SUMMARY TABLE OF
KEYPOINTS OF
THE TWO DIFFERENT FORMS OF INNOVATION
(Disruptive / Sustaining),
with which it is possibile
TO ASSESS WHICH FORMS OF INNOVATION
ARE PRESENT IN EVERY BUSINESS
.
● In the current Market phase, Disruptive innovation is not an option – see Why today it is necessary to develop disruptive 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 – see The failure of Hybrid innovation (Disruptive + Sustaining Innovation)
● 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 Be careful: most successful companies are not real innovators (disruptive innovators)
.
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 ]
la table copiala dal post test
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SUSTAINING |
DISRUPTIVE |
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BUSINESS STRATEGIES |
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COMPANY FOUNDATIONS (premises) |
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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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BUSINESS MODEL / STRATEGIC PRINCIPLES i |
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MARKET SECTOR SEARCH to enter problem: makes it impossible to see the opportunities to create a new sector |
i CREATE A NEW SECTOR (transforming niches of non-consumption practices)) > Disruptive Innovation is a leap that eliminates the current Market sectors To be First Mover |
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Enter the market to BEAT THE COMPETITION problem: the concept of the offer is limited by current competitors ● win-lose situation |
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 problem: “war” approach in conflict with the holistic mindset needed to develop D.I. |
OPEN MARKET Open Source 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 problem: stuck in a situation of mindset and structures unable to tune in to the new Demand |
FREE FROM TIES WITH GOVERNMENT However, there is a need to develop strategies to neutralize the protection laws of consolidated Businesses > Why the “joint” between Business and Public Institutions can no longer work |
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PRODUCT MARKETING |
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IMPROVEMENT OF EXISTING PRODUCTS 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. problem: the ability to conceive radically new products is lacking (the Marketers are not able to replace the Entrepreneurs they have replaced) > The Production of the future is not an improvement of the current ones |
CREATE NEW PRODUCTS FROM SCRATCH Non-consuming niches to be transformed into Business are identified |
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“IMAGINARY” VALUES , Avatar Products, frivolity, satisfaction on an emotional level are preferred. problem: Managers and Designers live in an imaginary world that the new Demand, with urgent and substantial needs, no longer accepts |
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. problem: it is not possible to satisfy a new demand with subtle and inescapable needs |
i IDEAS ARE DEVELOPED 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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INDUSTRIAL PLAN > DESIGN / PRODUCTION / DISTRIBUTION |
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COMPLEX INDUSTRIAL PLAN to be developed problem: startupping with high costs and long times (even for a single product) |
i EASY STARTUPPING Rapid and cheap startupping. ● time to market: creating production line On Demand > Towards a New Marketing (1): beyond the |
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CLOSED RIGID BUROCRATIC STRUCTURE problem: Closed organizational systems of “burocratic” structure is too rigid to allow those with new ideas to develop them. And it is too rigid to adapt to the changing market. |
OPEN STRUCTURE The Etreprenurial approach allows you to make the most of people’s talents (also from outside) and to be able to follow the rapid evolution of the market. |
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DESIGN TOP-DOWN DESIGN takes on the meaning of STYLING (appearance, Status symbol, …) problem: the design is disconnected from real needs to be met |
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 problem: impossibility of developing the greatest value for “localization” and customization of the product required by the new Demand > 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 problem: impossibility of creating the new network modalities necessary to develop Disruptive Innovation |
i OPEN VALUE WEBS, a Connected eco-system that integrates every possible professional operator (and Customers). |
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GLOBAL BUSINESS LOGISTIC Centralized production involves TRANSPORT AND INTERMEDIATION |
i 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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DECLINATIONS OF EXISTING PRODUCTS ARE CREATED problem: there is no possibility of developing “revolutionary” products |
i Invention of a NEW OFFER FROM SCRATCH ● literally a “New Thing” (which substantially change the life of the User) |
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QUALITY FOR THE CUSTOMER |
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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 |
i REAL NEEDS OF PEOPLE already highlighted by non-consuming new Practices The Product is developed starting from the real needs of the People. The creator of the product is himself a User or has an entrepreneurial mindset that allows him to empathize with the 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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LOW PURCHASE COST ● new methods of production and disintermediation |
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iAFFORDABLE MANAGEMENT & MANTEINANCE COSTS/LONG DURABILITY ● DURABILITY (robustness, upgradeability and expandability) > °Beyond the Planned obsolescence, towards a long/endless durability |
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i SCALARITY OF 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 PEER2PEER/SHARABLE – integrated in a Collaborative Products/Systems The Value of a Product will depend on its COLLABORATIVE AND SHARABLE QUALITIES > “Il Car Sharing 2.0 – Personal-Multimodal-Sharing/Pooling” |
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ELIMINATION OF THE CUSTOMER EXPERIENCE in order to have greater control over the behavior of the Customer. |
CONSTRUCTIVE CONSUMER EXPERIENCE (and FRIENDLY UX) Interaction with the product (with the Company) that allows the Customer to exert control of the processes and awareness of the choices |
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PRODUCT OBJECTIVE QUALITIES |
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iCONSUMER TECHS: 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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iINTEGRATED IN ECOSYSTEM OF PRODUCTS ● new range of products |
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iCUSTOMIZABLE/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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iMAKERS/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”≈ |
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