Thought for the Day: Disruption happens when the price drops and the profit increases. Incumbents fail.

  • The Myth of Macroinnovation:
    My experience with large companies and governments shows me that it is not a simple or trivial matter to recognize the benefits or marshal the resources. A common failure mode is where the leadership say they want disruption and innovation, the grass roots want it, but the middle management tiers aren’t incentivized to deliver it because their bonuses are tied to metrics on existing product lines. Disruption eats into existing businesses. “Maximizing Shareholder Value” is a wonderful  options focusing device but, without an explicit time-frame for that value, innovation risks shareholder lawsuits for sabotaging profitability.
  • The Disruption Talk
    A remarkable hour of video in which a VC explains the mechanics of disruption to assembled Googleheads. Beautifully delivered in a Jimmy Stewart presentation style. The irony does not seem apparent to either Fred Wilson, the presenter or his audience.
  • The Law of Disruption (Wikipedia)
    It’s this year’s buzzword, a great follow-up to disintermediation. Real change can not be embraced by the status quo. Losing this year’s profits is always too high a price to pay. Incumbents are always vulnerable to disruption. “Alvin Toffler in Powershift writes that a “…revolutionary new system cannot spread without triggering personal, political, and international conflict.” Because current personal, political and international relations rest upon the old system any new comer holds the possibility of upsetting that balance. In the midst of the “dilemma,” chaos reigns.
  • Unleashing the Killer App
    Here’s how Google does books. Note bookstore choices and the ‘find it in a library‘ link. The “library project” is an interesting one in which Google becomes the global card catalog. More disruption
  • How Technological Disruption Changes Everything
    Consider this an official recommendation that you read  “The Innovator’s Dilemna“. The HBS synopsis is a good start. Big companies don’t innovate because it rots their hearts out, literally. Agile entrepreneurs can always beat the incumbent.

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