Digital Disruption Likely To Come From Outside Your Industry

James McQuivey

Once upon a time, you could trust that your business was insulated from disruptive innovation because only people already in your industry had the skills and the tools to try to change your industry. Thus, McDonald's competed with Burger King, Crest competed with Colgate, and Dell competed with HP. When innovation did arise, it came from companies that had similar economics and were evaluated by Wall Street using the same criteria. That meant that competition, although fierce, stayed within fairly defined boundaries and real surprises were few.

Digital disruption will change that -- or already has, depending on your industry. Under digital disruption, any company of any size can make a play for your business. That's how the Zeo sleep monitor, a $100 device that can monitor your sleep nearly as effectively as a $3,000 sleep lab visit can, potentially disrupts research hospitals, the makers of sleep meds like Ambien and Lunesta, and eventually the insurance companies that have an interested in promoting your health. That's how Amazon is now a major competitor for TV show pilots, using its vastly different economics to justify buying shows that would normally have a narrow set of bidders among broadcast and cable networks. That's how startup software companies are building apps to insert themselves into consumers' lives in ways that bigger companies should have done first by offering menstrual cycle tracking, DIY home improvement cost estimating, and weight loss monitoring.

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Music Industry Stops Losing Money, Finally

James McQuivey

Yesterday The New York Times picked up the hopeful news from the global music business that the revenue free-fall from $38 billion a year more than a decade ago appears to have stopped at $16.5 billion, leaving the industry at less than half its pre-digital size. This bottoming out of the revenues will come as some relief to industry executives who have wished and prayed for this day because, until it actually arrived, nobody knew for sure what type of revenues to expect in the future. That can make running a business pretty tough.

The music industry is everybody's favorite example of digital disruption done wrong -- including mine, since I covered music for Forrester several times. I have some classic stories I could tell to illustrate the point about executives who believed that suing customers was the path to profitability and so on, but I'll spare you those. However, as the author of a book called Digital Disruption, I actually owe it to the music industry for teaching me a few key principles of how to manage digital disruption:

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Why My Hardcover Book Counts As Digital Disruption

James McQuivey

It is with great pleasure that I mark the arrival of Digital Disruption: Unleashing The Next Wave Of Innovation, by announcing that as of today, February 26th, you can buy Digital Disruption as … a hardcover book.

At first impression it may feel a bit wrong to publish a book called Digital Disruption in a form as old-school as a hardcover book. In fact, as I’ve traveled around talking about the book, several people have half-jokingly suggested it was hypocritical to do so. I have taken the ribbing with a smile, but when people have the time and interest, I explain to them that publishing in both eBook and hardcover is exactly what digital disruption requires.

Some erroneously assume that digital disruption only applies to cases where digital products replace physical ones. It’s true that when mobile banking replaces teller banking or digital music wipes out CDs, we call this digital disruption. But as I show in my book, there are many more ways that digital disrupts, ultimately creating more disruptions, more rapidly, in more industries, including – as I write in the book – industries as analog as pharmaceuticals and military camouflage.

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MWC 2013: More Global And More Disruptive Than Ever Before

Thomas Husson

It’s that time of the year: the pilgrimage to the Mobile Mecca, Mobile World Congress (MWC), in Barcelona. This is my 10th pilgrimage in a row and, needless to say, the event has changed tremendously over the past few years – from 3GSM in Cannes to the new venue in Barcelona this year. While CTIA is still very US-centric and CES is still a lot about TVs, MWC is really the only global mobile event with a strong presence of operators and handset manufacturers from all over the world. Every year the show becomes not only more global, but also more open to new categories of players — such as advertisers and developers — willing to make the most of mobile technologies, and more open to connected devices that go far beyond the traditional definition of a mobile phone. Markets are colliding and mobile innovation is at the center of these upheavals. MWC used to be a telecom show focusing mainly on mobile technologies, but the event is now bringing together people from every industry.

In the light of today’s first announcements, here is my take on how to put in perspective the announcements to be made at MWC 2013 in the coming days:

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Move Beyond The Campaign

Rob Brosnan

Standing in an aisle of a big box retailer, I bought a new electric shaver from a competing retailer’s online store. The store’s shaving display reminded me that my razor was dying. Not knowing which to choose, I twitched for my iPhone, scanned a barcode, read several reviews, explored competing products, found the best price, and ordered it with free shipping. I saved $75 over the same model I could have purchased then and there.

