This document discusses digital disruption and how companies can harness innovation to stay ahead. It argues that digital disruptors can build better products and customer experiences faster by innovating adjacent possibilities. However, most companies are not ready for digital disruption despite seeing opportunities. The document urges companies to assess their digital disruption readiness and release the disruptor within by cultivating the right skills, policies, energy and solutions to adapt.

1. Digital Disruption: Unleashing The
Next Wave of Innovation
James L. McQuivey, Ph.D.
Vice President, Principal Analyst
@jmcquivey
October 2014 | Prepared for Delight 2014

2. Disruption is accelerating
© 2013 Forrester Research, Inc. Reproduction Prohibited 2

3. What used to stop digital disruption
1 People will never do that
2 It will cost too much to do
1 We don’t know how to disrupt
ourselves
© 2013 Forrester Research, Inc. Reproduction Prohibited 3

4. Digital disruptors are better, stronger,
faster
› They will build Better
product experiences
› That create Stronger
customer
relationships
› Bringing it all to market Faster
Everyone in every profession can – and must – do this, too

5. How digital disruption economics work
Old disruption Digital disruption
10 x
the innovators
1/10th
the cost
100X
the power
Source: October 27, 2011, “The Disruptor’s Handbook” Forrester report
© 2013 Forrester Research, Inc. Reproduction Prohibited 5

6. Step 2: Generate more ideas more
quickly
BY INNOVATING THE ADJACENT POSSIBLE
?
Don’t build the future; build the next thing
people really need and let the future find you.
© 2013 Forrester Research, Inc. Reproduction Prohibited 6

7. Step 3: Deliver total product experiences
Total product experiences go beyond
traditional boundaries — onto new
platforms, during new moments,
leading to deeper, more measurable
customer engagement and satisfaction

8. Digital relationships extend the product experience
Mirror, Mirror on the wall…
Eyes Hair
Lips Skin
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

9. Digital relationships extend the product experience
Mirror, Mirror on the wall…
Eyes Hair
Lips Skin
Call
Kerry
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

10. Digital relationships extend the product experience
Mirror, Mirror on the wall…
Eyes Hair
Lips Skin
Call
Kerry
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

11. For which companies is the Magic Mirror
an adjacent product experience?
› Media companies have the content
› Retailers sell the products
› Manufacturers want the customer loyalty
› Platforms want to enable all of it
Whoever holds the customer
relationship…whoever consistently
delights the customer will win

12. What will those experiences look like?
Someday… Today

13. There are dozens of experience
points to design here – some to
invent completely

14. The disruptor will get there first
› See the consumer need today
› Comprehend the experience in today’s context
› Foresee how it will expand in the future
› Design today with that “next” consumer in mind

15. The spoils will go to those who can
disrupt – the experience, the product
YOU MUST HAVE A DISRUPTOR’S:
P
nergy
kills
S
E
olicies
We conducted a global survey of executives
to see if they are ready.
© 2013 Forrester Research, Inc. Reproduction Prohibited 15

16. People see digital coming but aren’t
ready for it
PERCENT THAT AGREE WITH EACH STATEMENT (TOP-2 BOX)
89%
65%
38%
32%
There is significant opportunity for digital
tools and experiences to change the
industry we serve
People in our company are excited about
the changes that digital will bring to our
company
People in our company have the skills
needed to adapt to the changes that digital
will bring to our company
Our company has policies and business
practices that will enable us to adapt to the
changes that digital will bring to our
company
E
S
P
24%
Source: June 2012 Digital Readiness Assessment
Detailed analysis in new report, Assess Your Digital Disruption Readiness Now, March 2013
49%
Release the disruptor within
© 2013 Forrester Research, Inc. Reproduction Prohibited 16

17. Thank you
#digitaldisruption
James L. McQuivey, Ph.D.
VP, Principal Analyst
@jmcquivey