John Sutherland's take on shaping your future
Companies value-disrupting their markets; a dialogue
Posted on 21 Jan 2010
If a disruption is a change to the norm, then Value-Disruption is a change to the norm that creates value.
I’d like to start a dialogue about this topic.
I’ve been writing recently about value-disruption based on work by Clayton Christensen and Alex Manu. The key ingredient seems to be: a new resource and associated interfaces (a value-disruptor) allow a new behavior to emerge in a target group that satisfies a human motivation. This new behavior disrupts relationships (in a positive way) and so creates new value.
LinkedIn Question
After having written a number of posts on this topic (here, here, here, and here) I wanted to see what others thought so I asked professionals in LinkedIn this following question. “What examples can you give me of companies that are value-disrupting their industry?“
I received some interesting answers back. (And I’m going to ask you to submit your thoughts at the end, with a twist.)
Well Known Examples
First, well know examples were submitted.
- Circe de Soleil
- Apple with iTunes
- Nintendo Wii
- Google with many of its applications: Search, Google Maps, email,…
- Many social media sites like Facebook, LinkedIn, Twitter
Then a couple of airlines.
- Virgin Air
- Porter Air
While the airline examples offer a better service than others and have carved out a niche, I can’t see how they have a disruptor in play that allows a new behavior to emerge. (ennova)
Tor Grønsund suggested
Swiffer (P&G) disrupts the vacuum cleaner.
Connecting a power-driven machine doesn’t work for small jobs. So instead you use a swiffer which has reasonable “pick-up” capabilities. A small but reasonable level of new behavior (ennova)
Asif Khan suggested
Vex Canada
They are building a national WIFI network that’s free. They will offer free WIFI in restaurants, coffee shops, airports etc. by having suppliers to these locations pay for installation and running costs in return for advertising for people using the wifi.
They should certainly disrupt the industry of paid WIFI in Canada and allow 1000′s of people to connect to the web in 1000′s of new hotspots around the country. Significant new behavior can now emerge. (ennova)
George Hazapis suggested
The publishing industry is undergoing a transformation, re-engineering its value chain.
Vizu
One example would be Vizu, a company behind Ad Catylyst, a digital ad effectiveness measurement system. The company measures how online ads impact viewer perceptions of key brand attributes.
Zeta
Another company is Zeta which provides complete digital solutions to enable publishers to market through email and other digital channels to drive traffic and improve engagement. Companies are transforming the industry by taking costs out of the business, increasing the engagement factor for print, adding value to content, improving web-based CPMs, assisting publishers in increasing the value of content within their eco-systems through the use of short codes, and tagging. There is a burgeoning mobile market and publishing is going online & mobile.
Boy, you can just imagine all the new behaviors will emerge from brand managers now that they have tools that gives them real data. (ennova)
The hospital business model is undergoing disruptive innovation as the hospitals need to keep everything & everyone well at low cost. Hospitals should cede market share to disruptive business models, patient by patient, disease by disease starting at the simplest end of the spectrum of disorders that they now serve. Hospitals need to deconstruct their activities operationally into two different business models: solution shops and value-adding process activities.
Aravind Hospitals
in India which do eye surgery, and
Coxa Hospital
in Finland which focuses on hip and knee replacement surgery.
People travel out of country to get top notch medical care at lower rates and faster than they can in their country. Significant behavior change. (Ennova)
Thanks George for these four strong examples.
First, thanks to all the LinkedIn contributors for your descriptions of value-disruptions.
So, what examples would you provide? Most importantly what do you believe is the relationship between the degree of behavior change and their business success?
Lastly, thank-you for visiting http://ennova.ca




3 comments
Thanks for the mention John. I also think the Linux Netbooks example would be interesting as is describes the synthesis of two disruptions, respectively in the SW/OS and OEM industries. E.g whether this causes double impact?
I found this article useful in a paper I am writing at university. Hopefully, I get an A+ now!
Thanks
Bernice Franklin
UGG Boots
Good luck
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