Thales Teixeira Introduces "Decoupling" as the Customer-centric Approach to Digital Disruption

00:52:33
https://www.youtube.com/watch?v=wetBJoz2HbM

摘要

TLDRThe speaker shares insights into the nature of business disruption, using personal experiences from startups like Facebook and Netflix. Originally studying the economics of attention, they describe the disruptive processes as not just technology-driven but heavily reliant on business model innovation. The core idea is the 'customer value chain'—a sequence of value-creating, value-eroding, and value-capturing activities. Disruptors identify and improve specific activities, known as decoupling, separating them from full value chain control. Examples include Birchbox and Amazon's showrooming. Disruption waves have moved from unbundling media to disintermediation and now decoupling. Successful startups target specific customer activities, reducing cost, time, and effort, thus gaining a competitive edge over established players. Big corporations can respond by re-coupling or rebalancing their strategies to adapt. Ultimately, it's about improving customer-centric processes to disrupt markets, where successful disruptors capture previously leaked value from incumbents.

心得

  • 🌧️ Staying out in the rain is less appealing than learning about disruption.
  • 🚀 Visiting startups like Facebook and Netflix sparked the journey into understanding disruption.
  • 🔗 Disruption isn't just technology—it's about decoupling customer activities.
  • 🎯 Focus on improving one customer activity to gain a competitive edge.
  • 🏢 Big companies must adapt by re-coupling and rebalancing their strategies.
  • 📈 Three disruption waves: unbundling, disintermediation, and decoupling.
  • 🧩 Identify customer value, cost, and effort to create disruption.
  • 🛠️ Successful disruptors specialize in customer value chain activities.
  • 📊 Disruptors are valued based on the innovation type—creating, eroding, or charging value.
  • 📚 Recipe for disruption: Map, identify, find weak links, reduce costs, anticipate responses.

时间轴

  • 00:00:00 - 00:05:00

    The speaker thanks the audience and sets the context by discussing his journey in learning about disruption over the past seven years, starting with visits to prominent startups like Facebook and Netflix. He learned that many companies, despite creating groundbreaking technologies, failed to survive due to not understanding the patterns of disruption.

  • 00:05:00 - 00:10:00

    The speaker explains digital disruption, which involves substantial shifts in market share due to new players entering the market. He identified that disruptions occur in waves with distinct characteristics, such as unbundling, disintermediation, and the latest wave, decoupling, where startups focus on one activity within the customer value chain and improve it significantly.

  • 00:10:00 - 00:15:00

    Decoupling involves startups enhancing one activity in the consumer value chain, like evaluation or purchase, without handling the entire chain. Examples like Birchbox and Amazon demonstrate how focusing on evaluation or purchase can lead to significant industry changes, such as showrooming or subscription models.

  • 00:15:00 - 00:20:00

    The speaker explains how decoupling plays out across various industries, highlighting companies like Turo and Zipcar in the automotive sector, which offer alternatives for car usage without the burden of ownership or maintenance. These innovations disrupt by rethinking the traditional value chain through digital solutions.

  • 00:20:00 - 00:25:00

    The concept of decoupling is further elaborated with examples from the media and insurance industries, illustrating how startups like Aereo and Trove simplify or eliminate cumbersome activities. The speaker emphasizes the importance of focusing on customer activities that are either value-creating or value-eroding, and how startups can capitalize on these distinctions.

  • 00:25:00 - 00:30:00

    There are three types of decoupling—value creating, value eroding, and value charging. The speaker outlines how each type can lead to successful startups, using examples from companies that have decoupled parts of the customer experience. This strategic focus can determine a startup's potential for large valuations.

  • 00:30:00 - 00:35:00

    Startups can grow significantly by targeting specific customer activities. The speaker advocates for identifying weak links in the customer value chain, enhancing specialization forces, and leveraging these opportunities to build successful business models. The discussion underscores that specialization and reducing costs in time, effort, and money can attract more customers.

  • 00:35:00 - 00:40:00

    The speaker defines a process for crafting business models around decoupling, recommending mapping out customer activities, identifying the type of value in each, finding weak links, and creating advantages by lowering associated costs. He suggests that executing these steps can increase the chances of startup success.

  • 00:40:00 - 00:45:00

    The speaker advises on how established incumbents can respond to disruptions by either re-coupling activities that have been decoupled by startups or by decoupling themselves to adapt to new market dynamics. Best Buy is highlighted as a case where the company successfully adapted by changing its business model to handle showrooming.

  • 00:45:00 - 00:52:33

    Lastly, the speaker discusses myths about digital disruption and emphasizes that the true drivers are customer needs rather than the startups or technologies themselves. By focusing on customer value chains and business model innovation rather than purely on technology, companies can better navigate the competitive landscape.

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思维导图

Mind Map

常见问题

  • What is the key concept of disruption discussed in the talk?

    The key concept of disruption discussed is decoupling, where startups identify and improve specific customer activities rather than offering all activities, which disrupts incumbents.

  • How did the speaker begin their journey in understanding disruption?

    The speaker began by visiting startups like Facebook, Netflix, and Airbnb, analyzing their approaches to disrupt industries.

  • What is the customer value chain?

    The customer value chain consists of all activities a customer goes through in acquiring goods or services, which can be value-creating, value-eroding, or value-capturing.

  • What are some examples of decoupling mentioned?

    Examples include Birchbox for beauty products, Amazon's showrooming tactic, and Turo for car-sharing, where they focus on improving specific activities.

  • What is the third wave of digital disruption?

    The third wave of digital disruption is characterized by startups decoupling customer activities, focusing on improving specific areas rather than providing the entire value chain.

  • What does decoupling mean in the context of disruption?

    Decoupling refers to separating and improving specific activities in the customer value chain, rather than controlling the entire process, to gain competitive advantage.

  • Why did some companies like Kodak and Nokia fail despite having technologies?

    They failed not due to lack of technology, but because they could not adapt their business models to the changing market and customer needs.

  • How should big companies respond to disruption?

    Big companies can respond by re-coupling, which means they try to integrate the separated activities, or preemptively adapt their business models to live with the changes.

  • What is a practical example of decoupling in the talk?

    A practical example is Trov insurance, allowing users to insure possessions with a simple app swipe, thus separating insurance processes from traditional cumbersome methods.

  • How do companies create disruption according to the speaker?

    Companies create disruption by focusing on customer activities that can be done better, either adding value, removing value-eroding activities, or changing value-capture dynamics.

