This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (4 Stages of Disruption) is a 27-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Organizations are constantly trying to innovate and, likewise, all industries will eventually be disrupted, as new products, businesses, and industries emerge.
No industry is safe from Disruption. In a 2017 PwC survey of 1,379 CEOs around the world, 60% said their market has already changed or completely reshaped in the past 5 years and over 75% anticipate they would by 2022.
This presentation discusses the 4 Stages of Disruption. Research has found Innovation that eventually leads to Disruption follows a 4-stage evolution:
1. Disruption of Incumbent
2. Rapid and Linear Evolution
3. Appealing Convergence
4. Complete Reimagination
Understanding this 4-stage model will help us understand what design choices to prioritize and when. At any given time, different products and organizations are likely to be at different stages relative to local end point of Innovation.
Additional topics discussed include Disruptive vs. Incumbent Dynamics, the Consumer Adoption Curve, Endgame Niche Strategies, among others.
This deck also includes slide templates for you to use in your own business presentations.
This PPT provides a comprehensive breakdown of the 4 Stages of Disruption, offering a clear roadmap for navigating the complexities of market changes. It delves into the specific actions and reactions of both disruptors and incumbents at each stage, providing actionable insights for strategic decision-making. The presentation also includes detailed explanations of key concepts such as the Consumer Adoption Curve and Endgame Niche Strategies, equipping you with the tools to anticipate and respond to market shifts effectively.
The deck is designed to be highly practical, featuring slide templates that can be directly incorporated into your own business presentations. This allows you to communicate the nuances of disruption theory to your team or stakeholders with ease. By understanding the dynamics outlined in this presentation, you can better position your organization to either lead or adapt to disruption, ensuring long-term success in an ever-evolving market landscape.
This PPT slide outlines a framework detailing the 4 stages of disruption, focusing on the actions taken by disruptors and the corresponding reactions from incumbents. Each stage is characterized by specific behaviors that define the dynamics of market evolution.
In the first stage, "Disruption of Incumbent," a disruptor introduces a new offering that, while not addressing all market needs, presents a superior solution. The incumbent typically dismisses this innovation, viewing it as irrelevant. This denial reflects a broader reluctance to acknowledge potential existential threats posed by new entrants.
The second stage, "Rapid Linear Evolution," sees the disruptor innovating quickly by enhancing features and capabilities. Here, the disruptor solidifies its value proposition after initial customer feedback. The incumbent begins to recognize the disruptor's offering, comparing it to its own and identifying deficiencies.
In the third stage, "Appealing Convergence," the disruptor targets a broader customer base, particularly those who are slower to adapt. The disruptor learns from past limitations while presenting its offering in a new light. The incumbent, meanwhile, reacts by attempting to integrate some disruptive elements into its existing products, signaling a shift from denial to acknowledgment.
The final stage, "Complete Reimagination," occurs when the disruptor reaches a critical decision point. New market entrants leverage insights from the disruptor's success without fully embracing legacy customers. The incumbent, now lagging, struggles to define its new product in relation to the evolving market landscape.
This framework provides a structured understanding of how disruption unfolds and highlights the importance of recognizing these stages for strategic decision-making. Companies can use this insight to navigate their own responses to market changes effectively.
This PPT slide presents the Disruptive Innovation Model, specifically focusing on the Innovator's Dilemma. It illustrates how established organizations often overlook emerging market segments, leading to their decline. The graph features 2 key trajectories: the Incumbent’s Sustaining Trajectory and the Entrant’s Disruptive Trajectory, plotted against product performance and time.
The upper red line represents the performance improvements of incumbent companies, which tend to focus on high-end market segments where profitability is maximized. As these companies innovate, they inadvertently neglect the lower end of the market, where customer needs may not be met. This creates an opportunity for new entrants, depicted by the lower red line, who target these less profitable segments. These entrants can enhance their offerings and gradually move up-market, potentially challenging the established players.
The accompanying text emphasizes that while incumbents are busy satisfying high-end customers, they miss the chance to address the needs of lower-end customers. This oversight allows new entrants to establish a foothold and eventually disrupt the market dynamics. The slide serves as a cautionary tale for executives, highlighting the importance of recognizing and adapting to shifts in customer demand across different market segments.
