These days, Creative Disruption being the New Normal, organizations are constantly urged to redesign their bridge towards a Stable Normal.
At the start of this year, former Microsoft top executive Steven Sinofsky, currently a Board Partner at Andreessen Horowitz laid out a framework, analysis and guidelines for coping with disruptive innovation in times of exponential change:
Considering these stages and reactions, there are really two key decision points to be tuned-in to:
When you’re the incumbent, your key decision is to choose carefully what you view as disruptive or not. It is to the benefit of every competitor to claim they are disrupting your products and business. Creating this sort of chaos is something that causes untold consternation in a large organization. Unfortunately, there are no magic answers for the incumbent.The business team needs to develop a keen understanding of the dynamics of competitive offerings, and know when a new model can offer more to customers and partners in a different way. More importantly, it must avoid an excess attachment to today’s measures of success.
The technology and product team needs to maintain a clinical detachment from the existing body of work to evaluate if something new is better, while also avoiding the more common technology trap of being attracted to the next shiny object.
When you’re the disruptor, your key decision point is really when and if to embrace convergence. Once you make the choices — in terms of business model or product offering — to embrace the point of view of the incumbent, you stand to gain from the bridge to the existing base of customers. Alternatively, you create the potential to lose big to the next disruptor who takes the best of what you offer and leapfrogs the convergence stage with a truly reimagined product. By bridging to the legacy, you also run the risk of focusing your business and product plans on the customers least likely to keep pushing you forward, or those least likely to be aggressive and growing organizations. You run the risk of looking backward more than forward.
For everyone, timing is everything. We often look at disruption in hindsight, and choose disruptive moments based on product availability (or lack thereof). In practice, products require time to conceive, iterate and execute, and different companies will work on these at different paces. Apple famously talked about the 10-year project that was the iPhone, with many gaps, and while the iPad appears a quick successor, it, too, was part of that odyssey. Sometimes a new product appears to be a response to a new entry, but in reality it was under development for perhaps the same amount of time as another entry.
Posted Under: Design2Disrupt
This video is about the inevitability of robotization. More computers in and people out of the labor force. Thanks to my colleague Gerben Tijkken that sent me this video. A 15 minutes watch, but it’s worth it.
Anyone who’s read books like “Race Against the Machine”, “Average Is Over” or “Robots Will Steal Your Job But That’s Ok”, knows that machines are getting better in tasks that haven’t been automated (yet). How will the future be like, and what about your own job? Ar you better than a computer? Really?
Posted Under: Design2Disrupt
“When we say Bitcoin, we mean the idea: the birth of cryptocurrency. We know it’s not perfect. But we’re not after perfection, we’re after progression. We’re after a way out. And we will not stop.
We have been brought to a point where it has become necessary to dissolve the bond between currency and institution. We are not required to declare the causes which impel us to push for the separation, but we will oblige.
We hold these truths to be self-evident. We have been cyclically betrayed, lied to, stolen from, extorted from, taxed, monopolized, spied on, inspected, assessed, authorized, registered, deceived, and reformed. We have been economically disarmed, disabled, held hostage, impoverished, enervated, exhausted, and enslaved. And then there was bitcoin.
But we are in an age of appropriation, and nothing is immune. Today bitcoin is not only volatile in its value, but in its very essence. Bitcoin is in the crucial stages of development. Its code can evolve in several directions. It’s under threat from those who don’t understand it; it’s under threat from those who do understand it, but fear it.The crusade to absorb bitcoin into the seams of the State has begun. There is a conscious effort to co-opt. The goal is to swallow bitcoin, process it, integrate it, devolve it, and keep it stagnant in the gears of a failed operating system. Bitcoin’s potential is being hijacked. They have their own idea of what they want bitcoin to be. They have their own plan for its potential, and they have an investment in that plan. But our consent is withdrawn and the power of our ideas is too strong.
