ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy

Israel Designed International Development 2013

Nava Levy, January 8th 2013, Mizpe Ramon, Israel

 Introduction
 What are disruptive innovations, examples
from the business sector
 How disruptive innovations are / can drive
social change
 Recommendations and Q&A

Introduction
Ludwick Marishane in TED: “Dry Bath”

Definition, example for
disruptive technologies, etc.

“A disruptive innovation is an innovation that
helps create a new market and value
network, and eventually goes on to disrupt
an existing market and value network (over a
few years or decades), displacing an earlier
technology.
The term is used… to describe innovations that
improve a product or service in ways that the
market does not expect, typically first by
designing for a different set of consumers in
the new market and later by lowering prices
in the existing market.”

 Source: Wikipedia

Free Operating Internet subscription
System Service for videos

Inkjet Printers
Digital Camera

Online bookstore
Online digital
Music store
Wireless
Telephony
SaaS
Free long distance
Internet distance calls

Cheaper,
Inferior Technology
Simpler, Smaller
Performance More Convenient
Progression

And so, the
Innovation that But, has other
technology evolves
mainstream attributes, that
and advances in
customers don’t other customers,
market segments
want today due to usually in smaller
and opportunities
their inferior emerging markets,
that are outside of
performance today value
incumbents radar

Performance Target Market

Mainstream customers
Inferior don’t want today
performance
Disruptive >Low-end disruptions
>New-market disruptions
Superior
performance
Sustaining >Incremental Existing & higher tiers
customers do want today
> Discontinuous/
revolutionary/
radical

 Term disruptive technology was
coined by Prof Clayton Christensen
in the 90s

 He then replaced disruptive
technology with the term
disruptive innovation ..

 …because he recognized that it is
the strategy or business model
that the technology enables that
creates the disruptive impact

Example Disruptive Disruptive Disrupted
Innovation Technology Markets

Digital CMOS Image Film &
Photography Sensors Instant
Photography
Digital Camera

1. Inferior performance
2. Cheaper & simpler
3. Technology progression

Example Inferior Cheaper, simpler Technology
Performance smaller, more Progression
convenient
- Low picture -No need to buy & On going
quality develop film improvements e.g.
-Low resolution -Smaller, simpler, in image quality &
-Long shutter instant photos resolution, memory
lag -Cheap: e.g. built in card capacity,
phones thanks to CMOS
- Store many pictures technology, to the
Digital Camera on memory card point of threatening
-Edit & share digital also highest end
photos markets

Key: thermal
Inkjet inkjet Laser
printing technology printers
based on
MEMS using
Inkjet thin-film
Printers resistors to
supply heat
pulse


Example Inferior Cheaper, Technology
Performance simpler, smaller, Progression
more convenient
-Low picture -Smaller, affordable - Going upstream
quality and pricing (although per through on going
resolution: 96- page pricing improvements
dpi output, did customers may pay mainly in picture
not support full more compared laser quality
color pictures printers) - HP has filed over
-Slow: 150 300 patents over the
Inkjet characters per years to support
Printers second these technological
improvements


.com Internet Brick &
retailers mortar
retailers
Online
Bookstore


more convenient
-TTM: waiting -Anywhere anytime - Moving upstream
for book to -Longtail books that through technology
arrive via post are not readily progression and
-Unable to available at innovations and by
browse through bookstores leveraging cloud &
book before big data
buying technologies:
Online -Customer “personalized
Bookstore service recommendation
engine, reviews,
browsing inside a
book, etc.

Brick & mortar
Phase .com retailers Internet retailers
1
Online Bookstore
Downloadable Physical goods
digital goods Internet, sold via Brick &
Phase Kindle, E-Ink, mortar or .com
2 iPod retailers
Kindle, iTunes
eBooks, eMusic
B& M retailers
Digital goods- Internet, DRM, and/or eGoods
as-a-service, streaming retailers not
subscription supporting
Kindle Lending based subscription
Library, Oyster
subscription

Brick & mortar
Phase .com retailers Internet retailers
1
Online Bookstore
Downloadable Physical goods
digital goods Internet, sold via Brick &
Phase Kindle, E-Ink, mortar or .com
2 iPod retailers
Kindle, iTunes
eBooks, eMusic
B& M retailers
Digital goods- Internet, DRM, and/or eGoods
as-a-service, streaming retailers not
Phase
subscription supporting
3 Kindle Lending based subscription
Library, Oyster
subscription

SaaS Multi-tenancy,
(software- cloud On Premise
as-a- computing Software
service)
CRM On
Demand


