Introduction: Chapter 1

Ladies and gentlemen welcome to innovate or fade.

I am your facilitator Smriti Khanna and I'm super excited to take you on this journey to
understand disruptive innovation.

Together we're going to explore what disruptive innovation is why it's killing companies
and how you can change to thrive in today's innovation age.

SLIDE 3.

So let's kick things off by asking that critical question why why do we innovate.

Why is it so important we innovate to get more of what we want.

Specifically there are four steps here.

Step one you need to desire more of something.

Step two you're going to encounter a problem.

How do I get more of what I want.

Step 3 You need to solve this problem.

And Step 4 or your problem solving efforts arrive at a solution giving you what you want.

SLIDE 4

For example once upon a time there's a dark age a terrible time when Travelling meant
huge logging bills hence making travelling around a reasonable a dream.

Imagine vacation meant once in two years evet and spaving to spend later

And basically what happened was people said we want to travel the world and
experience the local culture

So how can we do this? As this seemed impractical

So we get involved with solving the problem of pocket friendly travelling and cherishing
the experience of local thread.

And we produced the solution: AIRBNB

SLIDE 5

With this example we focus on words like problem solving or solution

So we need to define the premise of innovation

FIRST: innovating it's a verb it's an activity of solving complex problems in creative
ways.
When someone says we need to be innovative what they're saying is we need to solve
this complex problem in creative ways. Now two key words here.

Complex means that there's many many parts of this problem. It's not easy to
understand.

There is no existing solutions we have to create one.

A key point is you cannot predict the answer to the problem.

So there is a problem and eventually we're gonna solve that problem with the solution
and that is an innovation.

SLIDE 6

INNOVATION IS A VALUABLE NEW SOLUTION.

It's a solution because it gives people what they want.

It's not some airy fairy idea it's not a nice thing.

It's actually gives you what you want solves your problem.

Secondly it's new it's novel to the market.

It's not something you've seen before.

And finally and perhaps most importantly people will pay for an innovation.

Innovation is about being commercial.

So they're either gonna pay you cash or as we see more in today's innovation age they
pay with attention and time.

SLIDE 7

Now why is innovation so important for companies because

1. innovation is the way in which you grow.

2. you get to bust your competitions
3. Innovation is how you unleash Rockstar results and.

his is why we innovate.

To give you an example Google's share price has grown by 160 percent of the last five
years and that has been achieved because it has been so innovative.

Now there's a company that has beaten Google by almost double more than double
actually 400 percent.

And that company is Domino's Pizza.

How can a pizza maker beat the world's most successful technology titan through
innovation.

In other words Domino's has innovated so aggressively in the pizza making space

1. the way in which it serves its customers

2. the way in which it makes pizzas
3. the way which sells pizzas that it has unleashed

whole new revenue streams and has been super super successful.

Now the reason why I use this example is to understand that innovation is not just about
being a Google or a Facebook.

It is about using technology and then any company can innovate.

Any company can do it and if Domino's Pizza can innovate pizza then you can innovate
in your area.

SLIDE 8

So what does a successful innovation look like.

There are three key things that define a successful innovation.

1. One the successful innovation persuades the customer to switch from their
existing preference to the new innovation. For example iPhone persuaded
customers to switch from their BlackBerry to the iPhone or from their Nokia to
the iPhone. That means making the customer leave what he already know and try
something new.
2. Step two once customer switched making him actually stay with the innovation
and this is one of the reasons why Apple is so successful. Because once you start
using an iPhone you start loving it and you're never going to go back again. You
stay with Apple and
3. Then step three is that you evangelize your innovation in other words you share
with your peers and say look at how awesome this is. And that's what spreads
the innovation and allows it to grow so quickly.

SLIDE 9 Disruptive Innovation : Stephen Elop, Nokia’s CEO in his speech when Nokia got
acquired by Microsoft

now what is disruptive innovation disruptive innovation is basically doing those three
things of getting customers to switch and stay with you and spread but doing it really
quickly and a really superior way.

So disruptive innovation is disruptive, because overnight it makes something irrelevant

overnight.
A competitor or a whole new company you've never heard of can surprisingly launch a
new innovation that is vastly superior to and the customers will suddenly leave and
they're never going to come back and you have no way of trying to beat this random
new upstart. And so that's what's so scary about disruptive innovation.

Now let's think about why didn't Nokia try and fight back because Nokia was focused on
solving the wrong problem in the wrong way.

They thought you wanted a phone and so Nokia was focused on building a metaphor.

Longer battery life physical keyboard.

Very resilient.

But people don't want a phone.

They want a digital lifestyle.

You touch your phone maybe 100 200 times a day but maybe only five or 10 of those
are to make calls the rest the time your sending WhatsApp messages you are stuck
checking your share prices you're watching videos on YouTube.

SLIDE 10

The point is that you're living a digital lifestyle and Apple realized that and built a device
for you.

And so that's why you left the old companies and embrace the Apple or Samsung more
Android the Android system today.

So Why are the traditional companies dying: Traditional companies are stuck solving the
wrong problem in the wrong way.And that is why they are dying or dead.

So what you need to do is start creating new solutions to new problems innovating.

And if you do that you have a very good chance of growing.

So in summary what we've covered is that disruptive innovation is transforming every

industry.

The traditional companies markets and value networks are being changed by disruptors
who are creating surprising new innovations that are very quickly spreading.

The problem for companies is that they are stuck solving the wrong problem in the
wrong way and they are serving fewer and fewer customers.

If you want to remain relevant if you want to survive and thrive you must offer new
solutions to the customer's new desires.

Now what happens is that people can be afraid of this change and that's understandable
because change is scary especially big change and the way we overcome that fear is true
passion and excitement.
In other words we should not be afraid of the change. We should be excited by the
progress and improvements that we can create the opportunity to create more growth

to cut costs to increase productivity.

That's on the corporate side but beyond that innovation is really about making the world
a better place.

And that's not an abstract idea is to recognize things like Google Search recognizing that
airplanes recognize things like hospitals.

These are all innovations that we created to make things better.

And so when you're on the journey to be innovative you're ultimately about building
solutions better realities for the people that you care about.

That's what innovation is all about making progress.

So don't be afraid of change. Be excited by it and let's get started on this journey to
discover how we can make it.