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