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James McQuivey - Digital Disruption: Unleashing the Next Wave of Innovation

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James McQuivey Digital Disruption: Unleashing the Next Wave of Innovation
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The barriers to entry in your market just vanished. Unexpected competitors are swarming in. Are you ready?

You always knew digital was going to change things, but you didnt realize how close to home it would hit. In every industry, digital competitors are taking advantage of new platforms, tools, and relationships to undercut competitors, get closer to customers, and disrupt the usual ways of doing business. The only way to compete is to evolve.

James McQuivey of Forrester Research has been teaching people how to do this for over a decade. Hes gone into the biggest companies, even in traditional industries like insurance and consumer packaged goods, and changed the way they think about innovation. Now hes sharing his approach with you.

McQuivey will show you how Dr. Hugh Reinhoff of Ferrokin BioSciences disrupted the pharmaceutical industry, streamlining connections with doctors and regulators to bring molecules to market far fasterand then sold out for $100 million. How Charles Teague and his team of four people created Lose It!, a weight loss application that millions have adopted, achieving rapid success and undermining titans like Weight Watchers and Jenny Craig in the process.

Regardless of your background and industry, you can learn how to be a digital disruptor too. First, adopt the right mindset: Take risks, invest as cheaply as possible, and build on existing platforms to find the fastest path to solving a customers problem.

Second, seek the adjacent possiblethe space just next to yours where new technology creates opportunity. Thats how Benjamin Rubin and Paolo DePetrillo of Zeo created a $100 sleep monitor that does much of what youd get from a $3,000 sleep lab visit.

Finally, disrupt yourself. Use these tools to make parts of your business obsolete before your competitors do. Thats what Tim FitzRandolph did at Disney, creating a game that shot to the top of the app store charts.

With the tools in this book you can assess your readiness, learn the disruptive mindset, and innovate rapidly, starting right within your own business.

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Forrester and Technographics are trademarks of Forrester Research Inc All - photo 1
Forrester and Technographics are trademarks of Forrester Research Inc All - photo 2
Forrester and Technographics are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners.
Copyright 2013 Forrester Research, Inc.
All rights reserved.
No part of this book may be reproduced, or stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without express written permission of the publisher.
Published by Amazon Publishing
P.O. Box 400818
Las Vegas, NV 89140
ISBN-13: 9781477800126
ISBN-10: 1477800123
LCCN: 2012921030
CONTENTS
INTRODUCTION
I ts not just you. Things really are changing faster than ever before.
At Forrester, weve been tracking technology trends for more than twenty years. The difference is that now, theyre not just technology trends. Theyre consumer trends, and potent ones at that. Today, customers use technology as a lever to exert more and more power over the companies. Are you ready for this?
Companies used to get dominance through scale. In the first half of the twentieth century, that scale came from manufacturing, and companies like GM ruled. Later in the century, dominance came from supply chains (think Walmart) or information mastery (think Amazon). But in the twenty-first century, none of these sources of scale matter. Only customers do. This is truly the age of the customer.
In this age, old strategies, such as locking in customers, are pass because those customers can read reviews on a mobile device and switch allegiances in an instant. The only source of competitive advantage now is a focus on knowledge of and engagement with customers.
A new breed of competitors has arrived: digital disruptors. These companies and individuals embrace digital tools and platforms to get closer to customers and engage them more deeply. These competitors can come from anywhere and, unopposed, they will steal your customers and disrupt your business.
As James McQuivey shows in this groundbreaking book, preparing for a world like this requires a new mindset and new set of behaviorsone that creates a perpetual customer connection even as it embraces disruption. This mindset may have originated with digital disruptors, but as youll read, even big old companies like Disney have embraced it.
Prepare yourself. What James has to say is not comfortable to read, but it may well be the best tool you have to prepare yourself for the coming disruption.
Josh Bernoff, SVP Idea Development,
Forrester Research, Cambridge, Massachusetts
Digital Disruption What It Is and What It Means for You T his book is about - photo 3
Digital Disruption: What It Is and What It Means for You
T his book is about the fundamental change in our lives that will be caused by digital disruption. In these pages we will prove that digital disruption exists, demonstrate how it can be used by anyone in any industry, and implore you to make yourself as readyas disruptiveas you possibly can be. Why? Because digital disruptors are turning our worldand your industryupside down.
What will digital disruptors do? Theyll help you lose weight, then theyll help you decide how to do your hair on a Friday night. Theyll make your childs violin lesson really soar. Theyll deliver you a morning report of the time you spent in REM sleep. Theyll help your business glean one hundred times as many insights from its customer database at one one-hundredth the cost. Theyll help you treat major illnesses, or better yet, theyll watch you 24/7 and identify your risk for illness before you even fall prey to it. Theyll help you figure out which Thai restaurant is worth trying out at the same time that they warn you that your teenager took the car to a neighboring town when she should have been in school.
Value comes from seeing what customers need and delivering it. Digital disruptors will do all of this at lower cost, with faster development times, and with greater impact on the customer experience than anything that came before. To prove this, Im going to go all the way down to the lowest unit of analysis. Im going to introduce you to the youngest possible face of digital disruption.
Picture 4
Thomas Suarez is a typical twelve-year-old working his way through the sixth grade in the South Bay area of Los Angeles. He describes himself this way: Ive always had a fascination with computers and technology. Always for him goes all the way back to the fourth grade, when Thomas decided that he wanted to program something.
His first app, Earth Fortune, went live in 2010. It has been rated 127 times and earned a respectable three-star rating in the iTunes App Store. Its a fortune-teller thats kind of cute, a bit like the origami cootie catcher we used to play with when we were in grade school, that told arbitrary fortunes to those willing to believe them. But the story here is not the app, it is Thomas himself and the many Thomases yet to come. Young Thomas gave a talk at the Manhattan Beach TEDx conference in October 2011, during which he explained, My favorite and most successful app is Bustin Jieber, which is a Justin Bieber Whac-A-Mole! This app was posted just before the holidays in 2010, and while it hasnt earned as many reviews as Earth Fortune, it certainly garnered laughs from the TEDx audience.
Bustin Jieber wont change the world. The top review, last time I checked, gave it one star and called it crap, adding that, When u take money from me for crap, Im upset no matter how old u r. Put down the programming books and read up on user experience and usability and then sell something for a dollar. The second review gave it five stars and said, I just donated $99 cents [ sic ] for your future games ;-). While they disagree, both reviewers are taking seriously the fact that Thomas is a twelve-year-old app developer.
If you just play his apps, you might be tempted to discount Thomas. You might conclude that the two million views his TEDx video has scored on YouTube or the write-up about Thomas in the Huffington Post are just hype. But the real story is best illustrated with a third reviewanother five-star ratingwhich read, I had $1 left in my iTunes account and decided to spend it on this, just because Im just like you. Im 13 and trying to learn iOS/Cocoa development, and this is really encouraging. Thank you.
Why did Thomass talk garner two million video views? Listen to what he says:
A lot of kids these days like to play games. But now they want to make them. And its difficult, because not many kids know where to go to find out how to make a program. I mean, for soccer, you could go to a soccer team, for violin, you could get lessons for a violin. But what if you want to make an app? Where do you go to find out how to make an app?
Thomas explains how the iPhone SDK (the software development kit that Apple makes available for app developers) opened up a whole new world of possibilities for me. And after playing with the software development kit a little bit, I made a couple apps, I made some test apps. One of them was Earth Fortune. When he was ready to put his new app up on the app store, he had one last hurdle to clear. I persuaded my parents to pay the ninety-nine-dollar fee to be able to put my apps on the app store. They agreed, and now I have apps on the app store.
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