A STRATEGIC BRIEFING

Digital Disruption from Zero to SixtyWith Neel Banerjee of Urban AirshipAnd Gene Ehrbar of ISITE Design

WENDESDAY, MARCH 19th AT 2PM EST.

In this briefing, you will learn:

1. What is Digital Disruption?2. Why are customer-focused ideation techniques

critical for driving new product development?3. How can enterprise organizations foster

collaborative innovation teams across the company?

Hello and Welcome!

Our flight plan for today:

• A Brief History of Innovation• Digital Disruption: Phenomenon, Practice, Mission• Q&A

Agenda

What is Digital Disruption?

A Brief History of Innovation

5

6

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(per Clayton Christensen, 1995)

Innovation that creates a new market or value network, disrupting an existing market, and displacing an earlier technology.

Disruptive Innovation

9

(per James McQuivey, 2013)

Innovation in an existing market that uses digital tools, methods, and infrastructure to fundamentally alter the delivery of a product or service, undercutting incumbent companies in the process.

Digital Disruption

Why has Digital Disruption emerged?

• Free/cheap digital tools• Radically reduced infrastructure costs• Overall reduced cost to engage customer

Net result: small, new upstarts can compete with established market leaders quickly.

Digital Disruption: As a Phenomenon

Image: James McQuivey, “Digital Disruption”

Return on Innovation

Digital Disruption leverages efficiencies to magnify the impact of innovation efforts.

Then vs. NowDisruptive Innovation Digital Disruption

Product-Centric Customer-Centric

Expensive, risky, slow-to-market

Cheap, low-risk, fast-to-market/fail

Take hold in niche markets first Can impact mainstream quickly

Long product-development cycles

Rapid ideation, iteration, delivery, and optimization

Fax machineMobile phoneEmail

iOS app marketSharing economy (Uber, AirBnB)Crowdfunding

How can you achieve digital disruption and harness its power?

Digital Disruption: As a Practice

• “Build stuff customers actually want.”• “Innovate the Adjacent Possible.”• “Build. Test. Learn.”• “Avoid holding innovation efforts to executional

standards.”

Process:

• Start with market problem / user problem• Use real customers — don’t make them up• Create personas from real customers, and

determine their motivations, passions, needs, wants

• Get out of the office

Start with the Customer

• For engineers and product designers, it can be difficult to separate the problem from the solution.

• By following the Customer->Benefit path, we avoid settling on solutions prematurely

Determine Benefit

• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”

• Not necessarily linear, or obvious• Expand step by step through adjacent

possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product

The “Adjacent Possible”

• No need to know the outcome or even how to get there, just explore — get to the “stable next stage”

• Not necessarily linear, or obvious• Expand step by step through adjacent

possibilities• Best outcome, shortest time, lowest cost• Customer->Benefit->Strategy->Product

The “Adjacent Possible”

Synthesis: The Product Vision Statement

“Fitbit for cars”

• Commodity OBD-reader hardware

• Commodity smartphones• Disruptive synthesis

Example: Dash

Revolutionizing Transit Payments

• First system-wide mobile pay-and-use

• Leveraging commodity smartphones

• Collaborative design/build process

Example: Globesherpa

How can you convince your organization to try this?

• Larger organizations naturally more risk-averse, wary of premature sharing of results with customers.

• On the contrary, iteration & rapid prototyping can be seen as risk mitigation techniques — lowered initial cost, faster results, shorter path to validation.

• Keep teams small• Cross organizational boundaries• Resist holding innovation efforts to executional

standards.• Disrupt or be disrupted

Digital Disruption: As a Mission

• Digital Disruption is happening right now, in every industry

• The competitive landscape has been completely reshaped by the emergence of Digital Disruption

• Companies of all types can use disruptive techniques to improve their customer experience

• Lean Startup and Design Thinking methodologies can help inform disruptive efforts

• Becoming a disruptive company requires a deliberate effort, that is likely outside of the usual scope of operations for enterprise companies

Summing up…

Q&A Time!

Download a free ideation template at http://isitedesign.com/disrupt

Thank you!

Gene Ehrbar@pdxgene

Neel Banerjee@nbanerjehttp://urbanairship.com