Do not underestimate DNA; nothing is born completely neutral. Follow the protocol: it has anarchistic implications. Bitcoin is inherently anti-establishment, anti-system, and anti-state. Bitcoin undermines governments and disrupts institutions because bitcoin is fundamentally humanitarian. There’s an elimination of 3rd party intrusion. It’s purely peer-to-peer. The blockchain is free speech. It’s decentralized, voluntary, and non-aggressive. Bitcoin is not supposed to work within our current mechanisms. Bitcoin needs not entities of authority to acknowledge it, incorporate it, regulate it, and tax it. Bitcoin does not pander to power structures, it undermines them.
Bitcoin is an animal of anonymity. Bitcoin basks in shadow. Satoshi’s facelessness is symbolic of this. Privacy is the point. Bitcoin is meant to function outside of regulatory systems. It is not a cog.
Bitcoin means to channel economic power directly through the individual. This is reflected by Satoshi’s symbolic birthday, which falls on the same day that Roosevelt signed the 6102 Executive Order, which forbade the hoarding of gold. We repeat. Bitcoin is not intended to be integrated; it’s intended to be a ghost outside the machine.
The voices of the people who are working to preserve the purity of bitcoin’s ethos are being drowned out. But actions speak louder than words. Bitcoin is utility. The cypherpunks are building anonymous systems. The crypto-anarchists are making institutions arbitrary. The internet is anarchy. And cryptocurrencies are the printless fingers of the internet.
Bitcoin is not just a currency, a commodity, or a convenience. Just like the internet gave information back to the people, Bitcoin will give financial freedom back to the people. But that’s only the first step. There will be a shift in the structure of enterprise, in the way we interact, in the way we voice our opinions, and in the way we fuel our action. Bitcoin will allow us to shape the world without having to ask for permission. We declare bitcoin’s independence. Bitcoin is sovereignty. Bitcoin is renaissance. Bitcoin is ours. Bitcoin is.”
Read here more.
Posted Under: Design2Disrupt
Seventeen years after the publication of Clayton Christensen’s book The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, his key concept of disruptive innovation is more alive than ever. Today, Principal Forrester Analyst James McQuivey defines the current prominent manifestation of Digital Disruption: Unleashing the Next Wave of Innovation simply as follows:
“Someone who knows how to use digital tools to do things better, faster or cheaper than before.”
Mr. Christensen had to admit that he had failed to spot this obvious SMACT angle on disruptive innovation:
“I have studied disruptive innovation for more than two decades. Here, McQuivey offers insights about disruption — and about the accelerating pace of disruption — that I truly hadn’t understood before. This is a very important book about what tomorrow holds in store; it shows us both what will happen and how to address it. I recommend it enthusiastically.”
In March 2014, The New York Times sounded the alarm bell over its own existence with an extensive innovation report on the digital threats to their business, and the exposure of their overconfident inability to act.
Their take on the matter: disruption is a predictable pattern across many industries in which fledgling companies use new technology to offer cheaper and inferior alternatives toproducts sold by established players (think Toyota taking on Detroit decades ago). Today, a pack of news startups are hoping to “disrupt” our industry by attacking the strongest incumbent — The New York Times. How does disruption work? Should we be defending our position, or disrupting ourselves? And can’t we just dismiss the BuzzFeeds of the world, with their listicles and cat videos? Here’s a quick primer on the disruption cycle:
1. Incumbents treat innovation as a series of incremental improvements. They focus on improving the quality of their premium products to sustain their current business model.
For The New York Times, a sustaining innovation might be our multimedia Internet production “Snow Fall.”
2. Disruptors introduce new products that, at first, do not seem like a threat. Their products are cheaper, with poor quality — to begin with.
3. Over time, disruptors improve their product, usually by adapting a new technology. The flashpoint comes when their products become “good enough” for most customers. They are now poised to grow by taking market share from incumbents.
