1.
Digital Disruption: Unleashing the
Next Wave of Innovation
James L. McQuivey, Ph.D.
Vice President, Principal Analyst
@jmcquivey
http://solutions.forrester.com/disruption

2.
The barriers to entry in your market just
vanished. Are you ready?

3.
A disruption long in the making
© 2013 Forrester Research, Inc. Reproduction Prohibited

4.
Two objections to digital disruption
1
People will never do that
2
It will cost too much to do
© 2013 Forrester Research, Inc. Reproduction Prohibited

5.
Digital disruption epitomized
“When companies adopt
technology, they do old
things in new ways;
internalize
when companies internalize
technology, they find
disruptive new things to
do.”
They become digital disruptors

6.
Digital disruptors do this
›
They will build Better product experiences
›
That create Stronger customer
relationships
›
Bringing it all to market Faster
You have to do this, too

7.
Digital disruption is better, stronger,
faster
Old disruption
Digital disruption
10xtors
the inn va
o
1/10th
the cost
100X
the power
Source: October 27, 2011, “The Disruptor’s Handbook” Forrester

8.
Tablets are a symptom, not a cause, of
disruption
Your customers and employees have already
invested in the devices you’ll depend on

9.
Digital disruption is built on digital
platforms
› Devices lay the foundation
› Software builds the experience on top of it
› Consumers believe in it
Digital platforms provide the infrastructure
of the digitally disrupted economy
© 2013 Forrester Research, Inc. Reproduction Prohibited

10.
The five platforms vying for consumer
control
• Tools to connect to
consumers
• Open development
environments
• Infrastructure
resources

11.
To enable the next product
experiences, you must digitally
Product
Process
disrupt your product and your process
© 2013 Forrester Research, Inc. Reproduction Prohibited

12.
employees &
Step 1: Harness digital consumers
partners
60+ million
155+ million
30+ million
Apple took two years to sell 1 million iPods.

13.
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

14.
Disney: a big company gone disruptive
▪
Disney learned from Angry Birds
what people wanted next, creating
‘Where’s My Water?’
▪
This tests the waters for Disney in
apps and YouTube – both critical
fronts in the digital media future
▪
Importantly, it gave Disney the
chance to innovate adjacent
possibilities

15.
Disney continues innovating the adjacent
possible

16.
Section 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

17.
Digital disruption yet to come: the Magic Mirror
Mirror, Mirror on the wall…
Magic Mirror
Eyes
Lips
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report
Hair
Skin

18.
Digital disruption yet to come: the Magic Mirror
Mirror, Mirror on the wall…
Magic Mirror
Eyes
Hair
Lips
Skin
Call
Kerry
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

19.
Digital disruption yet to come: the Magic Mirror
Mirror, Mirror on the wall…
Magic Mirror
Eyes
Lips
Call Kerry
Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report
Hair
Skin

20.
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

21.
© 2013 Forrester Research, Inc. Reproduction Prohibited

22.
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
What is the most unexpected place
you will serve your customer in the
future?

23.
Nestle off to a good start with its product innovation
› BabyNes: A high-end baby
formula preparation device
› Good: Customer-focused,
built in cross-functional R&D
team, funded independently
› Better: Copy Withings

24.
UPS launches a new, revenue-generating
customer relationship
UPS has created a freemium-to-subscription business
relationship with 2.5 million recipients of its packages,
giving them the opportunity to use apps and web
experiences to opt for better delivery outcomes – change
of time or location. This has created new revenue
opportunity for UPS as some of its customers pay $40 a
year to have even more customized delivery options.

25.
A large payments processor saves time,
money, and increases security
By taking advantage of Terracotta’s BigMemory in-memory
data processing cloud, this financial services company has
gone from applying just 50 fraud detection rules to
thousands, dramatically improving accuracy while lifting
transaction processing limits by 30x. The result is an
estimated $10 million a year saved from fraud detection
mistakes and fees for latency

26.
Questions for aspiring digital disruptors:
› How will you create an ongoing digital customer
relationship?
› How will you generate more ideas more quickly?
› What does your total product experience look
like?
› What is the role of technology & operations?
› What partners will get you there quickly?
What does it take to do this?
© 2013 Forrester Research, Inc. Reproduction Prohibited

27.
The path to disruption
›
›
›
Senior-level commitment to putting the customer first
›
›
Test and measure; expect and accept failure
Disrupt the process in order to disrupt the product
Give authority to small teams to generate focused
innovations
Partner to get there quickly
Release the disruptor within

28.
What do I do now?
Find out more about digital disruption:
see videos, take a self-assessment, and
download free chapters from the book by
James McQuivey:
http://solutions.forrester.com/disruption
Forrester wrote the book on Digital
Disruption:
Buy it now on Amazon.com.
© 2013 Forrester Research, Inc. Reproduction Prohibited