Understanding this model is crucial for leaders aiming to maintain relevance in their industries. It underscores the need for vigilance and adaptability in strategy, ensuring that organizations do not become complacent while focusing solely on high-margin opportunities. The insights provided here can guide decision-making processes and strategic planning to avoid the pitfalls of disruption.
This PPT slide outlines Stage 3 of the disruption framework, labeled "Appealing Convergence." At this juncture, the disruptor has penetrated the Early Majority segment of the Consumer Adoption Curve, prompting the incumbent to actively engage in competition. The key action for the disruptor involves broadening its customer base by targeting slower-moving consumers. As the disruptor gains traction, the entire market begins to recognize the new product's capabilities.
The slide highlights that the disruptor is also learning from its own product limitations and is re-evaluating past strategies. This reflection leads to a subtle redefinition of the disruptive offering, suggesting that the disruptor is adapting to market feedback. The incumbent, facing this challenge, may attempt to integrate disruptive features into its existing product line. This strategy aims to capture attention while ensuring minimal disruption to current customers.
A significant risk for the incumbent is the potential failure to appreciate the true value of the disruptor's offerings compared to their own. The slide notes that the incumbent may be leapfrogged by newer technologies, indicating a shift in focus toward the disruptor's installed customer base. As the innovators and early adopters mature, a sense of stability begins to emerge in the market.
This stage is critical for understanding the dynamics between the disruptor and the incumbent. It emphasizes the need for strategic adaptation and awareness of evolving customer perceptions. The insights provided here are essential for any organization looking to navigate the complexities of market disruption effectively.
This PPT slide presents a framework illustrating the 4 stages of disruption within the context of the Consumer Adoption Curve. This model is essential for understanding how a disruptor can effectively capture market share from incumbents. The stages outlined are: Disruption of Incumbent, Rapid and Linear Evolution, Appealing Convergence, and Complete Reimagination.
Each stage corresponds to a phase in the consumer adoption process, which is visually represented alongside the adoption curve. The introduction phase begins with innovators, who make up 2.5% of the market. As the product gains traction, it moves into the growth phase, where early adopters (13.5%) begin to engage. The graph highlights a critical transition point known as "The Chasm," indicating the challenges faced when moving from early adopters to the early majority (34%).
In the maturity phase, the product reaches a broader audience, including late majority (34%) and laggards (16%). The decline phase follows, where market saturation or shifts in consumer preferences can lead to reduced adoption. The note on the side emphasizes that the consumer percentages are illustrative and pertain specifically to the normal distribution of adoption.
This framework serves as a strategic tool for executives to evaluate their positioning in the market and anticipate consumer behavior as they navigate through these stages. Understanding these dynamics can inform decision-making and strategic planning, ensuring that organizations remain agile in the face of disruption.
This PPT slide outlines a framework detailing the 4 stages of disruption that a technology product typically undergoes. It begins with the "Disruption of Incumbent," where a new offering is introduced by a disruptor, often dismissed by established players as insignificant. This stage highlights the initial challenge faced by incumbents in recognizing the potential of emerging innovations.
The second stage, "Rapid and Linear Evolution," illustrates how incumbents respond to the disruptor's offering. They quickly innovate on their existing products, attempting to regain market traction. This phase emphasizes the urgency for incumbents to adapt to changing market dynamics, as they start to see the disruptor gaining foothold.
Next is "Appealing Convergence," where incumbents begin to acknowledge the threat posed by the disruptor. They start integrating disruptive features into their own offerings, leading to a blending of the new and existing products. This convergence is critical, as it represents a shift in strategy for incumbents, who must now compete with a product that has gained significant market acceptance.
The final stage, "Complete Reimagination," signifies the culmination of the disruption process. Here, the fully disruptive innovation is created, fundamentally altering the market landscape. This stage represents a significant transformation, not just for the disruptor, but also for incumbents who must now navigate a new reality.
Understanding this four-stage model is crucial for organizations. It provides insights into prioritizing design choices and strategic decisions throughout the innovation process. Recognizing where a product or organization stands within these stages can inform better decision-making and resource allocation.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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