A Brief Look at Markets Ready for Disruption #2
In my last post "A Brief Look at Markets Ready for Disruption", I hardly scratched the surface when attempting to seek out existing industries that could be knocked off balance through Disruptive Innovation. The post ended up focusing more on what is Disruptive Innovation, an example of one group's search for some insight, and a scenario of how to apply disruption and innovation to existing industries shown.
This post is more of an attempt to suggest ways to discover more opportunities and insights on existing industries by trying to define the model approach to disruption in conjunction with "sector-based entrepreneurs "
First, checkout this framework for Disruption:
This framework was based off of the disruptive innovation theory to help understand disruption and its different layers. This framework not only could be used to analyze changes made in the past but also, applied to the technology or innovation presently being developed. OK but how?
"This framework is divided into six layers. From the ground to the top, it includes theory, technology, value generation model, industry architecture, consumer behavior and institutions. Those layers are corresponding with six different agents: scientific communities, research and development (R&D) units, firms, industries, consumers and society/authorities. The measurement standards are publications, patents, product distribution, mergers and acquisitions, capital and time use, and finally new laws and regulations."
Pages 32 and 33 of the source (linked below the graph) give a comprehensive explanation of each of the six layers - good stuff.
So we have a framework that can be applied to perform analysis on disruption to help us see the past's outcomes and how they could predict the future's - but what are the factors you need to know in order to find the objects of analysis? Enter table 2
This is where that really fun term: "sector-based entrepreneurs " comes into play. The reason I chose this theory is because I think it really helps you generate the questions necessary to find the Achilles heel of an industry (which is necessary to knock it off balance with a swift application of disruptive innovation). Also, the best answers are usually preceded by the best questions (u can quote my philosophical azz on dat!). The sources goes on to show some more really powerful tables like these ones:
However, I'd say these tables still don't necessarily help you find which industries to look at. This part of the equation seems to be the most difficult part. Data analytic driven insights, by industry, are really hard to come by in my opinion - especially free ones - especially quality free ones. Which leads me to a conclusion that I feel is better explained the Sector-Based-Entrepreneur article:
"...existing definitions of industry may be obsolete or not sufficiently adequate to
deal with the increasing fluidity of sectors. Take, for example, the tech industry in Silicon
Valley where worker mobility gives the tech industry high fluidity"
i.e You can't use this fancy framework or "entrepreneurship by sector" approach without identifying the object of your questioning - but you can't identify because it is ever changing by definition! Not only that, but the method of applying data analysis for insights on industries is highly subjective. Take a look back at the other "Markets Ready for Disruption" post - McKinsley chose a data analysis to produce a view of industries, ready for disruption, through the lens of: "lack of digitization". Why did they choose that out of the endless pool of potential "lack of's"? probably because digitize is a buzzword to their typical customer market...but that's none of my business.
To avoid too much wild speculative opinions, I am going to sum up with a link to Wikipedia's list of Industries to allow you to browse through it, and maybe pick a few Industries to practice on (using the Disruption Framework and Sector-Entrepreneurial approach.)
Let me know what you find :)
Sincerely,
MBMJeremy
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