Example Inferior Cheaper, simpler, Technology
convenient
-Low Integration -Affordable, per -Beginning at the
-Low subscriber pricing low end of the
customization -Accessible anywhere, market: SMBs
-Breadth of anytime
-Moving upstream
Functionality -All you need is a
through technology
- Security browser, no hardware
progression by
concerns or software to install
CRM On -Web based consumer leveraging “the
broad and rich
Demand like user interface
foundation of the
internet”

 The Internet, mobile, semiconductors
and cloud computing are key
infrastructural technologies that are Semiconduc
enabling the disruption of many Mobile
tors
industries

 This is enabled by going to the low
Cloud
end of the market and gradually SaaS
moving upstream through a series of Computing
innovations, eventually displacing
mainstream solutions
Internet
 However, in all of these examples this
“low end of the market” was merely
the bottom of developed markets

*a.k.a “catalytic innovations”
M-Health,
Telemedicine

Solar
VoIP,
Energy,
Mobile
Wind
Comms
Energy Disruptive
Technologies
& Innovations

M-money eLearning,
Micro mLearning,
financing OER

Images of pyramids adapted from Christensen, Hart,
MIT Sloan Management Review , 2002

In the past decade Mostly recently, and accelerating


In the past decade Mostly recently, and accelerating

Mobile Baby

TeleDoc Solar energy
(e.g.Innoafrica)



Wireless Semiconductors: Wireline
Telephony GaAs and CMOS Telephony

Cellular
Phone


convenient
-Low coverage -Mobile -While in the 90s
-Low voice -Caller ID these were cheap
quality -Contacts stored phones for the
-Disconnects -Built-in watch, mass, through
-Radiation camera, digital series of
assistant, etc. improvements in
-Pre paid voice quality,
coverage, etc.
moved upstream
cannibalizing
Cellular wireline telephony
at first for voice and
Phone then data

Grameen Village Phone Today

• A decade ago more than 3 Billion • Mobile phone use in developing
people still lacked reliable countries surpassed that of
telephone service, however developed areas
Repackaging technology

mobile phones still too expensive • In Africa, mobile subscribers
for BoP grew from 25M in 2001 to 650M
• So instead, Grameen bank gave • Mobile apps empower individuals
loans to lady entrepreneurs in users enrich their lifestyles and
rural Bangladesh to buy phone livelihoods, and boost the
and resell it to villagers economy as a whole.
• Result:
• Lifting from poverty the lady
entrepreneurs, with money
spent mainly on health &
education for kids
• Positive financial impact of
service to customers, with value
of each call of up to 10% of
monthly income

Sources of images: Word Bank


Leveraging Internet & Wiki Printed and
OpenSource & Technology digital paid
Crowdsourcing (MediaWiki) encyclopedia
over the Internet
to generate high
quality free
encyclopedia


convenient
-Breadth -Free -Technology
-Reliability and -Accessible anywhere, progression solved
accuracy all you need is a technical issues
-Images browser such as uptime and
-Always up to date adding images
-Searchable
- With time and the
-Multi languages
power of
crowdsourcing
reliability improved
and breadth
surpassed
mainstream
Encyclopedia

The Challenge The Solution

• No available •“For many other cultures,
encyclopedia in many in which there are no
strong commercial
cultures / languages
incentives to create
in developing encyclopedia, Wikipedia is
countries - the only comprehensive
commercial or encyclopedia available at
otherwise all. Therefore, the impact
of Wikipedia has been
more revolutionary and
crucial for those cultures
in the “long tail” of the
languages list.”
Source: The Wikipedia Revolution


• No available •“For many other cultures,
encyclopedia in many in which there are no
strong commercial
cultures / languages
incentives to create
in developing encyclopedia, Wikipedia is
countries - the only comprehensive
commercial or encyclopedia available at
otherwise all. Therefore, the impact
of Wikipedia has been
more revolutionary and
crucial for those cultures
in the “long tail” of the
languages list.”
Source: The Wikipedia Revolution

Note:
•While progress has been made the full impact on BoP is yet to be realized.
•Among the “packaging challenges” are the ability of the local community to
contribute as well as ability to access & edit via mobile phones.


Solar Semiconductors, Grid
Energy – Solar electricity
sustainable photovoltaics
off grid
Solar solution for
Panels energy


convenient
-Availability: -Clean, safe energy - Gradual efficiency
daytime, sunny -Relatively mobile improvements
-Storing energy -No need for grid leading to grid
-Upkeep is costly infrastructure parity and beyond
-Modular, add more as (2020 for the whole
you need of Europe, Italy
already by 2013)

Solar Panels


•In 2002, there were 2 billion • Clean renewable off grid
people living without solutions such as solar energy
• In addition to light at night,
electricity, half of them in
provides necessary electricity to
Africa
power water pumps and cool
•In these poor rural areas no vaccines
grid system exists • Repackaging for BoP:
•30% of income spent on • Bring the knowhow and train
candles, kerosene and the community and its leaders
diesels as alternative • Set up a business to cover
maintenance costs (recharge
– dangerous, expensive and
mobile phones business)
polluting alternative
• As a result, number of people
living without electricity down to
1.3 billion.

