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Are You Ready to Disrupt It?’ is a unique knowledge safari into the wilderness of a new type of innovation which has emerged in the business world as well as in the research arena: Disruptive Innovation. The book is the culmination of a project by The EU Disrupt-IT project consortium, reflecting the collaboration of experts from 6 countries. The consortium was formed in 2002 to develop a methodology and supporting software for enabling and catalysing the creation of new products, services and business models which have the potential to disrupt their markets. The book conceptually clarifies some of the phenomena related to the realities of disruptive innovation, like: “Low-end” market vs. New market disruptive innovation Technological vs. Business Model disruptive innovation The challenge of “Crossing the Chasm” The book offers a comprehensive toolkit to foster disruptive innovation: this includes a “Knowledge Safari”, “Idea Pipeline software”, a “Disruptive Portfolio Management Tool”, an “Opportunity Recognition Workshop”, the “DI Compass” and an “Innovation Ecology Portal”. Detailed descriptions of real case studies complemented by a utopian urban story enrich the concepts and make the complex and intangible ideas come alive. The lively graphics and illustrations that enrich the insights in the text reflect the consortium’s philosophy that visualisation is an effective method of conveying, and absorbing, new ideas. The Disrupt-IT project was co-funded by the European Commission Information Society Technology (IST) programme, which is a fertile ground for leading edge Knowledge Management research.
Citation preview
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
ARE YOU
READY TO
An Illustrated Guide to Disruptive Innovation
ARE YOU
READY TO
An Illustrated Guide to Disruptive Innovation
Edited by:
Ron Dvir Fiona Lettice Pete Thomond With Carol Webb Illustrations by Arye Dvir
‘Are You Ready to Disrupt It?’ is a unique knowledge safari into the wilderness of a new type of innovation which has emerged in the business world as well as in the research arena: Disruptive Innovation.
The book is the culmination of a project by The EU Disrupt-IT project consortium, reflecting the collaboration of experts from 6 countries. The consortium was formed in 2002 to develop a methodology and supporting software for enabling and catalysing the creation of new products, services and business models which have the potential to disrupt their markets.
The book conceptually clarifies some of the phenomena related to the realities of disruptive innovation, like:
“Low-end” market vs. New market disruptive innovation
Technological vs. Business Model disruptive innovation
The challenge of “Crossing the Chasm”
The book offers a comprehensive toolkit to foster disruptive innovation: this includes a “Knowledge Safari”, “Idea Pipeline software”, a “Disruptive Portfolio Management Tool”, an “Opportunity Recognition Workshop”, the “DI Compass” and an “Innovation Ecology Portal”.
Detailed descriptions of real case studies complemented by a utopian urban story enrich the concepts and make the complex and intangible ideas come alive.
The lively graphics and illustrations that enrich the insights in the text reflect the consortium’s philosophy that visualisation is an effective method of conveying, and absorbing, new ideas.
The Disrupt-IT project was co-funded by the European Commission Information Society Technology (IST) programme, which is a fertile ground for leading edge Knowledge Management research.
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
IntroductionFiona Lettice
What does the journey into Disruptive Innovation look like?
This chapter tells the story of the fascinating journey which led to the idea
and the writing of this book.
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Part ONE
What is Disruptive Innovation?
The reader is invited on a short and risk-free knowledge safari. Three questions are explored:
What is disruptive innovation? What are the core principles? What does disruptive innovation look like in the real world?
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
The Principles of Disruptive Innovation
Fiona Lettice and Pete Thomond
What is disruptive innovation, and why is it so challenging?
The increased market, technical and environmental uncertainty surrounding the
introduction of disruptive innovations increases the need for companies to extend beyond their traditional view of markets and products - and this requires new approaches
to innovation.
1
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Easy Innovation
Palie Smart and Fiona Lettice
The easyWay to become a serial Disruptive Innovator
This chapter illustrates disruptive innovation in action by describing the successful case of the easyGroup - an organisation that has repeatedly deployed disruptive innovation thinking across
different service sectors. Despite its initial success, it is an on-going struggle to bring a
disruptive idea to full commercialisation.
