Tag Archives: innovation

The Disruptive Innovation Machine

Identify, Differentiate & Interact with… Everything

Look out your window. Thanks to four disruptive forces, everything you see has the potential to be a business opportunity, if you keep three words in mind: Identify, Differentiate, and Interact.

The Disruptive Innovation machine lists these four disruptive forces around the edges (not coincidentally where disruption happens first) and has three empty boxes for you to add a phrase to correspond with each essential word.

That is, what can disruptive innovation help your customers IDENTIFY? How can it help them DIFFERENTIATE this person… place… thing… idea… event from all else? What options can it offer them to INTERACT with it?

Let’s walk through an example of how you might use the Machine.

You could start by thinking of a specific segment of customers. For this example, let’s imagine you run a busy doctor’s office and the segment you are targeting is busy tech-savvy patients.

The Machine will help you figure out how your office could leverage wireless devices and one or all of the disruptive forces that are starting to rip apart existing business models. These forces (Digital Sensors, etc.) are shown at the outer edges of the Machine.

Write a noun in the first box, which stands for Identify. You are trying to combine three words to describe an innovative new service you could provide to your patients. Let’s use “DIET.” This means your service will be identifying proper diets for patients.

Now, we need an adjective for the Differentiate box, which means on what basis will you be helping patients differentiate between diet options? We could write easiest or cheapest, but for now we will write “HEALTHIEST”.

Finally, we need a verb for the Interact space, which represents how patients will access the results. You could write demonstrate (for video demonstrations by a nurse). Let’s stick with “DEMONSTRATE”.

As you use this tool, try various combinations, and try to include the disruptive forces in your answers. For example, a doctor’s office could list different ways to use Digital Sensors (noun, in the Identify box) to better serve patients. It could encourage certain patients to wear a wristband or other device that monitors the patient’s health and reports any anomalies to the healthcare provider.

Likewise, the physician could leverage Pervasive Memory to utilize patient’s sensors data over a period of months and years. This doesn’t have to involve more work for the doctor; numerous apps are flooding the market that accomplish such feats. The trick is mostly for healthcare providers to recognize these disruptive forces and incorporate the best of them into interactions with patients.

The Digital Innovation Machine can produce countless possible innovations, and many of them will generate millions or billions in profits over the next few years. At first glance, you might underestimate the power of this tool. We’d be happy to discuss it, if you like. This sort of thinking is also described in detail in our book.

Disruptive innovation

7 Ways to Disrupt Your Industry

Thousands of readers have shared our book excerpt at FastCompany, 7 Ways to Disrupt Your Industry. So we decided to make life easy for you and create this handy wallet card.

Can a wallet card really be disruptive, you ask? Good question.

Anything that keeps you focused on building services for smart customers is disruptive. If it helps to have something to pull out and look at a few dozen times a week, so be it.

If you really want to build something big and profitable, we explain ten – count ‘em , ten – disruptive ideas in Smart Customers, Stupid Companies.