Tuesday, August 28, 2012

How Much Disruption is...Disruptive?

This is cross-post from the class message board.

Looking at the two products in the Timberland case one thing that struck me was the juxtaposition of Travel Gear with Precise Fit. The former was a completely revolutionary idea that could have changed the very notion of footwear consumption and the latter was a simple insert to make shoes fit better. As prospective entrepreneurs I think we all have at least a slight inclination towards the big disruption, the revolution. In our first lecture we were already informed that "me too" business plans are a tough sell so innovation is imperative and disruptive innovation seems even more desirable, which begs the question, how much disruption is disruptive?

Focusing on the disruptive aspects of the two products it is clear that they were both disruptive to varying degrees with distinctly different "disruptees". Travel Gear was monumentally disruptive to pretty much everyone involved, customers would be disrupted because an entirely new way to consume footwear was being introduced, competition was disrupted because they would have to adapt to a radically different landscape, and internal stakeholders were disrupted because they had to make, pack, and market this footwear revolution. This product was a nuclear warhead of disruption, and much to its detriment, it was engineered in isolation, which only exacerbated its disruptive qualities. Compare this with Precise Fit, which really only "disrupts" the competition who must now adapt and combat Timberland's improved customer experience. The overall process for the consumer was enhanced, not altered fundamentally. The overall process for the internal stakeholders was far less disruptive thanks to input and a more democratic R&D process on this invention. Precise Fit was the kind of disruption that harkened back to the original silicone impregnated leather boots from Timberland's origin. The only disrupted players in the game were competition who had to catch up, the customers got a better experience and the internal stakeholders were involved early and as a result the company flourished.

This provides a valuable lesson to start up plans. Applied disruption (or "creative destruction", as mentioned in class, e.g. Precise Fit) leads to differentiation, market acceptance, and ultimate success while catastrophic disruption (e.g. Travel Gear) leads to confusion, market rejection, and ultimate failure. Extrapolating from the case study it appears that a key way to ensure that disruption is productive instead of destructive is to remain customer centric. Travel Gear tried to solve a customer problem (traveling footwear) that suffered from two flaws, one it was a problem that most people probably did not even know they had, and two it added at least one problem (confusion). Trying to answer an unasked question in a potentially vexing way is not customer-centric, and a lack of customer-centrism probably condemned Travel Gear to the scrap heap. Precise Fit sought to solve a very pervasive problem, that I am sure many people have. By focusing on a real and pervasive external customer problem (people who buy shoes) and internal customer problem (internal stakeholders who have to implement) the iF team was able to disrupt its antagonists (competition) without disrupting those who drive the success the most (customers and colleagues). So if we, as future disrupting agents, also apply precise disruption when we seek to get our ideas off the ground, we too should have similar success.

So let's all strive to disrupt in an orderly fashion.

Wednesday, August 22, 2012