Unveiling the Customer Value Chain: Startups vs Established Companies in Digital Disruption

Unlocking the secrets of digital disruption: how understanding customer value chains can help small startups outmaneuver big established companies in today's rapidly changing market.

1. Netflix didn't invent streaming technology; Reed Hastings realized people wanted more convenience in watching content.
2. The book "Unlocking the Customer Value Chain" by Thales Teixeira explains how startups disrupt large companies and vice versa.
3. Customer Value Chain: series of activities or steps consumers need to do to acquire, use, and dispose of products (e.g., awareness, passive comparison, active comparisons, purchasing, using, dispos
4. Digital Disruption: characterized by big established companies losing a sizable market share in less than 15 years due to new technologies.
5. Customer-centric approach vs company-centric approach: customers have become more powerful as they have many options; companies must adapt and understand customer needs.
6. Startups focus on what customers are unhappy about and change their behavior, building a business around satisfying new needs and wants.
7. Decoupling: breaking apart activities in the customer value chain, often by startups or disruptors who perform better than established companies.
8. Examples of digital disruption: Boeing, IBM, BMW, Mercedes losing market share quickly due to new technologies.
9. Three phases of business model innovation: unbundling (selling pieces of a product), disintermediation (going directly to the consumer), and decoupling (breaking the customer value chain).
10. AI could be a wave of disruption, but it requires companies to understand what customers are unhappy doing today and create a business model that benefits both parties.
11. Three types of decoupling: Value-Creation Decoupling (doing an activity creates value), Value-Capturing Decoupling (eliminating/reducing a value capture activity), and Value-Eroding Decoupling (el
12. An innovative business model is more important than having highly developed technology, as customers choose which technologies to adopt.
13. Startups have an edge in disruption because they start with nothing and focus on acquiring customers by creating value.
14. Recipe for decoupling: map out the customer value chain, identify weak links, determine the type of activity to break (value-creating, capturing, or eroding), increase specialization forces, and p
15. Observe customers in what they're doing instead of relying on surveys to understand their problems.
16. Use data and signals to identify customer unhappiness in specific activities.
17. Customers may not always know or express their true needs, so it's crucial to observe their actions closely.
18. Companies must adapt to the changing balance of power between companies and customers.
19. In many industries, there are a dozen brands vying for customer attention; this means customers have more options and are more powerful.
20. The key driver behind digital disruption is not technology itself but rather how customers interact with technology and their needs/wants.
21. Decoupling allows startups to focus on specific activities in the customer value chain, potentially creating a superior user experience.
22. Companies can create a business model that takes advantage of decoupling, providing value for both the company and its customers.
23. The three phases of business model innovation (unbundling, disintermediation, and decoupling) have different implications for companies, but they all involve breaking apart traditional business pr
24. AI may be a wave of disruption in the future if it can create value that customers adopt, rather than technology being adopted due to hype or initial interest.

Source: EO via YouTube

❓ What do you think? What are your thoughts on the ideas shared in this video? Feel free to share your thoughts in the comments!