VS

Lessons From The Shanzhai

Kris GaleVP of Engineering — Yammer, Inc.

What is Disruption?

Competition Disruption

These Companies provide the same value the same way

These Companies provide the same value in different ways

Vs

Vs

Vs

Vs

Attrition Warfare Maneuver Warfare

• Centralization• Command and

Control• Careful Pace

• Decentralization• Delegation of

initiative• Speed

How are the Shanzhai demonstrating the advantages of maneuver warfare?

Companies are vulnerable to disruption

What if companies organized around the value they provide?

Video Streaming Mailbox + DVD’s

The Shanzhai aren’t a single company, so they’re necessarily decentralized.

Rules of the Shanzhai

Design nothing from scratchMake time for innovation

Innovate at small scaleAllow everyone to innovate

Share as much as you canWork openly and break down silos

Sell it before you make itDon’t build solutions in search of

problems

Act Responsibly in the NetworkAssume and maintain trust

The Shanzhai provide a model for decentralized innovation.

Questions?