize
Understand sponsors and end users.
Prototype
Quickly build prototypes.
Develop commercials
Test
Test, prove and enhance.
Repeat iteratively as needed.
Agile approaches
The key principles of an agile approach include:
focus on user needs
deliver iteratively
keep improving how your team works
fail fast and learn quickly
keep planning.
Due to the focus on user needs and iterative delivery, agile approaches are complementary to design thinking.
For example, the outputs of design thinking work are often input into agile software development ‘sprints’.
Agile Scrums
‘scrum’ is an agile process framework for managing complex work, such as software development.
it uses a set of tools and techniques. The scrum also defines a set of roles in the team.
Agile Sprints
‘sprint’ is a short, time-boxed period when a scrum team works to complete a set amount of work.
The objective of the sprint is to deliver the most that can be achieved to address the sprint goal in the agreed timeframe.
Once complete, a new sprint goal will be agreed for the next sprint and so on