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  • 00:00:00
    good afternoon thank you for being here
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    I know the alternative is staying out in
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    the rain so maybe the bar is low but I
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    hope that in the next 45 minutes I can
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    show to you a little bit about what I
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    learned in the past six or seven years
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    since visiting the first startup ever
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    visited at Harvard Business School I was
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    doing research on the economics of
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    attention and so a startup that was very
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    critical to the attention medium decided
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    to invite me out this was 2010 actually
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    and so the startup in in Palo Alto
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    invited me to go give a talk and I
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    remember entering their building and
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    there are a lot of people taking
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    pictures I remember seeing the founder
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    CEO this guy called mark he he dropped
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    out of Harvard to open this startup and
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    he was sitting in his flip-flops he was
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    standing up typing in his keyboard and
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    and I gave a talk about the economics of
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    attention but really what I wanted to
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    know about the startup called Facebook
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    was how were they planning to disrupt
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    the social media industry because there
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    were social media websites before they
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    said they were doing it very differently
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    and they were unabashedly saying this is
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    our plan so what we're gonna do and they
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    told me a little bit about it and so I
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    just wrote it down and then a year and a
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    half later I was invited to give a talk
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    at Netflix and after I gave a talk I
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    when I talked to the executives how are
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    you guys planning to disrupt the video
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    streaming industry and they said oh
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    professor we're gonna do it very
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    differently this is what we're planning
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    to do and I just wrote it down and then
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    I visited Airbnb gave a talk asked them
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    how are you planning to disrupt the
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    hospitality industry they said oh we're
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    doing it very different from all the
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    other players this is what we're
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    planning to do and the more I heard were
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    doing it very differently the more I
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    realized they were doing all the same
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    thing they were executing it very
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    differently because they were in
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    different industries but their approach
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    was so common that I started thinking
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    that there was a pattern a process for
  • 00:01:59
    disruption and in half an hour I try to
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    show you a little bit of this process
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    but uh but going back a little bit is
  • 00:02:07
    this idea of really trying to understand
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    what is disruption there was a lot of
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    talk about
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    since startups as well as big companies
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    but once you would look at examples and
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    basically the story has been technology
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    is the disrupter you create a technology
  • 00:02:26
    in your disrupt markets right Apple
  • 00:02:29
    Tesla IBM a way back in the day so many
  • 00:02:33
    new technologies but once you look at
  • 00:02:35
    many examples of companies you find
  • 00:02:38
    something interesting kodak created the
  • 00:02:41
    first digital camera yet it did not
  • 00:02:45
    survive
  • 00:02:46
    Nokia created most of the patents that
  • 00:02:49
    are actually available in the cell
  • 00:02:51
    phones that you guys are using whether
  • 00:02:53
    it be Samsung or Apple Nokia created
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    these patents yeah my scanner created
  • 00:02:58
    the first cat scanner and Sears created
  • 00:03:01
    one of the marvelous new technologies in
  • 00:03:03
    the beginning of the 1900s which was
  • 00:03:06
    called a mail-order catalog for the
  • 00:03:09
    first time ever you could actually buy
  • 00:03:10
    things without going to the store and
  • 00:03:14
    then lastly Xerox as you all know
  • 00:03:15
    created many of the technologies of the
  • 00:03:18
    PC and the network computer yet
  • 00:03:21
    what happened something happened and
  • 00:03:23
    many of them didn't survive Sears is
  • 00:03:26
    going down the drain and Xerox is a
  • 00:03:28
    shadow of its former self
  • 00:03:29
    so really penny on technology as the
  • 00:03:33
    root cause of disruption these companies
  • 00:03:35
    develop the technologies they didn't
  • 00:03:37
    survive so my question is why what
  • 00:03:40
    happened not only these companies did
  • 00:03:44
    not survive but the CEOs that were at
  • 00:03:47
    the helm of these companies at the top
  • 00:03:49
    they don't even know what happened to
  • 00:03:52
    them in the process of falling off the
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    cliff this is this is Stephen Elop he is
  • 00:04:00
    the former CEO of Nokia and there's a
  • 00:04:02
    video on youtube of him t rise saying
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    among other things we didn't do anything
  • 00:04:08
    wrong but somehow we lost even after the
  • 00:04:12
    fact he didn't know how to explain it
  • 00:04:13
    and look at the global market share of
  • 00:04:15
    Nokia in the early 2000s it was 55% of
  • 00:04:21
    all cell phones in the world were Nokia
  • 00:04:24
    phones last year 1.1 percent
  • 00:04:28
    pretty much only if you're in Africa you
  • 00:04:29
    will ever buy a Nokia phone and look at
  • 00:04:32
    how much the fall went fast very very
  • 00:04:35
    fast the fallen market shares what is
  • 00:04:39
    disruption you know as academics we tend
  • 00:04:42
    to say ok if there's a phenomenon we
  • 00:04:44
    want to study we need to really clearly
  • 00:04:46
    define it and this is my definition of
  • 00:04:49
    disruption
  • 00:04:50
    so disruption happens in any company any
  • 00:04:53
    country in any industry when two things
  • 00:04:55
    happen there is a substantial change of
  • 00:04:58
    market shares we're not talking about
  • 00:05:00
    one two three percent point of market
  • 00:05:03
    shares we're talking about 10 20 30 in
  • 00:05:05
    some industries in some countries 40
  • 00:05:08
    percent of market share switched hands
  • 00:05:11
    from what we call incumbents the big
  • 00:05:13
    established companies to these startups
  • 00:05:15
    these disruptors in a short period of
  • 00:05:18
    time less than 10 years sometimes eight
  • 00:05:21
    sometimes seven sometimes five years big
  • 00:05:23
    companies lost dramatic amount of market
  • 00:05:26
    share to so-called disruptors tech
  • 00:05:29
    companies and startups started stealing
  • 00:05:32
    this and really I wanted to understand
  • 00:05:34
    what is causing this how can we
  • 00:05:37
    understand this phenomenon at a broader
  • 00:05:39
    level right initially I thought as
  • 00:05:42
    everything in life as everything
  • 00:05:45
    critical and important in life it
  • 00:05:46
    happens consistently over time every
  • 00:05:51
    year something happens in certain
  • 00:05:53
    markets in certain countries in certain
  • 00:05:56
    industries and big companies start
  • 00:05:58
    losing a little bit of market share and
  • 00:06:00
    then year after year after year this
  • 00:06:02
    pattern continuously habits well when I
