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Thoughts on ho startups disrupt the 800 pound Gorilla

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Information about Thoughts on ho startups disrupt the 800 pound Gorilla
Business & Mgmt

Published on February 27, 2014

Author: cdg2sfo

Source: slideshare.net

Description

Thoughts on how to disrupt the 800 pound Gorilla. What are the phases of disruption and why the business model matters as much as the technology, if not more.
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Thoughts on beating the 800 pound Gorilla Réza Malekzadeh, rm@malekzadeh.com

February 11, 2014 2 Definition • Disruption displaces an existing market, industry, or technology and produces something new and more efficient and worthwhile. It is at once destructive and creative. Harvard Business School professor and disruption guru Clayton Christensen

3 February 11, 2014 The New Classic Example Market Cap: $160+B Market Cap: <$1B

4 February 11, 2014 But Not Just e-tail anymore 2014 Revenue expected is over $3.2B

5 February 11, 2014 Other Examples Winners Losers

February 11, 2014 4 stages of Disruption 6

February 11, 2014 Phase 1 • New tech, product or service is available, is a limited, but different, replacement for some existing, widely used and satisfactory solution • Incumbent reaction: Inferior technology, limited features, lack of maturity, etc. • Find early adopters, people willing to take risk vs. • Find focused target(s) 7

8 February 11, 2014 Phase 2 • Innovators keep their focus and need to increase adoption rate while filling gaps with the critical missing features • Incumbents continue to be dismissive and negative • Turn early adopters into fans and evangelists vs.

February 11, 2014 Phase 3 • Now the market calls for the replacement of incumbents: customers, partners, influencers • There is natural convergence towards the new product / technology 9

February 11, 2014 Phase 4 • The melding creates whole new categories of products and services, built upon a base of technology that appears completely different. 10

11 February 11, 2014 Key Lessons • Innovation is not disruption • Cheaper is not a disruption • Focus at every stage • Technology is not the key disruptor, business model is • Startups need friends: build a successful ecosystem • Incumbents, react fast! Disaggregation of compute And the same for networking…

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