AbayomiBaiyere&

JasparRoos

Disruptive Innovation at the Bottom of the Pyramid

Image: wisemarketing.files.wordpress.com

Trends and Future of Sustainable Development9-10 June 2011, Tampere Finland

Introduction: Disruptive Innovation [ DI ]

Image: http://www.lawgazette.co.uk

Introduction

Objectives

Methodology

Leading Company

DIBOP Research

Disruptive Innovation

Conclusion

Results

Introduction Bottom of the Pyramid [BOP ]

Introduction

Objectives

Methodology

4000 MPeople

DIBOP Research

Conclusion

Results

75–100 M

[BOP]

TOP

Less than $4 per day

$55+ per day

The Curiousity. [ DIBOP ]

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Conclusion

What?

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Can DI occur at BOP? Can DIBOP

impact sustainability

of top companies?

How should DIBOPs be dealt with?

How?

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Prior Research

Interviews

Simulation

Clarifying Basics. Innovations

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

•.Radical

•.Discontinuous

•.Disruptive MarketSimple

Non Mainstream/www.computerservicestoronto.com/

Telephone, Light Bulb

Mobile phone, Inkjet printer

Clarifying Basics. BOP Redefined

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Global

•.Regional

B2BSME

Fortune 500

BOP

BOP

BOP

Traditional BOP

BOP

How? Contd. DIBOP Simulation

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Agent Based Modelling

DIBOP Simulation

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

www.justdotdot.com/dibop/dibop.html

Contribution: Mathematical Model

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

DI = Disruptive innovation

I = innovationNE = New Entrant

= factor of disruptiveness

Contribution: Scenario Model

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Low Innovation

High Innovation

BOP FocusTOP Focus only

Contribution: Theory Proposition I

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

The impact of a DI is independent of its region of occurrence, but is limited by the spread of the industry it disrupts.

Industry

Contribution: Theory Proposition II

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

The level of DIBOP occurrences can influence the gap between companies at the TOP and the BOP.

Contribution: Role of IT

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

IT capabilities not just for today but for tomorrow.

"There's a way to do it better—find it."— Thomas Edison

Image: www.computerservicestoronto.com

Contribution: Disrupted Disruptions

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

stepping stones to the core disruption. Minicomputer to PC

…snuffed out early by competitors likely to be disrupted.

Not Igno

red -

Shell

Alt. en

ergy

Slow Velo

city

N

okia

Inter

net o

f Thin

gsCom

petito

rs

Micr

osof

t

Offic

e Liv

eNon M

ainstream G

oogle

ads

Contribution: Why DI’s are Ignored.

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

The mystery of listening to customers

The pit of financial projections

Image: http://joi.org/

Research Answers

Introduction

Objectives

Methodology

DIBOP Research

Conclusion

Results

Can DI occur at BOP?

Can DIBOP have impact on top companies?

How should DIBOPs be dealt with?

Yes

Yes

..not because it is DIBOP but because it is a DI

AmbidextrousOrganization

Business Model Rethinking

Portfolio Diversification

Abayomi Baiyere

Disruptive Innovation at the Bottom of the Pyramid

Image: wisemarketing.files.wordpress.com

Thank You!