dealing with darwin by geoffrey moore 8dwbi6yrm

Dealing with Darwinby Geoffrey Moore

http://www.dealingwithdarwin.com/ http://www.youtube.com/watch?v=vh8dwbi6yRM

http://www.dealingwithdarwin.com/

http://www.youtube.com/watch?v=vh8dwbi6yRM

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


Core & Context

ContextCore


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!


Technology Adoption Life Cycle

Chasm

EarlyMarket

Bowling Alley

Tornado

Main Street


Time

Mar

ket

Gro

wth

Technology AdoptionLife Cycle

GrowthMarket Mature

MarketDeclining

Market

Indefinitely elasticmiddle period

End of Life

A

FaultLine!

E

DC

B

The Category Maturity Life Cycle


AE

D

C

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


Volume Operations Model

Consumers

Consumers

Consumers

Consumers

Consumers

Consumers

Consumers

ConsumersDistributionChannel

SharedInfrastructure

Offer Offer

Offer

Offer

OfferOffer

Offer

Offer

Technology

Brand Advertising

Promotions


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


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


Four Innovation Zones



ProductInnovation

PlatformInnovation




ProcessInnovation

MarketingInnovation

Business ModelInnovation



Harvest& Exit

Renewal Innovation

ProductLeadership

Zone

OperationalExcellence

Zone

CustomerIntimacy

Zone

CategoryRenewal

Zone




ProductInnovation

PlatformInnovation

Innovation Types for Growth Markets

The Product Leadership Zone


Innovation Types for Growth Markets

ProductNew Existing

Market

New

Existing


ProductInnovation


PlatformInnovation



MarketingInnovation

Innovation Types for Mature Markets

The Customer Intimacy Zone

Customer Intimacy Zone




Innovation Types for Mature Markets

The Operational Excellence Zone


ProcessInnovation

Value MigrationInnovation


Operational Excellence Zone


Innovation Types for Declining Markets

Leveraging Category Renewal

Harvest& Exit

Category Renewal

Organic

Acquisition


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


ContextCore

Context Build-up

CoreContext

Start-upEstablishedEnterprise


Two Birds, One Stone

Extract resources from context to repurpose for core


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


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


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


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


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


Resource Recycling

AC

B

Work circulates clockwise

People recycle counter-clockwise

IV

IIIII

I


Resource-Recycling Zones

IV

IIIII

I

Inve

nti

on

Zo

ne

DeploymentZone

Op

timizatio

nZ

on

e

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


Resource Recycling Meets Outsourcing

Zone rotations drive perpetual innovation

1

2

3

4

5

6

7

IV

IIIII

I

dealing with darwin by geoffrey moore 8dwbi6yrm

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