Digital Disruption: Unleashing The

Next Wave of Innovation

James L. McQuivey, Ph.D.

Vice President, Principal Analyst

@jmcquivey

October 2014 | Prepared for Delight 2014

© 2013 Forrester Research, Inc. Reproduction Prohibited 2© 2013 Forrester Research, Inc. Reproduction Prohibited

Disruption is accelerating

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What used to stop digital disruption

1 People will never do that

2 It will cost too much to do

1We don’t know how to disrupt

ourselves

Digital disruptors are better, stronger, faster

› They will build Better product experiences

› That create Stronger customer

relationships

› Bringing it all to market Faster

Everyone in every profession can – and must – do this, too

Faster

Better

Stronger

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How digital disruption economics work

Old disruption Digital disruption

10 xthe innovators

1/10ththe cost

100Xthe power

Source: October 27, 2011, “The Disruptor’s Handbook” Forrester report

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Step 2: Generate more ideas more quicklyBY INNOVATING THE ADJACENT POSSIBLE

?

Don’t build the future; build the next thing

people really need and let the future find you.

Step 3: Deliver total product experiences

Total product experiences go beyond

traditional boundaries — onto new

platforms, during new moments,

leading to deeper, more measurable

customer engagement and satisfaction

Mirror, Mirror on the wall…Digital relationships extend the product experience

Eyes Hair

Lips Skin

Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

Mirror, Mirror on the wall…Digital relationships extend the product experience

Eyes Hair

Lips Skin

Call

Kerry

Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

Mirror, Mirror on the wall…Digital relationships extend the product experience

Eyes Hair

Lips Skin

Call

Kerry

Image source: August 4, 2011, “Innovating The Adjacent Possible” Forrester report

For which companies is the Magic Mirror an adjacent product experience?

› Media companies have the content

› Retailers sell the products

› Manufacturers want the customer loyalty

› Platforms want to enable all of it

Whoever holds the customer

relationship…whoever consistently

delights the customer will win

What will those experiences look like?Someday… Today

There are dozens of experience

points to design here – some to

invent completely

The disruptor will get there first

› See the consumer need today

› Comprehend the experience in today’s context

› Foresee how it will expand in the future

› Design today with that “next” consumer in mind

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P

S

E

The spoils will go to those who can disrupt – the experience, the productYOU MUST HAVE A DISRUPTOR’S:

nergy

kills

olicies

We conducted a global survey of executives

to see if they are ready.

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People see digital coming but aren’t ready for it

PERCENT THAT AGREE WITH EACH STATEMENT (TOP-2 BOX)

89%

65%

38%

32%

There is significant opportunity for digitaltools and experiences to change the

industry we serve

People in our company are excited aboutthe changes that digital will bring to our

company

People in our company have the skillsneeded to adapt to the changes that digital

will bring to our company

Our company has policies and businesspractices that will enable us to adapt to the

changes that digital will bring to ourcompany

Source: June 2012 Digital Readiness Assessment

Detailed analysis in new report, Assess Your Digital Disruption Readiness Now, March 2013

P

S

E

49%

24%

Release the disruptor within

Thank you

#digitaldisruption

James L. McQuivey, Ph.D.

VP, Principal Analyst

@jmcquivey