2
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Disruptive SnapshotsPete Thomond and Fiona Lettice
Eight examples of Disruptive innovation in action
This chapter provides further examples of disruptive innovation case studies. These snapshots should all be familiar stories
and as a reader you will probably be able to think of more. They demonstrate
different types of disruptive innovation: business model innovation, technological innovation, and some innovations based
on a genuine combination of the two.
3
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Part TWOMaking Disruptive Innovation
Happen
How do you make Disruptive Innovation happen, again and again and again?
Disruptive Innovation requires
a fair amount of serendipity,
good brains , sparkling ideas,
as well as a dash of luck.
Our basic assumption is that, in addition, good
processes, methodologies, systems
and the right organisational environment
can increase its likelihood.
Part TWO is about a toolkit
designed to enable, foster and catalyse it.
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
The Disrupt-It WayPete Thomond and Fiona Lettice
How do you turn the theory of Disruptive Innovation into a structured methodology?
This chapter outlines the Disrupt-It methodology, which is a simple but pragmatic process for
capturing and managing ideas, through a series of discrete operations, and bringing them to commercialisation. The complete gated process is explained step by step.
4
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
The Tools for the JobRon Dvir
How do you put the DI methodology into practice?
This chapter presents an overview of the six modules included in the Disruptive
Innovation Toolkit. Although each can be used as a stand-alone tool, best results are
achieved when they are integrated into a complete DI programme.
5
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Disrupting Strategically Disruptive Portfolio Management
Pete Thomond and Fiona Lettice
How do you balance incremental, evolutionary and disruptive innovation?
This chapter shows how portfolio management techniques can be adapted to
address the challenge of creating and sustaining an innovation strategy, which
aims to deliver both sustaining and disruptive innovations.
6
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Identifying Hidden Opportunities
The Opportunity Recognition Workshop
Laura Vidal, Fiona Lettice and Pete Thomond
Where do you go to look for gold, before the other prospectors turn up?
The creativity and idea generation inputs and outputs, which are required for Disruptive
Innovation, are different to those needed to deliver incremental or evolutionary
innovation.
7
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Turning Ideas into Value The Idea Pipeline
Tomás Garcia and Pete Thomond
How do you expedite the flow of the best ideas into the market, and not into the
organisational idea graveyard?
The Ideas Pipeline is a gated process to catalyse the lifecycle and flow of ideas, from idea to business plans for the new
business concepts, products and services.
8
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Creating the Climate – Disruptive Innovation
EcologyRon Dvir
In what conditions can Disruptive Innovation flourish?
Well-defined processes are not sufficient. This chapter is about the “environment”,
“climate”, or “organisational ecology” in which disruptive innovation is enabled, or better still, is encouraged and flourishes.
9
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
The Disruptive Innovation Compass
The Fast Assessment Tool
Matthias Stabe and Patricia Wolf
Where is the company heading – and why?
Businesses are regularly confronted with the threats and opportunities of disruptive
innovation – most of which go unnoticed until it is too late. The DI Compass
sensitises organisations to essential stimuli to ensure speedy detection and
assessment of such threats and chances through an interactive card game.
10
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Part THREEStories from the Disruptive
Innovation Campfire
Live disruptive innovation is exciting, but what happens back stage?
Discover how four organisations have put the Disrupt IT Way into practice and kick-
started the disruptive innovation process in their own firms.
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Innovation at Ultra-Sonic speed
Yinon Friedberg, Edna Pasher, Rennen Sior, and Ron Dvir
How can large corporations embed Disruptive Innovation into their culture?
Innovation is one of four core values of Israel Aircraft Industry. The implementation of the Disrupt It toolkit at IAI’s LAHAV is part of a company wide effort. A diary captures the
different stages in LAHAV`s innovation journey.
11
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Cooking Up a Storm in Catering
Menno Marien and Laura Vidal
How can a small company disrupt a traditional service?