  • 00:06:06
    look back to the history of the internet
  • 00:06:07
    what I realized was that there are
  • 00:06:10
    so-called waves of digital disruption
  • 00:06:12
    meaning nothing happens for a few years
  • 00:06:15
    and then suddenly something happens and
  • 00:06:16
    then nothing happens for a few more
  • 00:06:18
    years and then suddenly something
  • 00:06:19
    happens that affects many industries
  • 00:06:21
    right and so when you go back to the
  • 00:06:24
    history of the internet 1994 when the
  • 00:06:26
    internet becomes more popular there was
  • 00:06:28
    this first wave of digital disruption
  • 00:06:30
    and we now call it unbundling it
  • 00:06:33
    affected many companies like media
  • 00:06:35
    content companies advertising movie
  • 00:06:38
    songs everything that could be
  • 00:06:39
    transformed into digital
  • 00:06:41
    the zeros and ones digitize a book was
  • 00:06:44
    being unbundled because you would before
  • 00:06:47
    you would have to buy kind of a bundles
  • 00:06:51
    of products and unbundling was breaking
  • 00:06:54
    down the products breaking down a news
  • 00:06:56
    into bits and pieces and sold in parts
  • 00:06:58
    you don't buy the CD anymore you buy
  • 00:07:00
    song after song in this affected many
  • 00:07:03
    industries the second wave happened
  • 00:07:05
    around 2000 in the second wave we call
  • 00:07:08
    it disintermediation it was slightly
  • 00:07:10
    different from the first wave in which
  • 00:07:12
    it wasn't breaking down a product into
  • 00:07:14
    pieces and sold in parts like now you
  • 00:07:17
    consume one song on one or one book or
  • 00:07:20
    you consume one one episode of a Netflix
  • 00:07:24
    show but it was breaking apart the
  • 00:07:27
    supply chain the companies that source
  • 00:07:30
    and buy products from each other before
  • 00:07:32
    you would go to a travel agency and the
  • 00:07:35
    travel agency would get you the airfare
  • 00:07:38
    the hotel the activities now most of us
  • 00:07:41
    go directly to the providers
  • 00:07:43
    disintermediating the travel agent in
  • 00:07:45
    the year 2000 procurement services
  • 00:07:48
    financial services in the industries
  • 00:07:50
    there was disintermediation in the sense
  • 00:07:53
    that these suppliers went directly to
  • 00:07:55
    the end customers but what I've
  • 00:07:58
    identified in this these last few years
  • 00:08:01
    that there has been a third wave of
  • 00:08:04
    digital disruption that has affected
  • 00:08:06
    many more industries like electronics
  • 00:08:08
    consumer goods transportation than
  • 00:08:10
    business services before I explain to
  • 00:08:13
    you what characterizes its third wave I
  • 00:08:15
    need to explain to you a concept that we
  • 00:08:18
    teach at Harvard Business School pretty
  • 00:08:20
    much in the first week of the MBA
  • 00:08:22
    program and which is called the customer
  • 00:08:24
    value chain and the customer value chain
  • 00:08:28
    at Harvard we use the decision-making
  • 00:08:31
    process but I'll explain to you why I
  • 00:08:32
    call it the customer value chain but
  • 00:08:34
    imagine this you need to go buy a
  • 00:08:36
    flat-screen TV today most likely you're
  • 00:08:38
    going to go to Best Buy
  • 00:08:39
    why because you can evaluate all the
  • 00:08:41
    options of flat-screen TVs then you can
  • 00:08:44
    choose the option that you want 50 inch
  • 00:08:47
    Samsung then you go pay for it you take
  • 00:08:50
    it home you consume it in a few years
  • 00:08:52
    you dispose of it throw it away
  • 00:08:55
    or resell it or something else right so
  • 00:08:57
    this is the value change for me as the
  • 00:08:59
    customer of a flat-screen TV and Best
  • 00:09:03
    Buy the incumbents in electronics does
  • 00:09:05
    all this on my behalf it fulfills these
  • 00:09:07
    activities for me if I were to buy
  • 00:09:09
    beauty products I can go to Sephora and
  • 00:09:12
    evaluate choose purchase consume and
  • 00:09:14
    dispose of beauty products as well and
  • 00:09:16
    if I wanted to consume video games
  • 00:09:17
    Electronic Arts is the incumbent I can
  • 00:09:20
    do all these with Electronic Arts this
  • 00:09:23
    third wave of digital disruption is
  • 00:09:25
    characterized by startups looking at
  • 00:09:27
    this customer value chain and
  • 00:09:30
    identifying one activity that they say I
  • 00:09:33
    think I can do this activity better for
  • 00:09:36
    the customer for example in 2010 a
  • 00:09:39
    start-up out of Harvard called Birchbox
  • 00:09:43
    asked the question why do women men as
  • 00:09:47
    well but mostly women need to go to the
  • 00:09:49
    Sephora store to sample beauty products
  • 00:09:51
    obviously you need to sample because
  • 00:09:53
    what is good in my skin or my hair might
  • 00:09:55
    be differently from what's good for you
  • 00:09:57
    so simply is important but why do we
  • 00:09:59
    need to go to the store they decided to
  • 00:10:01
    put samples of beauty products in a box
  • 00:10:03
    it shipped it to people's houses for $10
  • 00:10:05
    a month in a sense they decoupled they
  • 00:10:08
    broke apart the customer value chain and
  • 00:10:11
    offered only the evaluation piece they
  • 00:10:13
    said sample with us once you get it from
  • 00:10:15
    home and you realize what you like in
  • 00:10:17
    your skin you want to buy the full-size
  • 00:10:18
    item you can go buy two at Sephora or
  • 00:10:21
    buy at Amazon right they didn't do
  • 00:10:24
    everything in the value chain when
  • 00:10:26
    Amazon switched from books into going
  • 00:10:30
    into new markets they chose electronics
  • 00:10:32
    but they knew people needed to try
  • 00:10:34
    electronics product test it out right
  • 00:10:37
    see the sound the image and so what they
  • 00:10:39
    did is they created an app that allowed
  • 00:10:41
    you to go to the Best Buy store evaluate
  • 00:10:45
    and choose the TV that you want but then
  • 00:10:47
    then pull out your phone take a picture
  • 00:10:49
    of the product or scan the barcode or
  • 00:10:51
    plug in the information and see if
  • 00:10:53
    Amazon has a cheaper price online and
  • 00:10:55
    you can potentially buy it if so right
  • 00:10:57
    there on the spot what we call
  • 00:10:58
    showrooming today right so Amazon let
  • 00:11:02
    Best Buy take care of evaluation and
  • 00:11:04
    choosey but said we want you to purchase
  • 00:11:06
    with us
  • 00:11:07
    and then lastly Zynga was a
  • 00:11:09
    company now it's so common with Zynga
  • 00:11:11
    was the first company to say why do
  • 00:11:12
    people need to buy the videogame before
  • 00:11:15
    they play it what if they don't like it
  • 00:11:16
    what if they don't want to keep playing
  • 00:11:18
    it and so they created the premium types
  • 00:11:20
    of video games so this is the third way
  • 00:11:23
    decoupling is the breaking of the links
  • 00:11:26
    between the customer activities often by
  • 00:11:28
    a digital player that have been
  • 00:11:29
    traditionally provided together the
  • 00:11:31
    incumbent company provides all those
  • 00:11:32
    activities a startup says we're going to
  • 00:11:35
    do this activity better let me give you
  • 00:11:38
    a few more examples this is not really
  • 00:11:40
    this new right even in the year 2000 if
  • 00:11:44
    we remember in the year 2000 a new
  • 00:11:49
    technology came out but it was very very
  • 00:11:51
    similar to what was available before it
  • 00:11:53
    was a startup that said well what is the
  • 00:11:56
    value chain of people watching TV they
  • 00:11:59
    want to watch the shows in the process
  • 00:12:01
    they have to watch the ads and so TiVo
  • 00:12:03
    came in and said look why don't you buy
  • 00:12:05
    our DVR recorder and now you can watch
  • 00:12:08
    the shows and fast-forward through the
  • 00:12:10
    ads decoupling these activities and in
  • 00:12:12
    2015
  • 00:12:13
    Aereo came out and saying you don't even
  • 00:12:15
    need to buy a DVR you can just go online
  • 00:12:17
    sign up with us tell us what shows you
  • 00:12:21
    like what channels you like we'll record
  • 00:12:23
    them for you and will automatically take
  • 00:12:25
    out these ads and will stream it to
  • 00:12:27
    wherever you are are you at home at work
  • 00:12:29
    traveling in a hotel you can stream the
  • 00:12:31
    shows without the ads decoupling these
  • 00:12:34
    activities in the insurance industry you
  • 00:12:39
    know I'm I'm from Brazil as Michael said
  • 00:12:42
    imagine my colleagues telling me Tallis
  • 00:12:44
    I want to go to Brazil I want to go to
  • 00:12:46
    Rio I want to go up the favelas where
  • 00:12:48
    all the poor people live I want to take
  • 00:12:50
    pictures of them I'm gonna take my
  • 00:12:52
    $1,800 camera and start taking pictures
  • 00:12:54
    of them I'm gonna tell the look be
  • 00:12:56
    careful you might not come back with
  • 00:12:58
    your camera all right what you should do
  • 00:13:01
    is you should get some insurance for the
  • 00:13:03
    camera in case that happens so procure
  • 00:13:04
    insurance go through all the insurance
  • 00:13:06
    companies you know ask them for the
  • 00:13:08
    contracts read the contracts compare
  • 00:13:10
    sign up for the insurance pay for the
  • 00:13:12
    premium cancel the insurance after when
  • 00:13:14
    you come back from Brazil because you
  • 00:13:15
    don't need that insurance anymore this
  • 00:13:18
    is so complicated to be done my
  • 00:13:20
    colleagues will probably say you know
  • 00:13:21
    I'd like to
  • 00:13:22
    I'm gonna risk it so a few years ago
  • 00:13:25
    came trove T ROV there's an they have an
  • 00:13:29
    app that you link this app to your email
  • 00:13:33
    account so everything that you buy
  • 00:13:34
