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Due to the different dynamics required for organizations to serve the emerging market which contains billions of people at the bottom of the pyramid (BOP) coupled with the increasing desire for organizations to grow and be more multinational, organizations need to continually innovate. However, the tendency for large and established companies to ignore the BOP market and rather focus on existing markets, gives an indication of the existence of a vulnerability that potentially disruptive innovations from the BOP will not be recognized in good time for a counter measure. This can be deduced from the fact that good management practice advocates that managers should learn and listen to their customers. Therefore majority of the large existing companies continually focus on their main customer/market with sustaining innovations which leaves aspiring new entrants with an under-served BOP market to experiment with.
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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
Twitter: @speak2ab
@jasparroos
Introduction: Disruptive Innovation [ DI ]
Image: http://www.lawgazette.co.uk
Introduction
Objectives
Methodology
Leading Company
DIBOP Research
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
How? DIBOP Simulation
Introduction
Objectives
Methodology
DIBOP Research
Conclusion
Results
To run the simulation visit: http://goo.gl/jII1h
How? DIBOP Simulation
Introduction
Objectives
Methodology
DIBOP Research
Conclusion
Results
To run the simulation visit: http://goo.gl/jII1h
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 Ignore
d - S
hell
Alt. en
ergy
Slow V
elocit
y
Nok
ia
Inte
rnet
of T
hings
Com
petit
ors
Mic
roso
ft
Offi
ce L
ive
Non Mainstr
eam Google
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
Disruptive Innovation at the Bottom of the Pyramid
Image: wisemarketing.files.wordpress.com
Thank You!
Abayomi Baiyere&
Jaspar RoosFor a related blog post visit: http://goo.gl/ylP26
For the full research paper visit: http://goo.gl/u9JKU Twitter:
@speak2ab @jasparroos
