dealing with darwin by geoffrey moore
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Dealing with Darwinby Geoffrey Moore
http://www.dealingwithdarwin.com/ http://www.youtube.com/watch?v=vh8dwbi6yRM
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Innovation StrategyRemember Your Vector Math!
= 0Multiple innovation initiatives
Bubble-up management
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Core & Context
ContextCore
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Underlying Drivers in Growth Markets Technology Adoption
Strategies
Techies:Just try it!
Pragmatists:Stick with the herd!
Conservatives:Stick with what’s proven!
Skeptics:Just say No!
Visionaries:Get ahead of the herd!
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Technology Adoption Life Cycle
Chasm
EarlyMarket
Bowling Alley
Tornado
Main Street
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Time
Mar
ket G
row
th
Technology AdoptionLife Cycle
GrowthMarket Mature
MarketDeclining
Market
Indefinitely elasticmiddle period
End of Life
A
FaultLine!
E
DC
B
The Category Maturity Life Cycle
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
AE
DC
B
Cisco Systems andThe Category Maturity Life Cycle
Non-Internet Protocol Support• SNA• ATM Frame Relay• Novell Netware• Etc.
Internet Routers• Core• Edge• AccessInternet Switches• Modular• Stackable
AdvancedTechnologies• VOIP• Security• Wireless• SAN switchesHome Networking• Wireless networks• VOIP adapters
Sector Futures• Data Center Virtualization• Service Provider Triple Play• The Networked Home
Problem Children• Optical network equipment• Service Provider access
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Volume Operations Model
Consumers
Consumers
Consumers
Consumers
Consumers
Consumers
Consumers
ConsumersDistributionChannel
SharedInfrastructure
Offer Offer
Offer
Offer
OfferOffer
Offer
Offer
Technology
Brand Advertising
Promotions
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Cyclicality & Strategy
C1 V1
Volume operations commoditize categories created by complex systems
ComplexSystems
Volume Operations
Complex systems respond by creating the next level of complexity
C2 C3V2 V3
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
DisruptiveInnovation
ApplicationInnovation
ProductInnovation
PlatformInnovation
EnhancementInnovation
IntegrationInnovation
ExperientialInnovation
ProcessInnovation
MarketingInnovation
A Broad Universe of Innovation Types
Value MigrationInnovation
Line ExtensionInnovation
Value EngineeringInnovation
Harvest& Exit
Renewal Innovation
OrganicRenewal
AcquisitionRenewal
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Four Innovation Zones
DisruptiveInnovation
ApplicationInnovation
ProductInnovation
PlatformInnovation
EnhancementInnovation
IntegrationInnovation
ExperientialInnovation
ProcessInnovation
MarketingInnovation
Business ModelInnovation
Line ExtensionInnovation
Value EngineeringInnovation
Harvest& Exit
Renewal Innovation
ProductLeadership
Zone
OperationalExcellence
Zone
CustomerIntimacy
ZoneCategoryRenewal
Zone
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
DisruptiveInnovation
ApplicationInnovation
ProductInnovation
PlatformInnovation
Innovation Types for Growth Markets
The Product Leadership Zone
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Innovation Types for Growth Markets
ProductNew Existing
Market
New
Existing
DisruptiveInnovation
ProductInnovation
ApplicationInnovation
PlatformInnovation
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
ExperientialInnovation
MarketingInnovation
Innovation Types for Mature Markets
The Customer Intimacy Zone
Customer Intimacy Zone
EnhancementInnovation
Line ExtensionInnovation
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Innovation Types for Mature Markets
The Operational Excellence Zone
IntegrationInnovation
ProcessInnovation
Value MigrationInnovation
Value EngineeringInnovation
Operational Excellence Zone
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Innovation Types for Declining Markets
Leveraging Category Renewal
Harvest& Exit
Category Renewal
Organic
Acquisition
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Core Becomes Context Over TimeThe End of Core is Commoditization
Subsidized cell phones
SMS messaging
Fashionable accessories
Color screens
Camera functionalityCor
e
Longer battery life
Video games & downloadsCon
text
Cellular Telephony Example
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
ContextCore
Context Build-up
CoreContext
Start-up EstablishedEnterprise
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Two Birds, One Stone
Extract resources from context to repurpose for core
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Core/Context Analysis Framework
CoreProcess creates
differentiation that wins customers
ContextAll other
processes
Mission CriticalProcess shortfall creates
serious and immediate risk
Non-Mission-CriticalAll other processes
Differentiation
Ris
k
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
The Cycle of Innovation
Deploy
Invent Offload
Core Context
Mission Critical
Non-Mission-Critical
Manage
ManageMission-critical
ProcessesAt Scale
ExtractResources
To RepurposeFor Core
InventDifferentiated
Offering
DeployDifferentiation
At Scale
Fund next innovation
IV
IIIII
I
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Mission Critical
Non-Mission-Critical
Clinging to Context How Resources Get Stuck
Resourcesget stuck
here
Resources areadded here for
supportResources
still getinvested here
But lack ofresources here
results in failure to deploy!
Mission-
critical risk
Core Context
IV
IIIII
I
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Core Context
The Five Levers ModelExtracting Resources from Mission-Critical
Context1. Centralize. Bring operations under a single authority
to reduce overhead costs and create a single decision-making authority to manage risk
2. Standardize. Reduce the variety and variability of processes delivering similar outputs to further reduce costs and minimize risks.
3. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions.
4. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost resources, and instrument the process for monitoring and control.
5. Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate monitoring systems into Service Level Agreement
Requires specializedsupport
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
The Problem with OutsourcingWhat Happens to the Work Force?
Resources Available
Here
ResourcesWanted
Here
Core Context
MissionCritical
Enabling
People being released lack the skillsto fill the positions being opened
IV
IIIII
I
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Resource Recycling
AC
B
Work circulates clockwisePeople recycle counter-clockwise
IV
IIIII
I
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Resource-Recycling Zones
IV
IIIII
I
Inve
ntio
nZo
ne
DeploymentZone
Optim
izationZone
Handoff# 1
Handoff# 2
Entrepreneurs Think outside the box to create
new core
Program managers Think inside the box to deploy
processes at scale
Process optimizers Think inside and outside the box
to extract resources
Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”
Resource Recycling Meets Outsourcing
Zone rotations drive perpetual innovation
1
2
3
4
5
6
7
IV
IIIII
I
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