Innovators Solution

From earlier notes:

  • One of the reasons the outcome of innovation appear to be random is many ignore categorization
    • Need to take circumstances into account before recommending a prescription
  • Disruptors keep climbing customer segments bc their improvement outstrips consumers ability to take advantage, so climb tiers
  • Asymetric motivation - big companies always motivated to go up market not down to fend off
  • Strategy of disruption increases odds of success in growth biz from 6 to 37 percent
  • Jobs to be done - segment first by need or crcumsrsjce, not product or customer
  • Hard because easier to quantify what you are giving up than what you are getting when you focus on a specific job or job set
  • New market (unservrd customers) is different than low end of the market (overserved)
  • Frame as threat to get resources, but then shift to make it an opportunity in how you pursue
  • Go to market through a disruptive channel - must be symmetry of motivations through the whole chain to take hold.
    • True in eth devs, not in traditional channels
    • Make competitors ignore you
  • Insource vs outsource - think about future core, not current core
  • Job to be done today - login and authenticafion. In the future - data platform
  • Interdependence - if complicated or unpredictable interfaces, integrate. Modularize if clean interfaces .
    • Where do as need to own the interface? Sdk to app?
    • Modular flexibility gives less freedom in design, so less performance. (But solved with open source)
    • When product is not good enough, need to eek out more performance (integrate) - but this assumes a knowledge of the job to be done and competition for it, which is not our circumstance
    • ‘why can’t they see we’re better’ — evidence of overshooting, go modular
    • Modular is far easier to compete over time as things change, less to reengineer
    • Integrated vs modular applies only once you know the market and job to be done. We just need to build a useful product first
    • Will shift over time. Right now needs are low
  • Anytime one part of the value chain is being commoditized, another part of the chain is being de-commoditized
  • Integrate the most needed product, encourage the other parts of the value chain, as needs are met beet commodization by modularize and move to next part of chain
    • Example: IBM gives up advantage in discs (profitable now but not later) by modularizing, making assembly accessible to competitors and commodity while they focus on the highest profit component supplying that
  • Do what customers value, not what you are currently good at
  • Capabities: resources, processes, values
    • Choose talent based on circumstantial experience — not success or failure in other areas
    • Values - everything that helps employees make decisions in line with company goals
    • The processes and values that enable sustatining innovation will make it impossivle to do disruptive. Need to create separate units with different processes and values
  • Don’t let deliberate strategy cloud ability to see emerging strategy - strategy can emerge from process and values, not dictate it (eg roi decision making)
  • must drive fast to profit delay to growth. Show your valud early to find your strategy
    • Unless independent will always be pressured for fast procit and growth - earn fast procit as protection
  • An organization cannot disrupt itself, it’s processes and values are set up to sustain not disruption
  • Growth engine
    • Driven by policy not finances
    • Strong leader and resources
    • Establish practice for shaping ideas into business plan
    • Train the org to think like this