5 keys to designing a disruptive business
Date: August 31, 2016
Name: Red Academy – 5 keys to designing a disruptive business
Presenters: Brittany Hobbs, and Arpy Dragffy
New innovations can disrupt current business for entrepreneurs. Therefore, successful entrepreneurs will adapt the change and become the next transformative industry leaders. Red Academy invites Brittany Hobbs, the Director of Research and Branding for PH1 Media, and Arpy Dragffy, the Customer Experience Strategist for PH1 Media, to discuss the strategies to prepare the effect of disrupt and leverage the industry opportunities. Entrepreneurs will learn the methods to help their business move towards innovative society. Moreover, disruption is changing all sectors and both presenters will share their insight to help entrepreneurs overcome the fear of disruption.
In this world, many companies are overwhelmed with disruption. Many successful companies find their ways to use disruption as advantage. When they succeed, others follow and they become the game changer of their industry. For example, Airbnb opened up the new meaning of travel in people. Moreover, Uber defines the new meaning of how people use asset of what they own.
In fact, there are many entrepreneurs who have disruptive mindset. They change how people traditionally do things.
The world is being disruptive. The change is small, but the impact many at the same way. The first cause of disruption is the world growth is declining. By looking at the GDP growth trend, the world is not growing as fast as it used to be. The second cause of disruption is the declining population. The world is facing the problem of reducing global economic growth. The third cause of disruption is the declining productivity. The world is now seeing the max capacity of current technology. Both Brittany Hobbs and Arpy Dragffy believe it is time for entrepreneurs to break something to create something else.
“The report from the McKinsey Global Institute says that to compensate for the drop in the growth of the labor force, productivity needs to accelerate 80% from its historical rate to keep global GDP from slowing”
Many entrepreneurs believe the word disruptive is a way to take out of competition. However, there is always consequences. Hobbs and Dragffy believe innovators who create products at “hackathons” are not even trying to disrupt entrepreneurs’ business. In fact, entrepreneurs’ business are just the collateral damange.
Hobbs and Dragffy share the 5 keys to designing a disruptive business.
Key #1: Challenge yourself to think different
Entrepreneurs need to think different in order to revolutionize the current market. Hobbs explains the 3D printing technology was already in the market in 1992. Furthermore, entrepreneurs turn the innovative idea around and create opportunity. Now it is possible to produce organs to help patients.
Dragffy believes disruption relies on the ability to redefine the problem. Design thinking is an exceptional way to see new opportunities.
Key #2: Create experience, not product
Traditionally, people see Sony and Yahoo as top innovative companies. Now, things are different. people are referring Apple and Facebook as the leader of innovation. The difference is all about create experience.
Hobbs explains Snapchat is a new innovative way to interact with people. Labster is a company that teach people to interact in a lab. Based on statistic, the effect on Labster for students is 76% better than the traditional teaching. Moreover, when they combine both together, it raised up more than 101%.
Dragffy believes disruptive business excite the senses and help expand what entrepreneurs believe are possible. With the improvement of customer experience, entrepreneurs will abe able to capture more than ever before about their customers.
Key #3: Do not jump at low-hanging fruit
It is important for entrepreneurs to find something unique that can embrace them. They need to create the type of community they want to be in. Therefore, change the perspective the way they look at their business direction.
Hobbs shares 3 unique markets that no one would have expected. The first market is GoPro. GoPro creates extreme sports photography trend. The second market is Sketch3. It defines the new world for user interface. The last market is Car2Go. It is the most urban way to own a vehicle.
Another example is Bitcoin. Instead of requiring 3rd party intermediaries, which generate high processing fees, entrepreneurs are able to do direct payments. The theory behind Bitcoin is like a block chain of DNA, which creates unlimited innovative potential.
Dragffy believes disruptive business find uniqueness in the market which others neglected. Currently there is trend on design for disabilities.
Key #4: Master new technologies before others do
The primary goal for technology is to create ways for info to be pulled or give.
Hobbs believes MagicLeap is a great example. MagicLeap creates the term “Mix Reality” by having virtualization through reality. They learn mistakes from other companies and implement on the existing technology. They create dynamic simulation where they can interact with different materials.
Hobbs empathizes entrepreneurs should not re-invent existing technology because they are already out there waiting for them to implement.
Dragffy believes disruptive business rarely are the inventors. They only create addiction. The future of interface design relies on user experience. User experience must exceed the cookie-cutter box of designing app.
Key #5: Fail better than everyone else
Elon Musk, the CEO of Tesla, failed 4 times to bring the rocket back to earth, but he made it. The Indian Space Research Organization researched all fail companies for success and now they are now able to test fire scramjet engine. China is no longer a nation of tech copycats because they learn mistakes from other companies that fail.
What is going to happen to the future of Silicon Valley? It is hard to say.
“Great, now I cannot use the ‘that autonomous mode is impossible’ excuse anymore”
Dragffy believes disruptive business look at failure as the reason for success. Everything is surrounded by the concept of ideation, revision and accepting what is not working. Entrepreneurs are suggested to adept the core concept of design thinking.
Question and answers
Hobbs and Dragffy wants entrepreneurs to think about this statement.
“Study where you going? No, study why you are going”
Expertize is no longer comes from one source. Companies these days are either lack of people, lack of vision, or lack of intention. It is entrepreneur’s responsibilities to prepare. Entrepreneurs should aim to change people’s behaviors due to the shift of the successful technology. It used to be the domain of science, but now it is domain of everyone.