    online automatically gets populated in
  • 00:13:37
    the app see MacBook Canon bicycle guitar
  • 00:13:40
    all of these things that I own right and
  • 00:13:42
    so with trove it allows you to in the
  • 00:13:45
    moment that you're sitting down in the
  • 00:13:46
    airplane about to take off for Brazil
  • 00:13:48
    you're only taking your camera you're
  • 00:13:50
    not taking your bike anything else you
  • 00:13:52
    want insurance for your camera what do
  • 00:13:54
    you do to get insurance for that camera
  • 00:13:56
    swipe right you swipe right now you're
  • 00:14:00
    automatically being insured for that
  • 00:14:01
    camera
  • 00:14:02
    it costs a few dollars per day you
  • 00:14:04
    travel to Brazil spent a few a week when
  • 00:14:07
    you come back you're landing you don't
  • 00:14:08
    need the insurance swipe the opposite
  • 00:14:11
    and now you just turned off insurance so
  • 00:14:14
    turning on and off insurance in your app
  • 00:14:15
    just like turning on and off a switch
  • 00:14:17
    just for the products you want trove
  • 00:14:20
    allows you to decouple this process to
  • 00:14:22
    only make sure you get the benefit in
  • 00:14:24
    doing very few of the activities
  • 00:14:26
    necessary in the auto industry why do we
  • 00:14:30
    buy cars we buy cars because we want to
  • 00:14:34
    drive cars in the process of driving
  • 00:14:36
    cars we need to maintain cars change the
  • 00:14:38
    oil change the tires do all sorts of
  • 00:14:41
    unnecessary things that we don't like to
  • 00:14:43
    do but we have to do we're forced to do
  • 00:14:45
    it because we own the car so a start-up
  • 00:14:48
    realized that the average American car
  • 00:14:50
    is utilized meaning it is in motion
  • 00:14:54
    transporting somebody four percent of
  • 00:14:57
    the time 96 percent of the time it is
  • 00:14:59
    park it is not being used for any real
  • 00:15:02
    purpose so they realize that they said
  • 00:15:04
    Toro came up with the idea that the
  • 00:15:07
    world does not need more cars the world
  • 00:15:09
    needs a better efficient allocation of
  • 00:15:12
    crop cars across users and so Toro is a
  • 00:15:15
    platform which if you have a car and
  • 00:15:17
    you're not using your car you can say
  • 00:15:19
    where your car is located what car it is
  • 00:15:21
    and the days of the week or the hours of
  • 00:15:24
    the day that you're not using it and
  • 00:15:25
    people can rent each other's cars I do
  • 00:15:27
    it all the time all right when I want to
  • 00:15:30
    go up the mountain I get in a four-wheel
  • 00:15:32
    drive when I want a convertible for the
  • 00:15:34
    weekend I just rent it
  • 00:15:36
    my neighbor's so decoupling now I can
  • 00:15:38
    drive a car without having to buy or
  • 00:15:40
    maintain the car right
  • 00:15:42
    but Toro works if you're driving for a
  • 00:15:44
    weekend or long distances because you
  • 00:15:46
    have to go get the keys if you want to
  • 00:15:48
    do it in a very short drive a few hours
  • 00:15:50
    go to the grocery stores you'll probably
  • 00:15:52
    use zip car right zip car they have a
  • 00:15:54
    lot of embossed I don't know if they
  • 00:15:56
    have it here in Miami but basically you
  • 00:15:58
    have a little card and you can unlock
  • 00:16:00
    the the open the doors with a little
  • 00:16:04
    card by swiping it close to the the
  • 00:16:07
    mirror of the car now if you don't want
  • 00:16:09
    to drive if you want to be driven
  • 00:16:10
    obviously you bur lift and the Boston
  • 00:16:12
    taxi response to these ride-sharing
  • 00:16:14
    businesses called curb but if you want
  • 00:16:18
    to go from Miami to New York City most
  • 00:16:23
    likely uber driver will not take you
  • 00:16:25
    there and so a few years ago somebody
  • 00:16:28
    from Paris said well there's a spot
  • 00:16:31
    there that we could take and we're gonna
  • 00:16:33
    call ourselves blahblah car and we're
  • 00:16:35
    going to do city to city ride-sharing so
  • 00:16:38
    basically you have to agree the time in
  • 00:16:41
    the day and basically you buy
  • 00:16:43
    essentially a seat in somebody else's
  • 00:16:45
    car going from one city to the other
  • 00:16:47
    right now my students looked at this and
  • 00:16:50
    said there's so many options which one
  • 00:16:52
    will the consumer want to take we don't
  • 00:16:55
    know because you would have to go
  • 00:16:56
    through all these apps and so they
  • 00:16:58
    created urban Hale with the urban halo
  • 00:17:00
    you go to urban Hale and you provide the
  • 00:17:02
    information where you are where you want
  • 00:17:04
    to go just like uber and they will give
  • 00:17:05
    you the prices of all of these apps and
  • 00:17:08
    you can compare it even with taxis right
  • 00:17:10
    so they call themselves the kayak of
  • 00:17:12
    ride-sharing and I use kayak a lot to
  • 00:17:14
    compare prices of Airlines they further
  • 00:17:16
    decoupled the process they help you
  • 00:17:18
    compare the price they don't help you
  • 00:17:20
    order or drive or provide any of the
  • 00:17:22
    service so you can see how decoupling is
  • 00:17:25
    practice choosing an activity saying
  • 00:17:26
    we're gonna do this better not trying to
  • 00:17:28
    do everything for the customer the key
  • 00:17:30
    thing that I learned that these startups
  • 00:17:34
    are doing are this today's most
  • 00:17:37
    dangerous disruptors there are actually
  • 00:17:39
    not stealing customers away Birchbox is
  • 00:17:42
    not stealing completely their customer
  • 00:17:44
    away from sephora people still go to
  • 00:17:46
    Sephora what Birchbox is doing is
  • 00:17:48
    stealing a customer
  • 00:17:49
    activity so this is the big change in
  • 00:17:52
    competition
  • 00:17:53
    stealing customer activities from
  • 00:17:55
    incumbent companies and that is the
  • 00:17:57
    route the basis of why decoupling has
  • 00:18:00
    become so pervasive what startups now as
  • 00:18:04
    I was thinking about this I was looking
  • 00:18:06
    at examples of decoupling in many
  • 00:18:08
    different industries so my natural
  • 00:18:10
    question was how many different types of
  • 00:18:12
    decoupling are there is it just one
  • 00:18:14
    every industry the same format or if I
  • 00:18:17
    look at 50 different industries there'll
  • 00:18:19
    be 50 different types of decoupling I
  • 00:18:21
    don't know if you know this but at the
  • 00:18:23
    Harvard Business School we teach only
  • 00:18:25
    with the case method which means I give
  • 00:18:27
    a case and I ask questions and my
  • 00:18:29
    students have to answer these questions
  • 00:18:31
    so the beauty of this is when I don't
  • 00:18:33
    know the answer to a question yes my
  • 00:18:35
    students I tell them you have to give me
  • 00:18:38
    a good enough convincing answer because
  • 00:18:40
    your grade will depend on the quality of
  • 00:18:42
    your answer
  • 00:18:43
    pretty cool huh so I told my students
  • 00:18:47
    tell me how many different types are
  • 00:18:49
    there and they help you find out the
  • 00:18:52
    answer but they help me find something
  • 00:18:57
    even more important than the answers the
  • 00:18:59
    question that I wanted to understand and
  • 00:19:02
    I'm gonna tell you what I found
  • 00:19:04
    starting with an example I when I when I
  • 00:19:08
    would go to HBS I would listen to the
  • 00:19:10
    radio in my commute and every time I
  • 00:19:13
    listen to the radio the reason I listen
  • 00:19:16
    to the radio is that I wanted to listen
  • 00:19:17
    to my favorite songs
  • 00:19:19
    I liked my personal preference I like
  • 00:19:22
    you too
  • 00:19:24
    Tears for Fears Pearl Jam so 80s and 90s
  • 00:19:27
    rock every time I listen to one of these
  • 00:19:30
    songs I derive pleasure it's what I call
  • 00:19:33
    a value creating activity for me
  • 00:19:35
    every song Valley's being created for me
  • 00:19:38
    but I can't have it always only
  • 00:19:41
    listening to great songs every now and
  • 00:19:43
    then Justin Bieber or Lady gaga pops up
  • 00:19:46
    you might like it not me this is what I
  • 00:19:49
    call a valley roadie activity if I could
  • 00:19:52
    do away with it with a snap of a finger
  • 00:19:53
    never having to listen to it I would
  • 00:19:55
    unfortunately I can't it's a necessary
  • 00:19:57
    evil to listening to radio and so
  • 00:20:00
    listening to dislike songs of value
  • 00:20:02
    roadie I also have to list
  • 00:20:03
    the promoted songs that's how radio
  • 00:20:05
    stations make money and I listen to ads
  • 00:20:07
    these are to value capture activities
  • 00:20:10
    this is how the business makes money so
  • 00:20:13
    if you think about the customer value
  • 00:20:16
    chain of any customer an individual a
  • 00:20:20
    business the government in any industry
  • 00:20:23
    selling any product or service I bet you
  • 00:20:27
    can classify the activities that the
  • 00:20:30
    customers have to go through in value
  • 00:20:32
    creating value eroding and value
  • 00:20:34
    capturing activities that's it ever in
  • 00:20:39
    any industry in any place we customers
  • 00:20:43
    go through activities of value creation
  • 00:20:48
    value capture in value erosion in order
  • 00:20:51
    to satisfy our needs and wants so all
  • 00:20:57
    you can ever do for the benefits of your
  • 00:20:59
    customer is one of three things you can
  • 00:21:03
    either create more value for them you
  • 00:21:05
    can reduce valley charging activities or
  • 00:21:09
    you can eliminate value eroding
  • 00:21:12
    activities do you want to fire more
  • 00:21:15
    customers do one of these three things
  • 00:21:17
    do you want to retain more customers do
  • 00:21:20
    one of these three things you want to
  • 00:21:22
    get them to be loyal do one of these
  • 00:21:24
