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Dealing with Darwin by Geoffrey Moore. http://www.dealingwithdarwin.com/ http://www.youtube.com/watch?v=vh8dwbi6yRM. =. 0. Multiple innovation initiatives Bubble-up management. Innovation Strategy Remember Your Vector Math!. Core & Context. Core. Context. Conservatives:.
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Dealing with Darwinby Geoffrey Moore http://www.dealingwithdarwin.com/ http://www.youtube.com/watch?v=vh8dwbi6yRM
= 0 Multiple innovation initiatives Bubble-up management Innovation StrategyRemember Your Vector Math!
Core & Context Core Context
Conservatives: Stick with what’s proven! Skeptics: Just say No! Underlying Drivers in Growth Markets Technology Adoption Strategies Pragmatists: Stick with the herd! Visionaries: Get ahead of the herd! Techies: Just try it!
Main Street Tornado EarlyMarket Bowling Alley Technology Adoption Life Cycle Chasm
Indefinitely elastic middle period Fault Line! E The Category Maturity Life Cycle C Growth Market D Market Growth Mature Market B Declining Market A End of Life Technology Adoption Life Cycle Time
C B D A E Cisco Systems andThe Category Maturity Life Cycle • Internet Routers • Core • Edge • Access • Internet Switches • Modular • Stackable • Advanced • Technologies • VOIP • Security • Wireless • SAN switches • Home Networking • Wireless networks • VOIP adapters • Non-Internet • Protocol Support • SNA • ATM Frame Relay • Novell Netware • Etc. • Sector Futures • Data Center Virtualization • Service Provider Triple Play • The Networked Home • Problem Children • Optical network equipment • Service Provider access
Consumers Consumers Offer Offer Consumers Consumers Technology Offer Offer Offer Offer Consumers Consumers Offer Offer Shared Infrastructure Distribution Channel Consumers Consumers Volume Operations Model Brand Advertising Promotions
Volume Operations Complex Systems Cyclicality & Strategy Volume operations commoditize categories created by complex systems C1 V1 C2 V2 C3 V3 Complex systems respond by creating the next level of complexity
Organic Renewal Acquisition Renewal Renewal Innovation A Broad Universe of Innovation Types Line Extension Innovation Enhancement Innovation Marketing Innovation Experiential Innovation Platform Innovation Product Innovation Harvest & Exit Disruptive Innovation Application Innovation Value Engineering Innovation Integration Innovation Process Innovation Value Migration Innovation
Line Extension Innovation Enhancement Innovation Marketing Innovation Experiential Innovation Platform Innovation Product Innovation Renewal Innovation Harvest & Exit Disruptive Innovation Application Innovation Value Engineering Innovation Integration Innovation Process Innovation Business Model Innovation Four Innovation Zones Customer Intimacy Zone Product Leadership Zone Category Renewal Zone Operational Excellence Zone
Innovation Types for Growth MarketsThe Product Leadership Zone Platform Innovation Product Innovation Disruptive Innovation Application Innovation
Innovation Types for Growth Markets Product New Existing Disruptive Innovation Application Innovation New Market Product Innovation Platform Innovation Existing
Innovation Types for Mature MarketsThe Customer Intimacy Zone Line Extension Innovation Enhancement Innovation Marketing Innovation Experiential Innovation Customer Intimacy Zone
Innovation Types for Mature MarketsThe Operational Excellence Zone Operational Excellence Zone Value Engineering Innovation Integration Innovation Process Innovation Value Migration Innovation
Organic Acquisition Category Renewal Innovation Types for Declining MarketsLeveraging Category Renewal Harvest & Exit
Core Context Core Becomes Context Over TimeThe End of Core is Commoditization Video games & downloads Camera functionality SMS messaging Color screens Fashionable accessories Longer battery life Subsidized cell phones Cellular Telephony Example
Core Context Core Context Context Build-up Established Enterprise Start-up
Two Birds, One Stone Extract resources from context to repurpose for core
Core Process creates differentiation that wins customers Context All other processes Risk Differentiation Core/Context Analysis Framework Mission Critical Process shortfall creates serious and immediate risk Non-Mission-Critical All other processes
Deploy Manage Invent Offload Fund next innovation The Cycle of Innovation Manage Mission-critical Processes At Scale Deploy Differentiation At Scale Core Context Mission Critical II III Extract Resources To Repurpose For Core I IV Non-Mission-Critical Invent Differentiated Offering
Mission Critical Non-Mission-Critical Clinging to Context How Resources Get Stuck But lack of resources here results in failure to deploy! Resources get stuck here Core Context Mission- critical risk II III I IV Resources are added here for support Resources still get invested here
The Five Levers ModelExtracting Resources from Mission-Critical Context • Centralize.Bring operations under a single authority to reduce overhead costs and create a single decision-making authority to manage risk • Standardize.Reduce the variety and variability of processes delivering similar outputs to further reduce costs and minimize risks. • Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. • Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost resources, and instrument the process for monitoring and control. • Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate monitoring systems into Service Level Agreement Core Context Requires specialized support
The Problem with OutsourcingWhat Happens to the Work Force? Core Context Mission Critical II III I IV Enabling Resources Wanted Here Resources Available Here People being released lack the skills to fill the positions being opened
B C A Resource Recycling II III I IV Work circulates clockwise People recycle counter-clockwise
Deployment Zone Optimization Zone Invention Zone Resource-Recycling Zones Program managers Think inside the box to deploy processes at scale Handoff # 2 Handoff # 1 II III I IV Entrepreneurs Think outside the box to create new core Process optimizers Think inside and outside the box to extract resources
Resource Recycling Meets Outsourcing 2 4 6 5 1 7 II III I IV 3 Zone rotations drive perpetual innovation