How does business compete in the era of niche? One theory: disruptive innovation. Create products and services at the lower end of the market that large corporations ignore, make them go mainstream, dominate. For more on disruptive innovation follow Geoffrey Colon on Twitter @djgeoffe or listen to his podcast on Spreaker.com

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Disruptive Innovation "
Presented by Geoffrey Colon, VP of Social@Ogilvy!
: @djgeoffe!
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Disrupt or be disrupted…"
Disruptive Innovation: How digital disruption helps small
businesses compete with Goliaths"
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Every startup I meet with says it will destroy its competition.
For every KPI they tell me the same thing: They’re faster, they
have better technology, their revenue model is more efficient.
Plus it’s smaller and nimbler than the big companies so it will
be able to innovate faster.!
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Although that is why many will succeed, that is also why they
will fail.!
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What every startup and SMB should do instead, to give you
all the best chance of succeeding and surviving, is enter the
market at the low end of performance. Offer a product/service
that’s not necessarily as good as your competitors, but is
cheaper and more accessible.!
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Lower cost, lower performance, gets better over time… !

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What do I know?"
I’m originally from Bethlehem, Pennsylvania. I watched Bethlehem Steel get disrupted in the
80s by specialty steel manufacturer’s abroad. I worked in the music industry and watched
Napster and P2P destroy the CD distribution model. I am now in the agency world and am
living through major disruptions. Nothing is safe. Why? Three reasons:!
▪ The combination of today’s TECHNOLOGY and increasing speed of innovation has forced many a leader
into an anxiety-ridden headspace, and they often make poor innovation moves as a result or none at all.
This allows you to play the role of the disruptor.!
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▪ Being an INCUMBENT means little. Remember Kodak? Look at Google or Apple. Powerful but making
questionable innovation moves. Forcing you to use Google+ to improve organic search? Bing is
integrating with every social network which is more natural to users. Thinking their design was superior
only to be trumped by a phone/tablet hybrid? Samsung Galaxy can continue to play disruptor to Apple’s
incumbency.!
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▪ If you don’t disrupt your own business, someone will certainly do it for you. Disruptive innovation is a sport
unto itself and all that matters is the consumer !

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What is Disruptive Innovation?"
The term, coined by Harvard University Professor Clayton Christensen in his book
“The Innovator’s Dilemma” explained the following thesis: !
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• A disruptive innovation initially offers a lower performance according to
what the mainstream market has historically demanded. !
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• At the same time it provides some new performance attributes, which in
turn makes it prosper in a different market. !
• As it improves along the traditional performance parameters it eventually
displaces the former technology. "
• Business that relies heavily on scalable algorithms can be outdone by
smaller companies that push for solving new business mysteries.!
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Why Disruptive Innovation?"
People use products and services for two reasons:!
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• Utility!
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• Identity!
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When thinking about how to disrupt larger competition ask yourself:"
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1. Can we make/offer a lower end product/service that gets people using it for reason
#1?"
2. Will we ultimately then get those who use it to start regularly using it for reason
#2?"
Never try to switch people from #2 onto your product. That’s like asking people who
drive Ferraris to drive a Kia. That’s why Bing will never steal market share from
Google quickly. They need to do it on the long tail using the utility strategy. Same
reason why Windows 8 won’t own mobile right away. You have to again look at the
50% of people who don’t use a smartphone. How do you convert them based on
reason #1? If you try to convert the hipster in Oakland, California from an iPhone to a
Windows phone they never will because of reason #2.!
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THE EXAMPLES"

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Disruptive Innovation Example 1: Transistor Radio"

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Disruptive Innovation Example 2: MP3s"

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Disruptive Innovation Example 3: Steel Minimills"

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Disruptive Innovation Example 4: SaaS"

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Disruptive Innovation Example 5: Ed Specialty Certifications"

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Disruptive Innovation Example 6: Windows 8 Phone"

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Examples to Watch: Smartwatch / Smart Specs"

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DESIGNED TO AID DISRUPTION:
DATA"

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SMBs have the advantage over large infrastructure due to a disruptive technology
in itself: Mobile Phones!
▪ Mobile phones are used by advocates for…!
- Social networking!
- Purchase decision-making!
- Search!
- Word of Mouth (via them posting images and words about business/
purchases)!
▪ Mobile phones SHOULD BE used by businesses for…!
- Community management!
- Thought leadership!
- Paid search!
- Content marketing (to help enhance Word of mouth)!
However, the majority of business is still set up for the MadMen era economy…!
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Mobile is Your New Office, Data System, Marketing Tool"

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Moving Past Don Draper: Data Informs Content Creation"
▪ Listening is your flashlight to inform future content production!
▪ Listening is your analyzer to inform you if your content is working!
▪ Listening is your analysis for individually-tailored content production!
▪ Mobile provides geo targeting capabilities!
▪ SaaS is available in a variety of utilitarian tools ! !
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Marketing is no longer about simply the BIG IDEA, or 100% creative. It is a combination of
creative and analytical, growth hacker and API expert. Design thinking. Producing a TV or
print ad can only go so far. Even acquiring Facebook likes in 2013 is irrelevant. We need to
connect with our audience. SMBs can do this better than Big Goliaths because you can
become the face of your business more than a multi-national. Don’t stand behind your
business, be your business. Act your culture. Paint and experiment at the same time…!
Disrupt Big Business Competition by Disrupting Marketing"

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Thank You"
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: @djgeoffe!
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: futuristlab.tumblr.com!
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: slideshare.net/geoffreycolon!
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