Design2Disrupt Summit: Joseph Pine - Destructive Recreation
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The document discusses how businesses must now stage experiences, mass customize offerings, fuse the real with the virtual, and adopt a way of managing with the intent to vitalize the enterprise in order to withstand "creative destruction" and survive in evolving markets. It also emphasizes that enterprises must constantly destructively recreate themselves through innovation in order to stay ahead of competitors and create greater value.
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Design2Disrupt Summit: Joseph Pine - Destructive Recreation
- 1. Destructive Recreation © 2014 Strategic Horizons LLP B. Joseph Pine II Strategic Horizons LLP bjp2@StrategicHorizons.com @joepine
- 2. Economies evolve, produce wealth, and remain vital when the process of ever-changing markets, offerings, and enterprises “incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” “This process of Creative Destruction is the essential fact about capitalism.” Source: Joseph A. Schumpeter, Capitalism, Socialism, & Democracy, Third Edition (New York: Harper Perennial, 1950), pp. 81-86.
- 3. Destructive Recreation We used to think. . . ∞ goods and services were enough © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations
- 4. The Progression of Economic Value Transformations Guide © 2011 Strategic Horizons LLP Experiences Stage Services Deliver Customization Goods Make Customization Customization Commoditization Commoditization Commodities Commoditization Extract
- 5. Destructive Recreation We used to think. . . ∞ goods and services were enough © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations
- 6. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings
- 7. The Old Competitive Reality © 1993 Strategic Horizons LLP Invention Develop Mass Production Dynamic Product Change Stable Product Change Dynamic Process Change Stable Process Change Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
- 8. The New Competitive Reality Dynamic Mass Customization Develop Mass Production Stable Invention Modularize Continuous Improvement Dynamic Renew Link Process Change Offering Change Stable © 1993 Strategic Horizons LLP Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
- 9. The New Competitive Reality Dynamic Mass Customization Develop Mass Production Stable Invention Modularize Continuous Improvement Dynamic Renew Link Process Change Offering Change Stable © 1993 Strategic Horizons LLP Source: Bart Victor, Andrew C. Boynton, and B. Joseph Pine II
- 10. The Progression of Economic Value Extract Individualization Transformations Guide © 2011 Strategic Horizons LLP Experiences Stage Services Deliver Customization Goods Make Customization Customization Commoditization Commoditization Commodities Commoditization
- 11. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings
- 12. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ embrace digital technology
- 13. The Known Universe No-Space (Virtual Places) (Digital Substances) (Autonomous Events) (Material Substances) (Real Places) (Actual Events) No-Matter No-Time Matter Time Space © 2011 Strategic Horizons LLP
- 14. No-Space (Virtual Places) (Digital Substances) (Autonomous Events) (Material Substances) (Real Places) (Actual Events) No-Matter No-Time Matter Time Space © 2011 Strategic Horizons LLP The Multiverse
- 15. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ embrace digital technology
- 16. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ fuse the real with the virtual
- 17. No-Space (Virtual Places) (Digital Substances) © 2014 Strategic Horizons LLP (Autonomous Events) (Material Substances) (Real Places) (Actual Events) No-Matter No-Time Matter Time Space The Multiverse
- 18. Destructive Recreation We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ fuse the real with the virtual
- 19. We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage ∞ the way to manage was to optimize the enterprise © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ fuse the real with the virtual ∞ adopt a way of managing with the intent to vitalize the enterprise © 2014 Create Advantage, Inc. Destructive Recreation
- 20. To withstand the Schumpeterian gale of creative destruction, the enterprise must be “destructively recreating itself over and over again by innovating within the enterprise at least as much as is going on in its ecosystems. Anything less and the enterprise will eventually get blown over by others moving faster, operating better, and creating greater value.” Source: Kim C. Korn & B. Joseph Pine II, The Laws of Managing (Indianapolis: Dog Ear Publishing, 2014), p. 47.
- 21. Enterprise Vitality Relative to its Ecosystems Enterprise Trajectories + Thriving Failing Leading Creative Destruction Trailing Creative Destruction Regenerative Trajectory Degenerative Trajectories Ambient Level © 2014 Create Advantage, Inc. -
- 22. The Law of Vitality Only the enterprise that attains vitality, through its incessant destructive recreation, produces the wealth necessary to survive. Source: Kim C. Korn & B. Joseph Pine II, The Laws of Managing (Indianapolis: Dog Ear Publishing, 2014), p. 47.
- 23. Ecosystems Enterprise CREATION DESTRUCTION CREATION DESTRUCTION © 2014 Create Advantage, Inc. Destructive Recreation
- 24. We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage ∞ the way to manage was to optimize the enterprise © 2014 Strategic Horizons LLP Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ fuse the real with the virtual ∞ adopt a way of managing with the intent to vitalize the enterprise © 2014 Create Advantage, Inc. Destructive Recreation
- 25. We used to think. . . ∞ goods and services were enough ∞ we could invent great products & mass produce them for years ∞ materiality conferred advantage ∞ the way to manage was to optimize the enterprise © 2014 Strategic Horizons LLP Destructive Recreation Now we must. . . ∞ stage experiences and guide transformations ∞ mass customize & constantly renew our offerings ∞ fuse the real with the virtual ∞ adopt a way of managing with the intent to vitalize the enterprise © 2014 Create Advantage, Inc.
- 26. Destructive Recreation © 2014 Strategic Horizons LLP B. Joseph Pine II Strategic Horizons LLP bjp2@StrategicHorizons.com @joepine