DISRUPTIVE INNOVATIONS

What aspect of the execution logic for disruptive innovation do you find missing or not working within your organization?

  1. Disruptive innovations bring a good-enough utility or use value to markets at substantially lower prices than established vendors, bringing new customers into a larger but disrupted market.
  2. Disruptive pricing levels enable a market-disrupting firm to serve customers who could not otherwise buy higher priced, more functional products or services from established vendors.
  3. Business models that harness disruptive innovations transform the embedded labor, knowledge, or capital of higher priced, more functional products or services into stripped-down, substantially lower-priced, good-enough solutions.
  4. Identification of the root cause(s) of dissatisfaction among consumers or businesses clarifies which aspects of the embedded labor, knowledge, or capital of higher priced, more functional products or services one can and should transform into rules-based technologies, self-service systems, and substantially lower-priced good-enough solutions.
  5. Market-making for disruptive innovations—rules-based technologies, self-service systems, and substantially lower-priced good-enough solutions—requires a common understanding of root causes, a common language to distinguish causes and effects, a common way of framing the business case (for businesses) or payback case (for consumers), and a common expression that summarizes a differentiated value proposition for lower-priced good-enough solutions.
  6. A viral, word-of-mouth value proposition speeds market-making for disruptive innovations, enabling early adopters to make the business case or payback case.

To succeed in the Era of Trust Networks, how do you need to think differently about your value proposition?