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Morph Labs' Chairman Winston Damarillo talks about product-market dynamics in the technopreneurship space and the importance of great ideas to reach global markets. This presentation was delivered during the 2007 Tech Boot Camp organized by Ayala Foundation.
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Finding the Inflection PointsDiscover that Great Idea to Connect with
your Target Market
Winston Damarillo
Competing with the Giants
Good products by good companies will exceed customer requirements over time
In almost all cases, the disruptor brings to market products with less capabilities
High-end
High-volume
Time
Functionality
Customer
Require
ments
Open Source
Incumbents
Oracle, IBM, BEA
Red Hat, MySQL
Agents of Change
Rapid growth of consumer technology markets
Rise of global competitors
Declining barriers to entry due to outsourcing and
on-demand business models
Rise of MicroISVs
target
market
Harnessing the Net
Community enhanced co-Creation
Open source software and process
Community-generated content (e.g. Wikipedia, MySpace
Iterative Beta (Google)
Real-time global Distribution
Digital downloads
Software as a Service (SaaS)
Aggregators
Worldwide Platform for Promotion
Engines
2-way Web ... Blogs, Forums, Twitter
Win from the Bottom
Create markets through an iterative process
Connect to a global distributed market = Internet
Push small increments out to your customers
Let your product grow organically and let your customers see this
Strategic Differentiation
Low-end disruptive innovations that address overserved customers with a low-cost model
Ex. Linux vs. Microsoft Windows
New-market disruptions that compete vs. non-consumption
“To !and "t among # crowd,
do not build y"r product for #
#1 company.”
Iterative Customer Acquisition
Requires a combination of “seeing” and “acting”
“See” as a process = continuous look-out for disruption
Act to see = engage with prospects to yield key insights on the future
Foster vision plurality = nurture internal diversity, while managing alternatives
Institutionalize the vision = shared by the company as a whole
Stage commitment with iterated actions
Reach out to new networks
S E E
A C T
Modularization of Products
Loosely coupled technology => loosely coupled businesses
Businesses will depend on services that are combined, mixed, matched and re-used
Made to Order like Dell
Collaborative innovation => modular, standardized building blocks that can be assembled on-demand for specific requirements
Applications => Commoditization
Aggregated services on-demand
Service-oriented
Disruption tests
1. Is there a large population who historically have not had the resources to do this thing for themselves, and as a result have gone without it altogether or have needed to pay someone with more expertise to do it for them?
2. Do customers go thru an inconvenient process of accessing the product?
3. Are there customers at the low-end of the market who would be happy to purchase a product with less (but good enough) performance if they could get it a lower price?
4. Is it possible to create a business model that will yield attractive profits at the discount prices required to win the customers at the low end?
5. Is the innovation disruptive to all of the significant incumbent firms in the industry?
- The Innovator’s Solution
Questions?