Disruption
Investment Horizon
Disruption is about reinventing the company and possibly even replacing the current products.
Investment Horizons: Maintenance • Improvement • Extension • Disruption
Purpose
Disruption (or Horizon 3) is about reinventing the company and possibly even replacing current products.
Horizon 3 contains ideas for profitable growth down the road—for instance, small ventures such as research projects, pilot programs, or minority stakes in new businesses.
Horizon 3 is brimming with ideas that hold promise for long-term profitability but could still be in their infancy. Examples include experimental research projects, trial programs, or even acquiring a stake in a promising new venture. A key aspect is that these ideas are disruptive to the current core value streams. While the ideas might seem minor now, with the right nurturing and guidance, they could evolve into a complete reinvention of a business itself.
Notes
The four focus areas in the unFIX model allow you to annotate your organization design to clarify what happens where. Which teams are responsible for Maintenance and Improvement? Where does Extension take place in the company? And does management give sufficient attention to Disruption in the same Base, or do you expect other Bases to take care of this?
Rules / Constraints
It is usually best not to mix Disruption with other investment horizons. Those who work on disruptive innovations should not also have to worry about “Business As Usual”.
“The biggest risk of all is not taking one.”
(Source: Mellody Hobson)