Hallmarks of Disruptive Innovators:
– Introduced by an “outsider”
– Less expensive than existing products
– Targeting underserved or new markets
– Initially inferior to existing products
– Advanced by an enabling technology
Posted Under: Design2Disrupt
A computer chip designed to mimic the performance of the human brain? Yes. The chip is developed by IBM together with Cornell Tech and could prove a big step forward in the future of computing power. The chip is called SyNAPSE, which stands for Systems of Neuromorphic Adaptive Plastic Scalable Electronics.
So whats the human brain part about?
This chip is capable of 1 million programmable neurons, 256 million programmable synapses and 46 billion synaptic operations per second, per watt. IBM has also tethered 16 of these chips together in four four-by-four arrays, which collectively offer the equivalent of 16 million neurons and 4 billion synapses, showing that the design can be easily scaled up for larger implementations. Unlike traditional chips, who follow the lines of the von Neumann-architecture meaning that they process information step by step, this chip is able to be active on different levels and actions.
IBM calls this cognitive computing because of a dynamic that attempts to mimic the interactions of neurons and synapses in biological brains. It offers more of a organic approach to problem solving, based on hypotheses, past experiences and trail and error. Similar to a human brain. [Read more...]
For anyone who’s looking for some inspiration this summer: The Ellen MacArthur Foundation will stage the first Disruptive Innovation Festival (DIF) in 2014. Bringing together thought-leaders, entrepreneurs, businesses, makers, learners and doers to catalyse system-level change for a future economy.
A challenged linear ‘take make and dispose’ economy can be replaced by a more prosperous regenerative and circular economy – is this the ultimate disruption?
• SYSTEMS THINKING
• 21ST CENTURY SCIENCE
• MATERIALS AND ENERGY
• NEW BUSINESS MODELS
• DESIGN AND INNOVATION
• INFORMATION AND KNOWLEDGE
• COLLABORATIVE CONSUMPTION
• INTERNET OF THINGS
An online festival on disruptive innovation with great speakers like Wired editor David Rowan and Rachel Botsman on the collaborative economy
Free registration here
Posted Under: Design2Disrupt
It is imperative that both IT and OT learn more about the goals, technologies, and challenges of their counterpart. An Industrial IP Advantage example video by Rockwell Automation’s Paul Brooks describes how convergence is helping manufacturers today. We need to leverage the power of IT’s knowledge of best practices for information technology deployment along with OT’s mastery of physical systems to succeed.
Download our PDF report on the Fourth Industrial Revolution of IT, OT and IOT
What steps are you taking to break down silos? It calls for relationship building based on training, pilot projects and understanding of:
•Industry specific and industrial training for IT personnel (e.g. IEEE ‘Plain Talk’)
•Professional development courses for OT personnel on IT technologies
•Executive education courses in information/process maturity
•Courses on business process models, e.g. ITIL, CMMI
•Cross-training and multi-month assignments across departments
•Cross-functional team projects
•Personal relationship development across departments
•Mentoring programs supported and sponsored by executives
Source: Industrial IP Advantage
Posted Under: Things
You are probably on holiday of either just got back or patiently waiting to go.. In this post I wanted to highlight some of the great articles that have been published this year on the blog so far. A summer reading-list, I hope you enjoy it.
The trends in topics are clear: everything internet of things and wearables related was really popular. Also a good sign: our new research topic for 2014/2015 called Design to Disrupt already claims three spots in this top 10.
- 1. YOUR INTERNET OF THINGS TINKERING KIT: 10 NECESSARY TOOLS & TIPS
In this post Jaap dives deep into the internet of things and presents his Forward-Thinking IoT Tinkering Kit. It consists of the following necessary tips and tools, like this one: The M2M principle, or the Automation of Automation, in existing or new event, process and value chains. Be aware of what automation means, how it developed, and what its high-paced evolution could mean for you as objects go online and we move from the Internet of Computers to the Internet of Things.
- 2. 2014 WILL BE THE YEAR OF THE SMART WATCH (AND OTHER WEARABLE TRENDS)
In this post Thomas presents 2014 as the year smartwatches will take off and the war for your wrist will begin. With the market for smartphones largely saturated in the US and Europe and user like myself suffering from upgrade fatigue, vendors now aim for the wrist of consumers and their next cash cow.
