1. What is it and why should we care
Disruption
What is it and why should we care

2. Two meanings for “disruptive innovation”
Popular usage
Technical, sophisticated usage
What is wrong with the popular usage? There are different types of innovation and calling them all “disruptive” leads to mistakes in how to deal with it

3. What is “disruption”?
“Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.
“Disruptive innovation” is the trigger of disruption. Often, it is digital innovation.
Christiansen et al., HBR 2015

4. A theory of innovation

5. A A Low end footholds or new market footholds “Good enough” products
Christiansen et al., HBR 2015 A
Low end footholds or new market footholds
“Good enough” products A

6. A disrupted incumbent
In 2004, Blockbuster dominated the U.S. video/DVD rental market (and others around the world) with 9,000 stores, taking just under two decades to get to that position. By 2010, it had filed for bankruptcy, with its number of outlets shrinking to just a third of its peak. (Gans 2015)
In 2000, it changed its business model, moving to a subscription service that allowed consumers to keep DVDs for as long as they wanted. 

7. Christiansen et al., HBR 2015
Low end footholds or new market footholds
“Good enough” products A
Netflix started as mailing services and fee based – then pivoted to subscription based all-you-can-watch

8. What should BB have done?
Christiansen et al., HBR 2015
Low end footholds or new market footholds
“Good enough” products A
Monitor
Set up a division & do not be afraid of cannibalization
What should BB have done?

9. A different “demon” Incumbents overfocus on existing major customers
Incumbent overfocus on high margins segments

10. What should BB have done?
Christiansen et al., HBR 2015
Low end footholds or new market footholds
“Good enough” products A
Monitor
Set up a division & do not be afraid of cannibalization
What should BB have done?

11. A A Low end footholds or new market footholds “Good enough” products
Christiansen et al., HBR 2015 A
Low end footholds or new market footholds
“Good enough” products A

12. being disruptive = guaranteed success?

13. A What should UVA do? Monitor
Christiansen et al., HBR 2015
Low end footholds or new market footholds
“Good enough” products A
Monitor
Set up a division & do not be afraid of cannibalization
What should UVA do?

14. A A Low end footholds or new market footholds “Good enough” products
Christiansen et al., HBR 2015 A
Low end footholds or new market footholds
“Good enough” products A

15. A A Low end footholds or new market footholds “Good enough” products
Christiansen et al., HBR 2015 A
Low end footholds or new market footholds
“Good enough” products A