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Finding the Inflection Points
 Discover that Great Idea to Connect with
            your Target Market

           Winston Damarillo
Competing with the Giants

                                                          High-end

                                                                       Good products by
                         Oracle, IBM, BEA                              good companies will
                                                                       exceed customer
  Functionality




                                                                       requirements over time

                              ts
                          b en                           High-volume
                     um
                  Inc
                                                                       In almost all cases, the
                               er ts
                             om n                                      disruptor brings to
                           st eme
                        Cu uir              ce   Red Hat, MySQL        market products with
                           q             ur
                        Re           nS
                                        o                              less capabilities
                                   e
                                Op

                                      Time
Agents of Change
Rapid growth of consumer
   technology markets
Rise of global competitors    t
                              a
                              r
Declining barriers to entry
                              g
 due to outsourcing and       e
  on-demand business          t
         models
                              m
                              a
                              r
Rise of MicroISVs             k
                              e
                              t
Harnessing the Net
Community enhanced co-Creation
    Open source software and process
    Community-generated content (e.g.
    Wikipedia, MySpace
    Iterative Beta (Google)


Real-time global Distribution
       Digital downloads
       Software as a Service (SaaS)
       Aggregators


Worldwide Platform for Promotion
     Engines
     2-way Web ... Blogs, Forums, Twitter
Win from the Bottom

Create markets through an
iterative process
Connect to a global
distributed market = Internet
 Push small increments out
 to your customers
 Let your product grow
 organically and let your
 customers see this
Strategic Differentiation

                                 Low-end disruptive innovations
                                 that address overserved
                                 customers with a low-cost
                                 model

“To !and quot;t among # crowd,         Ex. Linux vs. Microsoft
                                   Windows
do not build yquot;r product for #
                                 New-market disruptions that
        #1 company.”             compete vs. non-consumption
Iterative Customer
              Acquisition
                              S E E

Requires a combination of “seeing” and “acting”

  “See” as a process = continuous look-out for disruption

  Act to see = engage with prospects to yield key insights on the future

  Foster vision plurality = nurture internal diversity, while managing
  alternatives

  Institutionalize the vision = shared by the company as a whole

  Stage commitment with iterated actions

  Reach out to new networks

                              A C T
Modularization of Products

Loosely coupled technology => loosely coupled businesses

  Businesses will depend on services that are combined, mixed,
  matched and re-used

Made to Order like Dell

  Collaborative innovation => modular, standardized building blocks
  that can be assembled on-demand for specific requirements

Applications => Commoditization

  Aggregated services on-demand

  Service-oriented
Disruption tests
1.  Is there a large population who historically have not had the resources
to do this thing for themselves, and as a result have gone without it
altogether or have needed to pay someone with more expertise to do it for
them?

2.  Do customers go thru an inconvenient process of accessing the
product?

3.  Are there customers at the low-end of the market who would be happy
to purchase a product with less (but good enough) performance if they
could get it a lower price?

4.  Is it possible to create a business model that will yield attractive profits
at the discount prices required to win the customers at the low end?

5.  Is the innovation disruptive to all of the significant incumbent firms in
the industry? 
                                                               - The Innovator’s Solution
Questions?

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Technopreneurship - Idea Generation

  • 1. Finding the Inflection Points Discover that Great Idea to Connect with your Target Market Winston Damarillo
  • 2. Competing with the Giants High-end Good products by Oracle, IBM, BEA good companies will exceed customer Functionality requirements over time ts b en High-volume um Inc In almost all cases, the er ts om n disruptor brings to st eme Cu uir ce Red Hat, MySQL market products with q ur Re nS o less capabilities e Op Time
  • 3. Agents of Change Rapid growth of consumer technology markets Rise of global competitors t a r Declining barriers to entry g due to outsourcing and e on-demand business t models m a r Rise of MicroISVs k e t
  • 4. Harnessing the Net Community enhanced co-Creation Open source software and process Community-generated content (e.g. Wikipedia, MySpace Iterative Beta (Google) Real-time global Distribution Digital downloads Software as a Service (SaaS) Aggregators Worldwide Platform for Promotion Engines 2-way Web ... Blogs, Forums, Twitter
  • 5. Win from the Bottom Create markets through an iterative process Connect to a global distributed market = Internet Push small increments out to your customers Let your product grow organically and let your customers see this
  • 6. Strategic Differentiation Low-end disruptive innovations that address overserved customers with a low-cost model “To !and quot;t among # crowd, Ex. Linux vs. Microsoft Windows do not build yquot;r product for # New-market disruptions that #1 company.” compete vs. non-consumption
  • 7. Iterative Customer Acquisition S E E Requires a combination of “seeing” and “acting” “See” as a process = continuous look-out for disruption Act to see = engage with prospects to yield key insights on the future Foster vision plurality = nurture internal diversity, while managing alternatives Institutionalize the vision = shared by the company as a whole Stage commitment with iterated actions Reach out to new networks A C T
  • 8. Modularization of Products Loosely coupled technology => loosely coupled businesses Businesses will depend on services that are combined, mixed, matched and re-used Made to Order like Dell Collaborative innovation => modular, standardized building blocks that can be assembled on-demand for specific requirements Applications => Commoditization Aggregated services on-demand Service-oriented
  • 9. Disruption tests 1.  Is there a large population who historically have not had the resources to do this thing for themselves, and as a result have gone without it altogether or have needed to pay someone with more expertise to do it for them? 2.  Do customers go thru an inconvenient process of accessing the product? 3.  Are there customers at the low-end of the market who would be happy to purchase a product with less (but good enough) performance if they could get it a lower price? 4.  Is it possible to create a business model that will yield attractive profits at the discount prices required to win the customers at the low end? 5.  Is the innovation disruptive to all of the significant incumbent firms in the industry?  - The Innovator’s Solution