    three things you're being disrupted
  • 00:21:26
    you're losing customers to the
  • 00:21:27
    competition
  • 00:21:28
    they are probably doing one of these
  • 00:21:30
    things better than you right these are
  • 00:21:33
    the three major avenues there's a
  • 00:21:35
    thousand or maybe millions and millions
  • 00:21:37
    of ways to execute on these three types
  • 00:21:40
    but these are the three broad avenues
  • 00:21:47
    what do I mean
  • 00:21:48
    yeah Valley charging essentially you
  • 00:21:51
    know how you as a customer have to pay
  • 00:21:53
    for what you're getting very simple
  • 00:21:55
    value Rhodey let me give you a few more
  • 00:21:57
    I travel a lot every time I travel I
  • 00:21:59
    stay in a different hotel if I have to
  • 00:22:01
    engage with the hotel to check in they
  • 00:22:04
    asked me to fill out all the information
  • 00:22:05
    so I use Hotel comm I fill out the
  • 00:22:07
    information once every time I travel I
  • 00:22:09
    don't have to do that for each hotel so
  • 00:22:11
    filling out the information it's
  • 00:22:13
    necessary the company the hotel needs it
  • 00:22:16
    but for
  • 00:22:16
    me it doesn't create value filling out
  • 00:22:19
    my information going to the store to buy
  • 00:22:21
    milk unless I like the activity of it or
  • 00:22:25
    driving is a value roading activity it's
  • 00:22:28
    a necessary evil to get the means that I
  • 00:22:30
    want right and so if you can look at
  • 00:22:33
    many industries many business we're all
  • 00:22:35
    doing things that were required to do
  • 00:22:37
    but in and of itself it doesn't create
  • 00:22:39
    value for us so these are the value
  • 00:22:41
    routing activities and there's many many
  • 00:22:43
    many many author out and good disruptors
  • 00:22:47
    they eliminate the need for customers to
  • 00:22:49
    do these value OD activities right
  • 00:22:51
    hotels.com or Netflix don't have to go
  • 00:22:55
    to get the DVD anymore so just to give
  • 00:23:00
    you a few examples now I went back to
  • 00:23:02
    the question how many different types of
  • 00:23:03
    decoupling are there of forms to disrupt
  • 00:23:05
    if there's only three types of
  • 00:23:07
    activities there's only three types of
  • 00:23:09
    decoupling first decoupling value
  • 00:23:12
    creating activities twitch is a great
  • 00:23:14
    example I'm going to give just examples
  • 00:23:16
    in the video game industry twitch allows
  • 00:23:18
    you to go to a website you look at the
  • 00:23:22
    list of games you choose one and you
  • 00:23:25
    essentially go into the chat room you
  • 00:23:26
    can see somebody from around the world
  • 00:23:28
    playing the game they generally have a
  • 00:23:30
    mic just like me and they're talking
  • 00:23:31
    about it and you see the screen of their
  • 00:23:34
    TV and you see their faces from the
  • 00:23:36
    webcam what you can do as a twitch user
  • 00:23:39
    you can maybe ask questions and talk to
  • 00:23:41
    other people as you're seeing somebody
  • 00:23:43
    play the game we all know that playing a
  • 00:23:47
    game is the value creating activity
  • 00:23:49
    these guys these Yale graduates realized
  • 00:23:53
    that seeing the game being played was
  • 00:23:57
    also a value creating activity in that
  • 00:24:00
    60 million people around the world pay
  • 00:24:02
    for the privilege to watch somebody else
  • 00:24:04
    play a game absurd yet this is what we
  • 00:24:10
    learned and they learned it very well in
  • 00:24:13
    three years they built a business and
  • 00:24:14
    they sold it to us on for nine hundred
  • 00:24:16
    and seventy million dollars on that
  • 00:24:18
    premise watching the game being played
  • 00:24:20
    is a value creating activity decoupling
  • 00:24:23
    value Rohde activities as I just said
  • 00:24:25
    the same thing for milk having to go to
  • 00:24:27
    a store to buy a game is a value Rohde
  • 00:24:30
    active
  • 00:24:30
    so steam is essentially the Netflix of
  • 00:24:33
    video game 100 billion users very very
  • 00:24:36
    valuable company as well decoupling is
  • 00:24:38
    due
  • 00:24:38
    and lastly decoupling value charging
  • 00:24:40
    activities not having to buy the game
  • 00:24:44
    and allows businesses like fortnight to
  • 00:24:48
    build a company that you can play the
  • 00:24:52
    game as much as you want for the rest of
  • 00:24:55
    your life indefinitely without ever
  • 00:24:58
    paying anything yet if we all are alike
  • 00:25:02
    in the game we want to differentiate
  • 00:25:03
    ourselves we end up wanting to get you
  • 00:25:06
    know armors and virtual clothing and
  • 00:25:10
    skins and things like that
  • 00:25:11
    2.4 billion dollars of revenue of this
  • 00:25:14
    company right so these are the three
  • 00:25:16
    thoughts
  • 00:25:17
    once I started cataloging all of the
  • 00:25:21
    startups in many different industries
  • 00:25:22
    and I did this initially just with 55
  • 00:25:26
    startups that were using one of these
  • 00:25:29
    three types of disruption either valley
  • 00:25:31
    creating disruption value eroding
  • 00:25:33
    disruption or value charging disruption
  • 00:25:35
    I just got the valuations the value of
  • 00:25:38
    these companies and I put it on the
  • 00:25:39
    graph and this is what I found the
  • 00:25:41
    average value of a valley creating
  • 00:25:45
    disrupter no matter what industry they
  • 00:25:46
    are is at the tune of 600 million
  • 00:25:49
    dollars as measured by what investors
  • 00:25:52
    are willing to pay for it right the
  • 00:25:54
    valuation of a company with a lot of
  • 00:25:56
    variation from two to a billion dollars
  • 00:25:57
    right value eroding do couplers yeah
  • 00:26:01
    there are a hundred and fifty million
  • 00:26:02
    dollars worth but not as much as a
  • 00:26:04
    valuation disruption and the valley
  • 00:26:07
    charging ones at around 350 million
  • 00:26:09
    dollars it's some variation right so the
  • 00:26:12
    key point is across industries first
  • 00:26:15
    what explains this so you know I don't
  • 00:26:18
    have time to put all the details but as
  • 00:26:20
    Michael said read the book and I have a
  • 00:26:23
    few hypotheses but it's still
  • 00:26:25
    work-in-progress there's a lot of
  • 00:26:27
    factors might impact this the point is
  • 00:26:29
    regardless of the industry there are
  • 00:26:31
    only three types of decoupling this form
  • 00:26:33
    of disruption in the market the investor
  • 00:26:36
    market seems to value them very very
  • 00:26:38
    differently so to the extent that you
  • 00:26:40
    want to build a start-up this provides
  • 00:26:42
    you some information of what you should
  • 00:26:44
    to focus on so after after learning
  • 00:26:49
    these three different types I said to
  • 00:26:51
    myself okay I can build a startup that
  • 00:26:53
    tries to decouple but that doesn't mean
  • 00:26:55
    I'm going to succeed when will I succeed
  • 00:26:58
    when will I not I want to know this
  • 00:26:59
    before I engage invest my time money and
  • 00:27:02
    effort in all of this right so I went
  • 00:27:04
    back to the beauty industry and I
  • 00:27:07
    thought about it what are the three key
  • 00:27:09
    activities in the customer value chain
  • 00:27:11
    sampling sampling is important there's
  • 00:27:14
    new innovation and products are very
  • 00:27:16
    customized they need to a first purchase
  • 00:27:18
    of a full-size item and if you like it
  • 00:27:21
    you need to replenish that cream that
  • 00:27:22
    you bought so why would a consumer go
  • 00:27:26
    through Sephora to do all these
  • 00:27:27
    activities first if you go to Sephora
  • 00:27:30
    they have these Beauty consultants that
  • 00:27:33
    help you sample the products right so
  • 00:27:35
    they have the expertise and once you
  • 00:27:36
    know what you like it's very convenient
  • 00:27:39
    for you to go to the shelf and grab that
  • 00:27:40
    item and then afterwards you know where
  • 00:27:42
    Sephora is you know where the item is in
  • 00:27:44
    the shelf you can replenish it easily
  • 00:27:46
    right so if you care about the expertise
  • 00:27:49
    and you care about the simplicity as a
  • 00:27:51
    customer chances are you're going to
  • 00:27:54
    integrate these activities that's why I
  • 00:27:57
    call them integration forces you're
  • 00:27:59
    going to do what we would call one-stop
  • 00:28:01
    shop do all these activities with this
  • 00:28:03
    Sephora but what if you as a customer
  • 00:28:06
    you care about convenience I don't want
  • 00:28:08
    to go to the Sephora store to sample
  • 00:28:10
    beauty products chances are you might go
  • 00:28:12
    with epsy which is the Stanford knockoff
  • 00:28:15
    of the Harvard Birchbox not as good not
  • 00:28:19
    as good but similar business model right
  • 00:28:22
    you might want to subscribe to these
  • 00:28:24
    beauty products and have the convenience
  • 00:28:26
    once you know what you like if you
  • 00:28:28
    really care about price price-sensitive
  • 00:28:30
    most likely you're going to go in Amazon
  • 00:28:32
    in speed there's Amazon sell this
  • 00:28:33
    product very cheap and in most cases
  • 00:28:36
    Amazon does not all of them and so you
  • 00:28:38
    might buy make the first purchase with
  • 00:28:40
    Amazon and then but what if you really
  • 00:28:42
    care about the assurance you need that
  • 00:28:44
    beauty product every day in your counter
  • 00:28:47
    to use if you care about assurance keels
  • 00:28:50
    a division of L'Oreal created a new
  • 00:28:52
    service for you you go online and you
  • 00:28:55
    choose the cream that you want
  • 00:28:57
    and you say how often you use it you use
  • 00:28:59
    more in the summer less in the winter
  • 00:29:01
    you put up your frequency there and
