Disrupt Your Industry

In the world of enterprise technology, one name towers above the rest – a mammoth. It’s a company whose hands are in so many profitable pies, it’s easy to wonder how it keeps up. Its product have changed the way we live, learn and interact. It has opened up tremendous opportunities for information distribution and sales.

Despite amassing huge wealth, the company’s motto remains “Don’t Be Evil.” That company is Google, a disruptive organisation.

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Disruptive companies are the rave. They radically upturn existing ways of doing things. They look at business models and ask “Why are things done this way”? They say, “We’re going to do things differently and create new paradigms”.

Disruptive companies rip the corporate rule book to shreds, rewriting a whole new book.

According to Clayton M. Christensen who coined the term disruptive technologies, a disruptive innovation helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market.

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How low-end disruption occurs over time.

In contrast to disruptive innovation, a sustaining innovation does not create new markets or value networks but rather only evolves existing ones with better value, allowing the firms within to compete against each other’s sustaining improvements.

There are three lessons we can glean from Google’s disruption and apply to any industry or market. They are:

  1. Create a new market or ecosystem

Google created a profitable business from search and online advertising, deepening the industry and pioneering a new monetization model for “eyeballs” and “click throughs”.

The lesson here is that while product originality matters, the creation of a monetization model that actually works is what qualifies you as a disruptive innovator.

  1. Scale up to own the product pipeline

Google’s successful product offerings include but are not limited to:

  • Gmail
  • Google Drive
  • Google Docs
  • Google Maps
  • Google Now
  • Android [acquired in 2005]

Each product interacts with the other and the idea is to own the customer so completely that it would be disruptive (see what we did there…) to go elsewhere. So as you use Gmail, it makes sense to attach heavy files with Google Drive. You also use an Android phone so your Gmail syncs seamlessly.

Apple employs the same methodology with its “i-ecosystem” – you can seamlessly buy music on iTunes and sync with your iPod. You can even buy that iPod with Apple Pay.

While other companies may have their own versions of some of Google’s products, the inventiveness and originality of thought that goes into providing an interrelated pipeline of products which create a market system is the hallmark of a disruptive company.

Take Google Now for instance. Google Now is one of the more ambitious evolutions of Google’s search software. The idea is simple — it predicts what you need to know before you do based on your habits, stored information and search history. It will show you upcoming appointments or tell you when you need to leave to get home on time.

It will give you a preview of your route, with one-button navigation. It will also show upcoming birthdays and anniversaries. Or, it can display weather information for upcoming travel destinations. A bit creepy…yes. And that’s just the beginning. Using its advantage in search and its rich store of consumer data, Google is set to create new markets in data mining and predictive sales.

  1. Drill down to develop promising new markets

Although Google is known for big bets, it also has incredible depth and coverage in niche areas. For example, the company created an interface for Cherokee speakers (a language of about 20,000 people). In doing so, it is poised to become a preferred service provider in that market.

If Google’s tremendous success over the years is anything to go by, disruptive innovation is definitely the way to go for organisations that wish to make big plays into new markets and industries.

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Alder Strategy |The Four Drives of Marketing: Sleep, Thirst, Hunger and Sex

In the life cycle of every business, there exists a tipping point. Whether there’s an element of luck in getting there or a deliberate attempt to make it happen, surely there is a ‘science’ to building a successful business.

This science is predicted on four drives – sleep, thirst, hunger and sex. As plain as they might seem, the drives provoke a primal need in customers to patronise a business and purchase its products and services. They also determine whether customers have an emotional or functional attachment to brands and businesses.

THE FOUR DRIVES

table of drives

Brands that sell sleep and thirst are functional in their approach while emotional brands sell hunger and sex.

In its progressed form, sleep signifies peace, equilibrium, stability and predictability in a business or product. For example, Marriott is reputed for world class hospitality & service. It is not only a place to get a good night’s sleep, but also provides peace of mind and predictable standards across the world. Global discount supermarket chain, Walmart provides consumers with stability and assurance of everyday low prices.

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Marriott

Another drive is thirst. Thirst’s progressions include refreshment, intellect, pursuit of knowledge and innovation. A functional brand known for its delivery of thirst in its primary form is the beverage giant, Coca-Cola. For Google, thirst takes on a deeper meaning. The company constantly searches new ways to innovate while making the world’s information universally accessible and useful to consumers.

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In its primary state, food literally comes to mind when you think of hunger. An example of an organisation that sells food is McDonalds, the world’s largest hamburger fast food chain. Progressed dimensions of food are drive, energy, progress and ambition. A functional brand that delivers on hunger is American athletic shoe and apparel company, Nike. Its slogan encourages you to “Just do it”.

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The last of the four drives is sex. Though sex in its primary form is obvious, its progressions include passion, excitement, pleasure, joy, newness and sex appeal. A brand that is primarily associated with sex is Playboy. Virgin takes things a step further by associating its brand with newness, excitement, fun, cheekiness and an element of risqué marketing.

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The interesting thing about the four drives is the scope they portend for an organisation’s marketing.

Focusing on the deeper dimensions of the four drives creates product distinction and marketing appeal. It also provides breadth for innovative and intriguing messaging.

How can the four drives influence your marketing today?  What are you really selling?

Alder Strategy is a blog on brand strategy for businesses and brand practitioners.

Copyright Alder Consulting 2013. All Rights Reserved.