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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 RE YOU READ Y 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 ‘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 ChasmThe 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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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.

TRANSCRIPT

Page 1: Are You  Ready To Disrupt It Slide Share

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.

Page 2: Are You  Ready To Disrupt It Slide Share

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

Page 3: Are You  Ready To Disrupt It Slide Share

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

Page 4: Are You  Ready To Disrupt It Slide Share

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

Page 5: Are You  Ready To Disrupt It Slide Share

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

Page 6: Are You  Ready To Disrupt It Slide Share

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

Page 7: Are You  Ready To Disrupt It Slide Share

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.

Page 8: Are You  Ready To Disrupt It Slide Share

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

Page 9: Are You  Ready To Disrupt It Slide Share

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

Page 10: Are You  Ready To Disrupt It Slide Share

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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 14: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 15: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 17: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 18: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 19: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

Page 20: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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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

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

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A: Contributors B: Product Sheets

C: Internet Links D: References

E: Publications

Disruptive workshop, December 2003, Rubi

AppendicesAnd Finally…

Page 24: Are You  Ready To Disrupt It Slide Share

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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.

Page 25: Are You  Ready To Disrupt It Slide Share

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

Page 26: Are You  Ready To Disrupt It Slide Share

Are you Ready to Disrupt-It?An illustrated guide to Disruptive Innovation

Copyrights 2004

Page 27: Are You  Ready To Disrupt It Slide Share

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.