  • 00:29:03
    they'll preemptively start shipping the
  • 00:29:06
    beauty product to your house frequently
  • 00:29:08
    you don't need to keep asking for more
  • 00:29:10
    they don't sell the bottle of the beauty
  • 00:29:11
    product they sell the service of
  • 00:29:13
    assuring you that you will always have
  • 00:29:15
    the cream that's why they call it beauty
  • 00:29:17
    as a service you get the service they
  • 00:29:19
    charge it for the service right so if
  • 00:29:21
    you care about those you're more
  • 00:29:23
    specializing with I'm going to work with
  • 00:29:26
    epsy and Amazon and Kiehl's versus
  • 00:29:28
    working with Sephora so consumers are
  • 00:29:31
    torn between these two forces I want to
  • 00:29:33
    do one-stop shopping i integrate all of
  • 00:29:36
    these activities or I am specializing
  • 00:29:38
    these activities because I care about
  • 00:29:40
    different things in each part of the
  • 00:29:41
    process right
  • 00:29:43
    to summarize what I tell my students
  • 00:29:46
    when they're trying to open startups and
  • 00:29:49
    thinking about disruptive ideas focusing
  • 00:29:52
    on customers I said I tell them look
  • 00:29:56
    think of it this way your customer no
  • 00:29:59
    matter who he or she will be and what
  • 00:30:02
    you will buy or what you will sell to
  • 00:30:04
    them imagine your customers as having
  • 00:30:07
    three different currencies in their
  • 00:30:09
    pockets and they're going about their
  • 00:30:12
    day to day trying to get what they want
  • 00:30:15
    trying to get what they need and trying
  • 00:30:17
    to reduce the monetary the time and the
  • 00:30:21
    effort costs associated with acquiring
  • 00:30:24
    those goods and services we as consumers
  • 00:30:26
    have these three fungible currencies
  • 00:30:30
    virtual currencies in our pockets we're
  • 00:30:32
    actually not thinking of them this way
  • 00:30:34
    but over time eventually this is what
  • 00:30:36
    happens the startups that disrupt and
  • 00:30:39
    decouple are the ones that can minimize
  • 00:30:41
    the time the effort and the monetary
  • 00:30:45
    costs at each stage of the process it's
  • 00:30:49
    not all of it at each stage of the
  • 00:30:52
    process if you can reduce monetary time
  • 00:30:55
    and efforts that dictates whether
  • 00:30:57
    customers will choose to decouple or to
  • 00:31:00
    just use one company for all those
  • 00:31:03
    activities so
  • 00:31:07
    by learning all of these things in the
  • 00:31:09
    step I said okay if I put it all
  • 00:31:11
    together I start getting some form of
  • 00:31:14
    format or recipe for disruption right a
  • 00:31:18
    way to think about the process of
  • 00:31:21
    stealing customer activities before I
  • 00:31:23
    tell you this process just wanna make
  • 00:31:26
    sure you understand what a recipe is
  • 00:31:27
    there's a recipe guarantee success that
  • 00:31:31
    gives you if I give you a recipe of cake
  • 00:31:33
    does it guarantee that cake will taste
  • 00:31:35
    well if you use it No
  • 00:31:36
    so recipes don't guarantee success
  • 00:31:39
    recipes are series of logical steps and
  • 00:31:42
    ingredients if you do the steps and
  • 00:31:45
    these ingredients the chances that the
  • 00:31:47
    cake will taste really bad or minimized
  • 00:31:49
    okay just so you notice so what is my
  • 00:31:53
    recipe that I've learned map out the
  • 00:31:56
    customer value chain this is the first
  • 00:31:59
    and most important step you'll ever do
  • 00:32:01
    what are all of the activities that
  • 00:32:03
    customers need to go through in the
  • 00:32:05
    process of acquiring goods and services
  • 00:32:08
    in marketing we used to say this thing
  • 00:32:11
    oh you have to have a tension interest
  • 00:32:13
    desire action that doesn't help anything
  • 00:32:14
    because you use it in all sorts of
  • 00:32:16
    industries no if I have to buy a
  • 00:32:18
    hamburger what do I actually need to do
  • 00:32:20
    you know I need to think about what I
  • 00:32:22
    want I need to go to the store I need to
  • 00:32:25
    order off the menu I need to pay it I
  • 00:32:27
    need to wait for it to receive it right
  • 00:32:29
    I use distance the the packaging these
  • 00:32:32
    are all activities that help me start
  • 00:32:34
    understanding in more detail is there an
  • 00:32:36
    opportunity for me to decouple one of
  • 00:32:38
    these activities right the same thing
  • 00:32:40
    with buying a car or education
  • 00:32:43
    transportation healthcare map out all
  • 00:32:46
    these activities it sounds easy
  • 00:32:47
    as a consultant to big businesses I tell
  • 00:32:50
    you it's the hardest step of all but
  • 00:32:52
    it's necessary then identify the type of
  • 00:32:55
    value in each activity is it evaluating
  • 00:32:57
    activity a valid eroding activity or
  • 00:32:59
    valley capturing why because they'll be
  • 00:33:02
    critical into what type of disruption
  • 00:33:04
    you will actually be trying to do then
  • 00:33:06
    you find the weak link in this process
  • 00:33:10
    somewhere those customers are not fully
  • 00:33:14
    satisfied or happy with that activity
  • 00:33:16
    they can be happy with everything
  • 00:33:18
    because companies have to do lots of
  • 00:33:19
    things
  • 00:33:20
    and so I'm unhappy with something
  • 00:33:22
    customers are happy find the weak link
  • 00:33:25
    because that is your beachhead that's
  • 00:33:26
    where you're going to try to steal a
  • 00:33:27
    customer activity and how do you do that
  • 00:33:30
    by increasing the specialization forces
  • 00:33:32
    reducing the monetary the time and the
  • 00:33:35
    effort cost if you reduce these costs
  • 00:33:37
    for the customers by the powers that be
  • 00:33:39
    you are going to eventually start to
  • 00:33:41
    bring customers in they would eventually
  • 00:33:45
    start noticing that it's cheaper faster
  • 00:33:47
    easier to get the goods and services
  • 00:33:49
    that they need right and then you
  • 00:33:52
    anticipate the competitive response let
  • 00:33:58
    me show you a few examples of my
  • 00:33:59
    students actually using the formula in
  • 00:34:01
    the real estate industry Pro logis is
  • 00:34:03
    the biggest owner of commercial real
  • 00:34:05
    estate space one of my students said we
  • 00:34:07
    know stores mom-and-pop shops small
  • 00:34:10
    boutique stores any retailer needs to
  • 00:34:12
    showcase the product that's the valley
  • 00:34:14
    creating activity but unfortunately they
  • 00:34:16
    have to own the space that the valley
  • 00:34:17
    capture activity so how can I my student
  • 00:34:21
    lower the cost to display products or
  • 00:34:23
    services
  • 00:34:23
    he created storefront with storefront if
  • 00:34:26
    you own a store imagine you own that
  • 00:34:28
    little boutique shop you can actually
  • 00:34:31
    look at parts of your store that are not
  • 00:34:33
    being utilized like way back in there in
  • 00:34:36
    the corner and you could go to the
  • 00:34:37
    website and you can virtually sell or
  • 00:34:41
    rent that piece of your store to another
  • 00:34:43
    manufacturer retailer not a competitor
  • 00:34:45
    obviously so if I sell watches I could
  • 00:34:47
    ship watches to that store and either I
  • 00:34:50
    pay a flat fee or a commission and this
  • 00:34:52
    person that owns the store is now being
  • 00:34:54
    able to sell watches in that part and
  • 00:34:57
    make it money as well right decoupling
  • 00:34:59
    these activities now I don't need to own
  • 00:35:01
    the space now if I'm a manufacturer
  • 00:35:03
    retailer I can flood the US market with
  • 00:35:05
    my products in a matter of a few weeks
  • 00:35:07
    or months very very quickly and startups
  • 00:35:10
    are starting to do that in the
  • 00:35:13
    healthcare and in the lab testing
  • 00:35:16
    industry so uh Julia cheek from Everly
  • 00:35:19
    well she that's her
  • 00:35:22
    she created a startup that if you have
  • 00:35:25
    to to do one of many tests lab tests
  • 00:35:29
    that involve either a drop of blood not
  • 00:35:32
    the full size violin a drop of blood
  • 00:35:35
    your inner saliva you can request the
  • 00:35:37
    test so a woman's fertility food
  • 00:35:40
    sensitivity to start their own and
  • 00:35:42
    thirty other types you can go online
  • 00:35:44
    request for the kit it goes to your
  • 00:35:47
    house you can put the blood urine or
  • 00:35:49
    saliva there send it back to her what do
  • 00:35:52
    you think she does she creates invest
  • 00:35:54
    billions of dollars in doing labs to to
  • 00:35:57
    test these no she sends it to a
  • 00:35:58
    traditional lab gets the result back and
  • 00:36:01
    uploads the result to for the consumer
  • 00:36:04
    and for the physician of the consumer
  • 00:36:06
    avoiding you having to take a trip to
  • 00:36:09
    physically get things that you can do at
  • 00:36:13
    home so attempting to disrupt this the
  • 00:36:15
    company requires this five-step process
  • 00:36:17
    that can be used in virtually any
  • 00:36:19
    industry right it's a very generic
  • 00:36:21
    approach to thinking about how to
  • 00:36:23
    disrupt an industry by really focusing
  • 00:36:25
    on the customer value chain now how do
  • 00:36:29
    you respond what if you're a big
  • 00:36:31
    business and you're looking at this your
  • 00:36:33
    GM you're a big pharmaceutical company
  • 00:36:37
    you're a big real estate developer what
  • 00:36:41
    do you do well imagine that disruption
  • 00:36:47
    means something is breaking in this case
  • 00:36:49
    decoupling means the value chain is
  • 00:36:51
    being broken of the customer if somebody
  • 00:36:54
    breaks something of you what how can you
  • 00:36:56
    respond what can you do you can either
  • 00:37:01