Source: Adapted from Innoafrica


Skin lotion Germicidal Bath- Bathing soap,
made to substituting™ skin gel; Baths and
substitute lotion/gel. showers
bathing,
packaged in
Dry Bath small per bath
packs.


more convenient
-The pleasure of -No need for water - Moving upstream
using warm water or bath from waterless hygiene
-Requires a -Mobile, available solution to the poor to
change of mindset anywhere, anytime a bathing-alternative to
of what clean -TTM – quicker more affluent
means -Modular, pay per - Added moisturizers,
use (bath) model and in the future we
-Eco friendly may see other addition
like sun screen,
Dry Bath vitamins (e.g. D), etc.
-Targeting upstream
markets as airlines,
armies, hotels, lazy
teenagers…
-Other potential: Gyms
at work, for long treks

•Dry bath for cleanliness &
•2.5 billion people globally
convenience
do not have proper access
•Saves 2 hours a day and
to water and sanitation
800 liters in water

•As a result, over 2 million
people suffer and often die
from easily treatable
diseases like trachoma and
diarrhoea

•Dry bath for cleanliness &
•2.5 billion people globally
convenience
do not have proper access
•Saves 2 hours a day and
to water and sanitation
800 liters in water

•As a result, over 2 million
people suffer and often die
from easily treatable
diseases like trachoma and
diarrhoea

Was made possible thanks to the “flattening of the
world”, local entrepreneur access to knowhow and
resources made possible by the internet (Google,
Wikipedia), mobile access and NGOs.

Definition:  Examples for potential
According to Gartner, Big Data is
becoming a metaphor for:
applications:
1. Increasing volumes of info
2. Finding info in previously  - Achieving double bottom line
ignored or new data types
by analyzing and /or selling
3. Hadoop and MapReduce `
the tons of data generated via
mobile apps
Similar to the Internet, SaaS, Cloud and
CrowdSourcing, Big Data, or “analytics in the
cloud” has the potential to become one of
the biggest disruptors
 - With Big Data, financial apps
can reach the BoP by analyzing
Though Big Data is only beginning, biggest many types of market signals
winners will be pioneers focusing on BoP and data and achieving finer
customers segmentations

Corporate Social
Social Entrepreneur
Responsibility Officer

“Doing well while doing good” – high growth “Doing well while doing good” – high growth
“Doing wellsegmentsdoing good”
profitable
while – high growth profitablesegments
profitable
segments

Moving Upstream to more lucrative markets: Gradually moving upstream to more lucrative
Gradually moving upstream to more lucrative Through a series of sustaining
innovations, gradually moving upstream to more lucrative segments eventually
segments eventually displacing mainstream segments eventually displacing mainstream
displacing mainstream solution at the top of the pyramid.the pyramid
solution at the top of the pyramid solution at the top of

Blue ocean: often no need to Defense: Necessary defensive
compete head to head with measure against threat to
incumbents playing in the mainstream business from
developed countries disruption from below

Corporate Social
Social
NGO Responsibility
Entrepreneur
Officer
Look for innovation that are: 2. Cheaper & simpler

Partner with Social Make sure to package and Good candidates: any
Look to target disruptive innovations that are leveraging one of
Entrepreneurs & adapt technology in a way innovation the company
the key infrastructure technologies: Internet, SaaS, Cloud,
innovators targeting that fits developing is addressing at the base
Semicon, Mobile, Crowd Sourcing, Open Source and Big Data
disruptive innovations countries circumstances of the top of the pyramid

Promote innovations and Make sure to package and Good candidates: any
models that are self adapt technology in a way innovation the company is
sufficient and avoid that fits developing addressing at the base of the
injecting “bad aid” countries circumstances top of the pyramid

 Most established companies fail in commercializing disruptive
innovations. To succeed, established vendors need to:

• Start early and before mainstream
Timing business been affected
•Will be achieved by addressing the BoP

• Dedicate an autonomous organization with
Organization size and cost structure appropriate for the
opportunity today

• Treat it as both a threat and an opportunity
Approach in a new and emerging market

Christensen, et al HBR, 12/2006

Christensen, Hart, MIT Sloan
Management Review, Fall 2002.

Thank You 

Levy.nava@gmail.com

ID2 2013 - Harnessing the Power of Disruptive Technologies to Drive Social Change by Nava Levy

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