- 3. CONTEXTUAL IS THE NEW MOBILE
Another posts on wearables. This one is on designing for a new mobile form-factor that is not restricted to your pocket. Wearable tech is all about unleashing the power of smartphones onto new types of devices. The overarching goal? Creating highly personalized interactions and experiences.
- 4. WEARABLE COMPUTING: HARDWARE IN ALL SHAPES AT CES 2014
Yet another post on wearables. At the Consumer Electronics Show (CES) in Las Vegas this year, there have been a lot of announcements concerning new wearable devices. To show the diversity in function and hardware design, we lined up a few in this post.
- 5. D2D – DESIGN TO DISRUPT (DEEL 1 VAN 2) UBER, AIRBNB, KLM, ABN AMRO OP HET VINT-SYMPOSIUM 2014
This is part one (in Dutch) of our event report from this years Design to Disrupt event in the Netherlands. We also have a English summary who did not make the top 10.
- 6. INDUSTRY 4.0 = (THINGS + INDUSTRIAL INTERNET) X (IT + OT)
In this post Jaap shares his insight that essentially, the Internet of Things & Services is the fast-paced 21th century network evolution of traditional “white-collar” Information Technology (IT) and “blue-collar” Operational Technology (OT).Through this convergence of IT and production new business models and open business environments will arrive.
- 7. DESIGN TO DISRUPT – A FULL LECTURE IN JUST 5 SLIDES
Jaap kicked off a new “no comments” blogpost series. The first is a set of only five slides inspired by Senior VP Fred van Ommen of the Philips Corporate Innovation Office. His “lecture” if you wish, gives us a mapping tool if we wish to design for disruptive innovation. The bottom line here is that the more digital your solutions are, the more equipped you are for new business creation instead of just product innovation.
- 8. 118 WEARABLES ON THE MARKET AND COUNTING
Who is is making what in the wearable tech landscape? Wearable tech research and consulting firm Vandrico has put together this an overview of the space — tracking the number of devices in existence; areas of market focus; and even which parts of the body are being targeted most.
- 9. MORGAN STANLEY REPORTS ON INTERNET OF THINGS DISRUPTIONS
In this post Menno shares a recently published blue paper by Morgen Stanly that attempts to quantify the potential impacts of an ‘Internet of Things’ Economy. In their view, it is the pervasive penetration and integration of semiconductors, networking/connectivity, and Big Data/analytics into the real economy.
- 10. DESIGN TO DISRUPT (2/2) 4 VISIONAIRS: SANDER DUIVESTEIN, GERD LEONHARD, ARNOUT DE VRIES, DAAN ROOSEGAARDE
This is part two (in Dutch) of our event report from this years Design to Disrupt event in the Netherlands. We also have a English summary who did not make the top 10.
Experts at the Automotive Engineers World Congress last year predicted self-driving cars wouldn’t be seen in showrooms until at least 2025. Just five months later, Renault-Nissan CEO Carlos Ghosn said that he envisioned self-driving cars in showrooms five years earlier than that, in 2020. Now Mr Ghosn has revised his original prediction to 2018 – around four years from now – while speaking at a French Automobile Club event. “The problem isn’t technology, it’s legislation and the whole question of responsibility that goes with these cars moving around”
Give Google three years
Google says their new “Googly” cars should be road-ready by early next year, but that testing would take more than two years. At that point the technology will be ready for the next stage, which is likely to be greater pilot testing.
Mercedes Self Driving truck
In June this year Mercedes-Benz has claimed a world-first, completing a 100 km journey with a fully autonomous version of its new S-Class sedan. And now Mercedes Benz is heading for 2025 to introduce the world’s first self driving truck (their claim). It is based on intelligent networking of all the safety systems already available, plus cameras, radar sensors and vehicle-to-vehicle (V2V) communication. Daimler has more doubts about the legal framework (Like Renault-Nissan) to allow the trucks, then on the technology.