    glue it back or you can learn to live
  • 00:37:05
    with the fact that it's broken so the
  • 00:37:07
    gluing it back is called I call it
  • 00:37:09
    really naturally and let me give you an
  • 00:37:13
    example of a company to try to recover
  • 00:37:15
    so silic supplies sells gluten-free
  • 00:37:18
    products a retailer has three stores in
  • 00:37:21
    Australia gluten-free products in glue
  • 00:37:24
    Tina was one of them and glooty know as
  • 00:37:26
    a manufacturer obviously wanted to do
  • 00:37:28
    like Amazon it wanted to get people to
  • 00:37:30
    buy the products online but how do you
  • 00:37:32
    get a people's attention well put the
  • 00:37:33
    product in the shelf space assilex
  • 00:37:36
    applies and other retailers and then put
  • 00:37:38
    the you know the website come by you
  • 00:37:40
    know and say buy online and people can
  • 00:37:42
    see you oh it's cheaper to buy online so
  • 00:37:44
    what people were doing is just going to
  • 00:37:46
    the store browsing
  • 00:37:48
    at Sulak supplies but then buying
  • 00:37:50
    decoupling buying with the manufacturer
  • 00:37:53
    of the goods which is butene oh right
  • 00:37:55
    and so Sulak supplies said enough with
  • 00:37:57
    this people are coming into our stores
  • 00:38:00
    they're looking they're tasting
  • 00:38:01
    everything and then they buy online and
  • 00:38:03
    we don't make any money that's not fair
  • 00:38:04
    so we're going to reek up all these
  • 00:38:06
    activities browsing and buying is going
  • 00:38:10
    to be reek up 'old so the owner of the
  • 00:38:11
    store put this pamphlet in the front of
  • 00:38:14
    her her door dear customer as over the
  • 00:38:16
    first of February the store will be
  • 00:38:18
    charging people a five-dollar fee just
  • 00:38:21
    for looking the five-dollar fee will be
  • 00:38:22
    deducted when goods are purchased so
  • 00:38:25
    basically if you buy anything you don't
  • 00:38:26
    need to pay for it and then afterwards
  • 00:38:28
    she just claims how it's unfair but
  • 00:38:30
    she's not making money all the cost this
  • 00:38:32
    and that right what do you think five
  • 00:38:34
    dollars to the store if you don't pay
  • 00:38:36
    anything that sounds fair right you're
  • 00:38:39
    investing in inventory you're giving
  • 00:38:41
    people all these options to taste-test
  • 00:38:43
    you have sales people people need to pay
  • 00:38:45
    if they don't buy it what do you think
  • 00:38:47
    no not good
  • 00:38:50
    you wouldn't enter you wouldn't enter in
  • 00:38:53
    so many people one answer that the
  • 00:38:55
    company went out of business so that's
  • 00:38:58
    what happened but the point is the point
  • 00:39:02
    is that maybe she was thinking or I
  • 00:39:06
    should just executed it wrong right
  • 00:39:09
    now the fact is that when I looked at
  • 00:39:13
    most of the big companies that were
  • 00:39:16
    being disrupted by decoupling like
  • 00:39:21
    telefónica Lexmark printers NBC Gillette
  • 00:39:25
    JPMorgan Chase and Best Buy their
  • 00:39:28
    instinctive in first reaction to all
  • 00:39:30
    decoupling by startups was doing exactly
  • 00:39:32
    what
  • 00:39:33
    seelix supplies did trying to force the
  • 00:39:36
    customer oh no you can't you can't
  • 00:39:38
    decouple the customer value chain in so
  • 00:39:42
    many words that's what they end up doing
  • 00:39:44
    which is this natural response somebody
  • 00:39:46
    breaks something of yours it's very
  • 00:39:48
    valuable you try to glue it back and not
  • 00:39:50
    let them do it anymore
  • 00:39:51
    Best Buy same thing Best Buy people were
  • 00:39:55
    going to the stores and looking and
  • 00:39:57
    asking for sales people's advice and
  • 00:39:58
    then they're going to pull out the
  • 00:40:00
    Amazon phone and say
  • 00:40:01
    I'm gonna buy this right here now right
  • 00:40:03
    so Best Buy executives
  • 00:40:05
    even thought of the option well what if
  • 00:40:08
    we put signal jamming devices in our
  • 00:40:10
    stores just like in the prisons and then
  • 00:40:12
    once you go in the story you can't use
  • 00:40:14
    your cell phone so you can't practice
  • 00:40:16
    showrooming right trying to force again
  • 00:40:19
    fortunately they were smart enough to
  • 00:40:21
    realize that was going against the
  • 00:40:24
    customer's natural desires and there is
  • 00:40:26
    a better approach which is preemptively
  • 00:40:29
    brake yourself instead of waiting for a
  • 00:40:31
    disrupter to break you you preemptively
  • 00:40:33
    break yourself you learn to live with
  • 00:40:35
    this and let me show you what Best Buy
  • 00:40:38
    ended up doing seeing that people were
  • 00:40:41
    going to the store and practicing
  • 00:40:43
    showrooming browsing on Best Buy and
  • 00:40:46
    then buying online
  • 00:40:48
    what Best Buy decided to do is they said
  • 00:40:52
    okay if customers want to showroom let
  • 00:40:55
    them let them do it
  • 00:40:57
    let them they started encouraging people
  • 00:41:01
    to come to our stores and browse
  • 00:41:02
    products no need to buy browse product
  • 00:41:05
    they even created TV ads your ultimate
  • 00:41:07
    holiday showroom unfortunately there's a
  • 00:41:11
    puzzle there which is okay if people
  • 00:41:13
    keep doing this our store has huge costs
  • 00:41:16
    and we're not going to make any money so
  • 00:41:18
    first they said we needed to price match
  • 00:41:20
    with Amazon we need to have the same
  • 00:41:22
    price if you see a cheaper price we will
  • 00:41:25
    offer you at the same price but we still
  • 00:41:27
    have a problem because Amazon doesn't
  • 00:41:29
    make money
  • 00:41:29
    yeah and Amazon doesn't have all these
  • 00:41:31
    costs of stores and inventory and sales
  • 00:41:33
    people so they needed to figure out a
  • 00:41:36
    change in their business model and what
  • 00:41:37
    they realized is that when people are
  • 00:41:41
    just browsing whether they it on Amazon
  • 00:41:45
    or they buy it on Best Buy somebody is
  • 00:41:48
    always benefiting it's a value creating
  • 00:41:51
    activity for somebody that is not the
  • 00:41:53
    shopper which is the supplier Samsung if
  • 00:41:56
    it sells on Amazon are Best Buy
  • 00:41:58
    it always makes money and so Samsung was
  • 00:42:03
    getting something for free when people
  • 00:42:05
    were browsing so it decided to say from
  • 00:42:07
    now on the manufacturers will have to
  • 00:42:09
    pay for the space that they put their
  • 00:42:13
    products that we showcase in the store
  • 00:42:15
    this was the first time that an
  • 00:42:18
    electronic retailer started practicing
  • 00:42:20
    something that is called slotting fees
  • 00:42:22
    common in supermarkets supermarkets have
  • 00:42:24
    to pay to put products on the shelf and
  • 00:42:28
    so right now what you see today if you
  • 00:42:32
    go into a Best Buy store what you see is
  • 00:42:36
    a parking lot for brands and products in
  • 00:42:38
    this parking lot all the spaces are
  • 00:42:40
    reserved and are paid for by the
  • 00:42:43
    manufacturers and with that Best Buy
  • 00:42:47
    changed its business model to one of
  • 00:42:49
    bringing people into the stores and
  • 00:42:51
    selling their attention to manufacturers
  • 00:42:54
    yeah they make money on selling goods
  • 00:42:57
    and services but the margins are slim
  • 00:42:58
    but they really are making money on is
  • 00:43:01
    getting the attention and selling it
  • 00:43:03
    right preemptively and here you will see
  • 00:43:06
    the CEO the former CEO he stepped down
  • 00:43:08
    last year CEO of Best Buy to your left
  • 00:43:11
    uber jolie and the CEO of samson north
  • 00:43:15
    america aj kim in the first handshaking
  • 00:43:18
    of the first ever manufacturer of
  • 00:43:20
    electronics to pay for slotting fees to
  • 00:43:22
    a retailer and if you look closely
  • 00:43:25
    ladies and gentlemen one of these
  • 00:43:26
    gentlemen are smiling much more than the
  • 00:43:29
    other one right so incumbents can
  • 00:43:35
    respond to the threat of being decouple
  • 00:43:37
    in two ways they can wreak Uppal or they
  • 00:43:40
    can decouple themselves those are the
  • 00:43:42
    broad avenues of responding again
  • 00:43:45
    there's many ways to execute and it's
  • 00:43:48
    not easy to just execute on it but these
  • 00:43:50
    are the broad responses that are
  • 00:43:52
    happening one of the key elements behind
  • 00:43:56
    the Best Buy story is Best Buy was
  • 00:43:58
    creating value for manufacturers but it
  • 00:44:01
    wasn't capturing any of this value
  • 00:44:03
    before it started charging slotting fees
  • 00:44:05
    it would only capture from the shopper
  • 00:44:07
    if you bought the product and the
  • 00:44:09
    difference between value creation of
  • 00:44:10
    value captures what I call leakage and
  • 00:44:12
    many companies have leakage of value
  • 00:44:15
    they are creating value but they can't
  • 00:44:18
    get paid enough for this value and value
  • 00:44:21
    is being leaked
  • 00:44:21
    sometimes being leaked to the customer
  • 00:44:23
    sometimes is being leaked towards
  • 00:44:26
    competitors such that design can benefit
  • 00:44:28
    from that
  • 00:44:29
    this particular case and the way to
  • 00:44:31
    address leakage of value is to practice
  • 00:44:34
    what I call rebalance rebalancing means
  • 00:44:36
    that you capture value at every stage of
  • 00:44:39
    the customer value chain in which you're
  • 00:44:41
    creating value if you create value in
  • 00:44:44
    capture at every stage then you minimize
  • 00:44:46
    the chances that a disrupter sees an
  • 00:44:49
    opportunity to come in and steal that
  • 00:44:52
    activity right so where do you grow next
  • 00:44:58
    I'm running out of time so I'm just