The mission of the Competitive Design Network (CDN) is to help its clients surprise their customers and disrupt their markets. The story of one traditional service which was turned up side down demonstrates
how this works.
12
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
When Helmets are not Enough
Fred Michel, Antoine Monville and Pete Thomond
What would you do in the event of an attack by a low cost Chinese manufacturer?
Pactuco is a French plastics mouldings manufacturer. The chapter shows how insurgent Chinese manufacturers have
begun to disrupt its core market –forcing it to consider new competitive positions.
Pactuco leaders used the DPM tool to identify a disruptive response.
13
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
14 How Vikings Disrupt Intellectual Capital
Elisabet Gemzell Mikkelsen, Ann-Sofie
Fjällström and Henrik Danckwardt
Is Disruptive Innovation relevant to consultancy firms?
ICC is a small Swedish company focusing on helping communities leverage their Intellectual
Capital. This chapter describes what they discovered about their services portfolio, as a
result of an Opportunity Recognition workshop.
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Part FOURFlying into the Future
What’s next in disruptive Innovation ?
In part FOUR of the ‘Are You Ready To Disrupt It?’ book, we summarise where research and
practice in disruptive innovation could take us and propose a vision of the future.
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Fiona Lettice and Patricia Wolf
What are the next research frontiers?
The research of Disruptive Innovation is at its infancy. It
is a complex way to create value; it involves
technological, economical, cultural and organisational
inter-related challenges. In this chapter we highlight
the research areas that need to be further explored.
15 Outlook – Disruptive!
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
16 DI-Utopia?Ron Dvir
What does Urban Disruptive Innovation mean?
It is a story about a city that was in a state of decline just like many other shrinking cities in the world. As a result of its determination to revitalise itself through the application of disruptive innovation to all aspects of urban life, this city has changed its own destiny. Welcome to our vision of the disruptively
innovative future: DI-Utopia! Join us as we start our tour…
A. Dvir 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
A: Contributors B: Product Sheets
C: Internet Links D: References
E: Publications
Disruptive workshop, December 2003, Rubi
AppendicesAnd Finally…
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Appendix A: ContributorsA great many innovative thoughts and ideas from a great range of inspiring sources have
gone into the spirit that has given birth to this book. The book reflects that creative diversity
and the synergies that have emerged through the personal journeys and collaborative efforts that have taken place on the road that has led us to
ask, ‘Are You Ready To Disrupt It?’
Here we introduce you to the people who have helped to make it possible.
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Appendix BProducts Sheets
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Copyrights 2004
Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation
Edited by
Ron Dvir, Fiona Lettice and Pete Thomond With Carol Webb Illustrations by Arye Dvir
‘Are You Ready to Disrupt It?’ is a unique knowledge safari into the wilderness of a new type of innovation which has emerged in the business world as well as in the research arena: Disruptive Innovation.
The book is the culmination of a project by The EU Disrupt-IT project consortium, reflecting the collaboration of experts from 6 countries. The consortium was formed in 2002 to develop a methodology and supporting software for enabling and catalysing the creation of new products, services and business models which have the potential to disrupt their markets.
The book conceptually clarifies some of the phenomena related to the realities of disruptive innovation, like:
“Low-end” market vs. New market disruptive innovation
Technological vs. Business Model disruptive innovation
The challenge of “Crossing the Chasm”
The book offers a comprehensive toolkit to foster disruptive innovation: this includes a “Knowledge Safari”, “Idea Pipeline software”, a “Disruptive Portfolio Management Tool”, an “Opportunity Recognition Workshop”, the “DI Compass” and an “Innovation Ecology Portal”.
Detailed descriptions of real case studies complemented by a utopian urban story enrich the concepts and make the complex and intangible ideas come alive.
The lively graphics and illustrations that enrich the insights in the text reflect the consortium’s philosophy that visualisation is an effective method of conveying, and absorbing, new ideas.
The Disrupt-IT project was co-funded by the European Commission Information Society Technology (IST) programme, which is a fertile ground for leading edge Knowledge Management research.
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