My example is commonplace today. Perpetually connected customers – 42% of US online adults and 37% in Europe – can engage brands at any place, any time, and at any velocity. The technology trends that lead retailers to worry about showrooming touch every industry. Each brand must anticipate connected customers’ demand for information, reviews, and engagement. They must realign technology, processes, and talent to recognize customers in microseconds, using real-time signals to predict their needs and paths to purchase. And they must see that this problem can’t be solved with faster technology alone.

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MOVE BEYOND THE CAMPAIGN

Rob Brosnan

Standing in an aisle of a big box retailer, I bought a new electric shaver from a competing retailer’s online store. The store’s shaving display reminded me that my razor was dying. Not knowing which to choose, I twitched for my iPhone, scanned a barcode, read several reviews, explored competing products, found the best price, and ordered it with free shipping. I saved $75 over the same model I could have purchased then and there.

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Sony Bets On The Past, Forfeits the Future

James McQuivey

Wednesday night, Sony hosted what was reported to be a crowd of more than a thousand people at a rare, Applesque new-product demo. There it debuted the next-generation Playstation, officially dubbed the PS4. The event lasted two hours and featured some of the most accomplished game developers in the world, all on stage to promise that the PS4 was going to make gaming even more lifelike, more responsive, and more addicting than it already is.

I could have saved the company the two hours and the cost of hosting the event. Because boil Sony's announcement down to its essence, and you get these simple words: Sony believes the future will be like the past and has built the game console to prove it.

Don't get me wrong; the console is definitely next-generation (or at least, the specs are next-generation, since the console itself did not make an appearance at the event). It has stunning graphics and the kind of processing power necessary to create lifelike movement and even give game characters artificial-intelligence capabilities that should make hardcore gamers hungry with anticipation for the end of the year (the most specific Sony got about the release timeframe).

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Nasscom 2013: Real Changes To Indian IT Services Are Underway

Christopher Andrews

I am just back from the whirlwind that is Nasscom India Leadership Forum 2013 in Mumbai, India. The Nasscom event is the premier event for the Indian IT services marketplace. Besides meeting great people, eating too much wonderful Indian food, and seeing action star and local legend Amitabh Bachchan in-person, the event provides a chance to check the pulse of the most important geographic hub for the IT services marketplace. 

Here are some of my key findings from the trip:

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Finovate Europe 2013: Digital Financial Innovation

Benjamin Ensor

FinovateI’ve spent the past two days at Finovate Europe in London, which has rapidly established itself as the leading European retail financial technology event of the year. This year’s event was bigger than last year’s, with 64 exhibitors spread over the two days.

Here are my impressions from the two days:

  1. Innovation is hard and usually incremental. Our expectations are so high. It’s easy to sit in the audience and think ‘I’ve seen something like that before’. It’s a lot harder to develop truly new ideas, let alone build them and market them. Innovation is necessarily incremental, moving into the adjacent possible opportunity as my colleague James McQuivey puts it (see him explain it on video here). True invention is extremely rare. As James puts it in his new book, “The most powerful ideas consciously draw from and incorporate elements that were being developed by others along the way, ultimately generating the best outcome in the shortest time at the most efficient cost.” That’s what makes events like Finovate so useful.
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Digital Disruption Front And Center In 2013

James McQuivey

You’re going to hear a lot about digital disruption in 2013. And not just from the traditional culprits, like Silicon Valley startups or Israeli engineers or Russian coders. You’ll hear about digital disruption from big companies like GM and G.E. Even agribusiness giant Monsanto has released apps designed to give farmers the digital tools they need to improve crop yield, right down to the square meter. Amid this digital melee, it's important to understand what digital disruption is and what it is not. Important enough that I've written a book about it

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If you’re not careful, when you hear stories about traditional companies like HBO setting up software development teams on the West Coast, you may conclude that digital disruption is about apps. Or if you listen too closely to the pitches at startup conferences, you may think that digital disruption is about social media. Or social TV. Or whatever new flavor excites the digital elite.

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