disruption! or just innovation? · the innovators dilemma clayton m. christensen 1997 the...
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![Page 1: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/1.jpg)
Disruption! or Just Innovation?
LARRY LUKISHex Music
LaserMaster/Colorspan
Proto Labs
Digi Labs Incubator
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Four Entrepreneurial Ventures
• Hex Music – 1981-82 – Practice
• LaserMaster – 1985-98 – Trial by Fire
• Proto Labs – 1999… – Smooth Sailing
• Digi Labs – 2015… - Just for Fun
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Clayton M. ChristensenThe Innovators Dilemma 1997
The Innovators Solution
2003
Not just any generic Disruption
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Clayton Christensen’s Disruption
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“Oh, don’t worry about those guys, nobody can make any money on the simple stuff they
are doing.”
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• Hex Music – 1981-82 – Practice
• LaserMaster – 1985-98 – Trial by Fire
• Proto Labs – 1999… – Smooth Sailing
• Digi Labs – 2015… - Just for Fun
![Page 7: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/7.jpg)
Hex Music 1982-83
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The Mini-Moog (1970-80)
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Prophet-5 – had a
microprocessor!
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HEX Music Digital Synthesizer
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Hex Music
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Hex Music
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Hex Music
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Hex Music
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Dual Double Density
@256kBytes!
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“That’s what you can do when you have your own
semiconductor production facilities”
Yamaha introduces the DX9 at list price ~$1350Hex Music Synth build cost (optimistically) ~$1300
This is the end of Hex Music!
Yamaha DX9 Introduced at NAMM 1983
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Not Disruptive Innovation
– Just Innovation
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Moral of the Story
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Intran Corp.
• $5 million VC money• Met all hiring targets, sales not so much• Founder ejected from the company• Ch 11 Bankruptcy 1 year later
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• Hex Music – 1981-82 – Practice
• LaserMaster – 1985-98 – Trial by Fire
• Proto Labs – 1999… – Smooth Sailing
• Digi Labs – 2015… - Just for Fun
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
One Minute Laser Plots for
AutoCAD
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
Full page 300 dpi graphics
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
Desktop Publishing
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If You Hate To Wait!
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Attacking Adobe
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Non-stop Innovation
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Quality Focus
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Fonts!
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Innovation: 2 Bits Per Pixel!
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
However…
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
However…
• Apple releases scalable True Type fonts. Licenses to Microsoft. Adobe also opens their font format in response.
• Scalable fonts are built into OS.
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
Tough To Keep Ahead
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
Not Disruptive Innovation – Just
Innovation
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LaserMaster becomes
ColorSpan
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ColorSpan Glory Days
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HP Introduces DesignJet
By mid-1990s, the story repeats.
HP enters market with a great product at much lower price point.
Colorspan struggles, pushed into smaller and smaller niche.
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
ColorSpan: Disruptive Innovation
- Not
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Time for another reinvention
• ColorSpan parent name changes to VirtualFund.com
• ColorSpan sold to MacDermid for $50 million
• VirtualFund spends all the money, then crashes and burns
• MacDermid later sells ColorSpan to HP
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• Hex Music – 1981-82 – Practice
• LaserMaster – 1985-98 – Trial by Fire
• Proto Labs – 1999… – Smooth Sailing
• Digi Labs – 2015… - Just for Fun
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Protomold: “Simple Parts, Fast”
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Disruptive Innovation
Protomold
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Stay Out of Their Way
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
Early Days
Proto Labs Growth
Employees 3
Revenue $0.1MM
Facilities 1
Product
Developers
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2001: $1MM, Hire CEO
The Early Team
Employees 12
Revenue $1.1MM
Facilities 1
Product
Developers
77
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Do you really want to be a CEO?
No, I don’t! Yes, I do!
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2003: $6MM Revenue, Profitable
Employees 55
Revenue $6MM
Facilities 1
Product
Developers
573
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
You still have to innovate!
Why are you creating all this custom software? Why don’t you just buy a commercial software package?
Because we are software developers, that’s what we do!
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
What was our innovation?
• Automated toolpath generation (Software: PMD)• Automated quoting (Software: PMQ)• Only CNC machined aluminum molds• Standardized minimal tool set – Constraining the
problem
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A D D I T I V E M A N U FAC T U R I N G | C N C M AC H I N I N G | I N J E C T I O N M O L D I N G
Innovation: Focus
• If a customer’s part does not fit our process, we won’t make it
• But we will graphically illustrate the nearest part we can make that does fit the process (Software: PMQ)
• By focusing exclusively on what we can do well, we are always better than the competition for anything we can quote
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2005: $17MM, Expand to Europe
Employees 106
Revenue $17MM
Facilities 2
Product
Developers
1,265
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2006: $25MM, Expanding Facilities
US facilities
expand to
160,000 sq ft
Employees 170
Revenue $25MM
Facilities 3
Product
Developers
1,810
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
Employees
Revenue
Facilities 4
Product
Developers
2,696
2007: $36MM - CNC Machining Introduced as Firstcut
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2009: $44MM, Expand to Japan
Employees 276
Revenue $44MM
Facilities 5
Product
Developers
4,746
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2010: $65MM, Meet the Queen
Proto Labs Limited
receives the Queen’s Award
Employees 347
Revenue $65MM
Facilities 5
Product
Developers
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Awards and Rewards
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2011: $99MM, U.K. Facilities Expanded, Cool Idea! Award Introduced
Proto Labs Japan
UK facilities expand to 130,000 sq ft
Employees 3
Revenue
Facilities 5
Product
Developers
10,427
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58
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2012: $126MM, more awards, IPO
Employees
Revenue
Facilities 6
Product
Developers
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59
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
I N J E C T I O N M O L D I N G C N C M AC H I N I N G 3 D P R I N T I N G
Proto Labs Growth
2014: $210MM, Vicki Holt CEO, Additive Services Added to Portfolio
Employees
Revenue
Facilities 12
Product
Developers
21,552
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Disruptive Innovation
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Disruptive Innovation: Results
• $250+ million annual revenue• 1250 employees• ~60% gross margin• Still growing like crazy after 15 years • No competition from incumbent players• $1.5 billion market cap
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Disruptive Innovation: Rewards
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• Hex Music – 1981-82 – Practice
• LaserMaster – 1985-98 – Trial by Fire
• Proto Labs – 1999… – Smooth Sailing
• Digi Labs – 2015… - Just for Fun
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Digi Labs (digilabs.io)
![Page 65: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/65.jpg)
Virtual Reality for Architecture
![Page 66: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/66.jpg)
The Wild Goose Chaser
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Deep Learning/Neural Networks
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Deep Learning/Neural Networks
![Page 69: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/69.jpg)
Deep Learning/Neural Networks
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Deep Learning/Neural Networks
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Deep Learning/Neural Networks
Goose! No Goose.
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Blue Robotics
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Ocean Discovery XPRIZE
![Page 74: Disruption! or Just Innovation? · The Innovators Dilemma Clayton M. Christensen 1997 The Innovators Solution 2003 Not just any generic Disruption. Clayton Christensen’s Disruption](https://reader036.vdocuments.site/reader036/viewer/2022081402/5f8b2f664204a732e9210976/html5/thumbnails/74.jpg)
So Much Cool Stuff!
• Internet of Things• The Cloud • Maker Movement – smart, ambitious
people-concentrator• Raspberry Pi - $5 – runs Linux• Computer Vision • Deep Neural Networks• Robotics• Open Source