  • 00:45:00
    gonna go very quickly with your so after
  • 00:45:02
    you disrupt how do you grow how do
  • 00:45:04
    startups grow well we can look at the at
  • 00:45:07
    the past of what others told us in the
  • 00:45:09
    1980s this guy called mark Mogu said go
  • 00:45:12
    to growth markets how do you grow
  • 00:45:13
    business you go where the market is
  • 00:45:15
    growing so he said let's go to two to
  • 00:45:18
    Southeast Asia and then he saw I
  • 00:45:20
    everybody went to Southeast Asia and so
  • 00:45:22
    when it was growing rally he made money
  • 00:45:25
    in the beginning of here the first but
  • 00:45:26
    it gets a lot of ones you don't really
  • 00:45:27
    make money right but then Michael Porter
  • 00:45:30
    on my former colleague in 1985 said it's
  • 00:45:32
    not about the biggest markets it's about
  • 00:45:34
    where you have competitive advantage you
  • 00:45:35
    have to work where you are good at
  • 00:45:37
    relative to all of the other forces in
  • 00:45:40
    the market so talked about the Five
  • 00:45:42
    Forces and so you go you go into markets
  • 00:45:45
    and what you have this competitive
  • 00:45:46
    advantage in terms of these forces and
  • 00:45:48
    then my CKD Prahlada if the 90 said no
  • 00:45:53
    no it's not about this only it's not
  • 00:45:57
    about having an advantage it's about
  • 00:45:59
    having advantage is something that it's
  • 00:46:01
    core to you and what you do it's not
  • 00:46:04
    just an advantage generally and he
  • 00:46:05
    create the idea of core competencies and
  • 00:46:07
    then lastly in 2000s early 2000s Chris
  • 00:46:11
    Zook who's a consultant of Bain said now
  • 00:46:13
    wait a minute that's too broad stifle
  • 00:46:15
    you could pull in adjacent markets
  • 00:46:17
    because if you have a core competency
  • 00:46:19
    and you go to another country to
  • 00:46:21
    manufacture something completely
  • 00:46:22
    different from what is is is core to you
  • 00:46:26
    then you're gonna run into trouble so
  • 00:46:28
    you need to as you grow you need to go
  • 00:46:31
    to adjacent markets because then you
  • 00:46:33
    minimize the risk that you have to do
  • 00:46:34
    something completely new that you're not
  • 00:46:36
    used to it
  • 00:46:37
    yet when we look at startups follow none
  • 00:46:40
    of these advices right if you look
  • 00:46:43
    a fast-growing startup like Adi is for
  • 00:46:50
    example Alibaba business-to-business
  • 00:46:51
    shopping then business-to-consumer then
  • 00:46:53
    shop consumer they created a company
  • 00:46:57
    called Ali Wong Wong which is a
  • 00:46:58
    text-based messaging device and it
  • 00:47:01
    created a pay but you can pay for the
  • 00:47:03
    items that you buy online and then it
  • 00:47:07
    for arrival you know the Google
  • 00:47:11
    equivalent Baidu and then they create an
  • 00:47:13
    Ali you which is a browser operating
  • 00:47:15
    system and then they purchased and build
  • 00:47:19
    a a delivery network called con yell and
  • 00:47:23
    then lastly 2015 purchased a device a
  • 00:47:27
    mobile device manufactured called major
  • 00:47:30
    if you look at this there's no visible
  • 00:47:33
    synergy which is the basis of all of the
  • 00:47:36
    other academics and consultants that
  • 00:47:37
    talked about the port there's no
  • 00:47:39
    synergies no strong synergies in my mind
  • 00:47:41
    between doing retailing and doing
  • 00:47:44
    software and hardware and doing
  • 00:47:46
    financial payment services doing
  • 00:47:48
    logistics these are very very different
  • 00:47:50
    businesses what they do potentially
  • 00:48:03
    potentially you know but even
  • 00:48:06
    conglomerates there's some conglomerates
  • 00:48:08
    obviously have gone in very different
  • 00:48:09
    markets and they stay within the country
  • 00:48:11
    because of regulatory issues they have a
  • 00:48:13
    benefit but most kendama conglomerates
  • 00:48:15
    are still selling products that are
  • 00:48:17
    adjacent to their industries they don't
  • 00:48:19
    start doing payments and logistics in
  • 00:48:21
    this and this is that very very far away
  • 00:48:22
    my interpretation of this is the reason
  • 00:48:27
    the benefit of all doing all this is
  • 00:48:30
    that they're really looking at synergies
  • 00:48:33
    of what they can do but they're looking
  • 00:48:35
    at synergies from the point of view of
  • 00:48:37
    the customer
  • 00:48:39
    they've started mapping out the customer
  • 00:48:41
    value chain what do you as a customer
  • 00:48:43
    need to do in order to buy product
  • 00:48:46
    online and receive it you need to pull
  • 00:48:48
    out your cell phone you choose your
  • 00:48:49
    operating system you search you you buy
  • 00:48:52
    from someplace you talk to negotiate
  • 00:48:54
    terms and you pay for and you receive
  • 00:48:57
    it they started capturing all of the
  • 00:48:59
    activities in the customer ecology so
  • 00:49:01
    this process after you decouple these
  • 00:49:03
    big tech giants are coupling activities
  • 00:49:06
    in growing around the customer value
  • 00:49:08
    chain instead of let's go to all these
  • 00:49:10
    different industries and try to to
  • 00:49:12
    benefit by going independently right so
  • 00:49:16
    what I just summarized what I told you
  • 00:49:18
    decoupling how do you enter how do you
  • 00:49:20
    disrupt markets coupling how do you grow
  • 00:49:22
    after you enter and you capture one
  • 00:49:24
    activity and then how do you respond by
  • 00:49:26
    rebalancing and recovery right to end
  • 00:49:28
    just a few myths things that I've heard
  • 00:49:30
    again and again again that I just based
  • 00:49:32
    on my research based on my experience
  • 00:49:34
    they are just not true
  • 00:49:35
    when we look at the couplers and we look
  • 00:49:37
    at the industries
  • 00:49:39
    first we start seeing the real force
  • 00:49:42
    behind digital disruption we're starting
  • 00:49:45
    to see this image to me customers
  • 00:49:47
    disrupt markets not startups it's not
  • 00:49:50
    the technology it's not that startups
  • 00:49:52
    per se startups are just in many cases
  • 00:49:54
    faster than big companies at addressing
  • 00:49:56
    the evolving changes in the needs of
  • 00:49:59
    customers
  • 00:50:00
    point number two there's so many new
  • 00:50:03
    technologies 3d printing wearables
  • 00:50:04
    blockchain VR AR Bitcoin the executives
  • 00:50:10
    today are just shocked there's just too
  • 00:50:12
    much too much new things it's just you
  • 00:50:15
    know to be able to absorb and understand
  • 00:50:18
    all these technologies luckily in my
  • 00:50:21
    view the disruptive ingredient is
  • 00:50:23
    business model innovation not technology
  • 00:50:26
    alone not primarily technology in many
  • 00:50:29
    cases if you are a seller of technology
  • 00:50:31
    obviously you need to build new
  • 00:50:33
    technologies but in most cases if you're
  • 00:50:35
    not a seller you're a user
  • 00:50:36
    technology is not the disrupter it's a
  • 00:50:38
    business model innovation in the company
  • 00:50:41
    so also consultants like me and
  • 00:50:44
    professors like I used to be in girls we
  • 00:50:47
    all have the answers about digital
  • 00:50:48
    disruption transformation these are
  • 00:50:50
    actually frameworks that are proposed by
  • 00:50:52
    many of these people they tend to be
  • 00:50:54
    round for some reason and they tend to
  • 00:50:56
    be colorful to explain about digital
  • 00:50:58
    disruption works if you don't like round
  • 00:51:01
    symbols if you like a triangle they have
  • 00:51:04
    a triangle they have a diamond shape
  • 00:51:06
    they have eggs egg on and my favorite
  • 00:51:08
    the honeycomb model of digital
  • 00:51:10
    transformation
  • 00:51:11
    forget about all this there's a common
  • 00:51:14
    approach to disruption I'm an approach
  • 00:51:17
    requires understanding the value chain
  • 00:51:19
    what customers are actually trying to do
  • 00:51:22
    trying to accomplish and looking at how
  • 00:51:24
    you can break apart these so reviews
  • 00:51:26
    sites are breaking apart decoupling
  • 00:51:28
    considering from choosing pop-up stores
  • 00:51:30
    or decoupling purchasing from receiving
  • 00:51:31
    products you go to the store you buy but
  • 00:51:33
    you don't get it it's delivered to your
  • 00:51:35
    house showroom the driver with me or
  • 00:51:37
    other decoupling consume me in disposing
  • 00:51:39
    your products and services we don't even
  • 00:51:41
    have this word and even the sharing
  • 00:51:42
    economy in which you purchased purchased
  • 00:51:45
    things to consume it are are an example
  • 00:51:48
    if you think about it of the company in
  • 00:51:49
    general right and my favorite example is
  • 00:51:51
    my daughter wants a puppy now she's
  • 00:51:55
    seven years old the acquisition cost of
  • 00:51:57
    the puppy is going to bear on me and the
  • 00:51:59
    maintenance cost is going to be borne on
  • 00:52:02
    me as well and so I'm figuring out how
  • 00:52:04
    can i address her need to actually pay
  • 00:52:06
    with the puppy luckily there's borrow my
  • 00:52:08
    doggy if you have a dog in your
  • 00:52:09
    traveling you can loan the dog to
  • 00:52:11
    somebody for the weekend and this person
  • 00:52:13
    like me could spend the dog give the dog
  • 00:52:15
    my kids and then when they return home
  • 00:52:18
    from the trip you can return the dogs so
  • 00:52:20
    sharing economy is that this best ladies
  • 00:52:24
    and gentlemen thank you so much for your
  • 00:52:25
    time really appreciate
标签
  • disruption
  • technology
  • startups
  • business model
  • decoupling
  • customer value chain
  • digital disruption
  • innovation
  • corporate strategy
  • market adaptation