{"id":1361,"date":"2017-08-31T06:00:00","date_gmt":"2017-08-31T13:00:00","guid":{"rendered":"https:\/\/blogs.plm.automation.siemens.com\/t5\/Digital-Transformations\/Disruptive-innovation-and-your-future-business\/ba-p\/429839"},"modified":"2026-03-26T11:58:21","modified_gmt":"2026-03-26T15:58:21","slug":"disruptive-innovation-and-your-future-business","status":"publish","type":"post","link":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/disruptive-innovation-and-your-future-business\/","title":{"rendered":"Disruptive innovation and your future business"},"content":{"rendered":"<p><P>I recently heard this incredible story about leatherback turtles.<\/P><\/p>\n<p><P>There are certain leatherbacks in Gabon, Africa that swim all the way across the Atlantic Ocean to feed off the coast of Brazil. Then, they swim all the way back to breed and nest in Africa. It\u2019s a round-trip journey of over 6,500 kilometers, or 10,000 miles. These turtles make this trek many times over their 50-year lifespan.<\/P><\/p>\n<p><P>It\u2019s truly one of nature\u2019s most amazing feats. But there are plenty of food sources right off of the coast of Africa; the leatherbacks don\u2019t have to make this long, painful trip. In fact, studies show that the journey is putting the Atlantic leatherback population in danger of extinction. More and more leatherbacks are getting caught in fishing nets and falling victims to human commerce.<\/P><\/p>\n<p><P>So why do they do it? Why does the leatherback swim 6,500 kilometers time and time again to feed and breed \u2014 when it could swim a few kilometers, minimize its risk of danger and thrive as a species?&nbsp;<\/P><\/p>\n<p><P>There\u2019s a leading theory on why the leatherbacks make <a href=\"https:\/\/www.theguardian.com\/science\/2011\/jan\/05\/leatherback-turtles-atlantic-journeys\" target=\"_self\" rel=\"nofollow noopener noreferrer\">their long, strange trip<\/A>.<\/P><\/p>\n<p><P>Scientists believe they began doing it eons ago, when South America and Africa were locked together. Back then, only a river might have separated the continents, and the turtles could easily swim back and forth between banks.<\/P><\/p>\n<p><P>As the continents began drifting apart, the river widened by about an inch per year. The distance was imperceptible to the turtles. So, they kept going to the same spot at the far bank of the river, each generation swimming a tiny bit farther than the last.<\/P><\/p>\n<p><P>Fast forward a hundred million years, and the river had become an ocean. The turtles never noticed.<\/P><br \/>\n<P>That theory is almost more amazing to me than the journey of the leatherbacks themselves. It got me wondering: would the turtles have decided not to make the swim if the change was more dramatic? How big would that change need to be? A meter? 10 meters? A kilometer?<\/P><\/p>\n<p><P>At some distance, presumably, the change between one year and the next would\u2019ve been so wide that\u2014even as hard-wired as they were to reach the other side of that ancient river\u2014they might\u2019ve paused and considered another way.<\/P><\/p>\n<p><H3>Disruptive innovation and technology<\/H3><br \/>\n<P>I realized this story applies to our work as innovators. I wonder how many companies are out there today, facing the same circumstances with disruptive innovation or disruptive technology.<\/P><\/p>\n<p><P>Business is moving faster than the continents that drifted apart. We\u2019ve known for decades that <a href=\"https:\/\/blogs.plm.automation.siemens.com\/t5\/Digital-Transformations\/Video-Industry-4-0-and-the-Digital-Enterprise\/ba-p\/344004\" target=\"_self\" rel=\"noopener noreferrer\">the pace of change is rapidly increasing<\/A>. Still, companies seem to get caught flat-footed by change\u2014and they continue approaching problems the same way\u2026all the way to extinction. Think about Kodak in the camera business, or bookstores around the world.<\/P><\/p>\n<p><P>Even major automakers are starting to feel the creeping dangers of change. Many automakers, like <a href=\"https:\/\/www.forbes.com\/sites\/alanohnsman\/2017\/02\/17\/gm-may-soon-have-thousands-of-self-driving-electric-bolts-in-lyft-test-fleet\/\" target=\"_self\" rel=\"nofollow noopener noreferrer\">GM with its Lyft business<\/A>, are starting to do something about it. But just as many aren\u2019t doing enough.<\/P><\/p>\n<p><P>It\u2019s not that these companies are standing still: they\u2019re making small, incremental changes to adapt. They\u2019re probably doing all of their design with CAD tools and leveraging simulation and manufacturing software, and they have some system to manage all their product data.<\/P><\/p>\n<p><P>I\u2019m sure leatherbacks evolved in small ways too\u2014they got bigger and stronger, and they changed anatomically to swim farther. But they never truly changed their behavior. They never disrupted their routine. How many companies are in this same boat?&nbsp;<\/P><\/p>\n<p><H3>Embracing disruptive innovation<\/H3><br \/>\n<P>In the last year or so, we\u2019ve seen more and more companies trying to break out of this mold, consciously working to change their innovation culture and to learn from that disruptive technology. And it\u2019s all because of digitalization.<\/P><\/p>\n<p><P>Digitalization is changing everything, and in every industry. Companies are getting a sense of urgency to change. They know, they either digitalize their businesses, or\u2014like the leatherback\u2014it will be harder and harder to make the disruptive innovation journey.&nbsp;<span class=\"lia-inline-image-display-wrapper lia-image-align-center\" style=\"width: 400px;\"><img decoding=\"async\" src=\"http:\/\/blogs.sw.siemens.com\/wp-content\/uploads\/sites\/19\/2019\/09\/Disruptive-Innovation_2-1.jpeg\" alt=\"Disruptive Innovation_2.jpeg\" title=\"Disruptive Innovation_2.jpeg\" \/><span class=\"lia-inline-image-caption\" onclick=\"event.preventDefault();\">If companies want to survive the market upheaval digitalization is causing, they must begin embracing disruptive innovation.<\/span><\/span><\/P><br \/>\n<P>Accenture observed that since 2000, <a href=\"http:\/\/www.aei.org\/publication\/fortune-500-firms-1955-v-2016-only-12-remain-thanks-to-the-creative-destruction-that-fuels-economic-prosperity\/\" target=\"_self\" rel=\"nofollow noopener noreferrer\">52 percent of the companies<\/A> in the Fortune 500 have either gone bankrupt, been acquired, vanished or dropped out of the Fortune 500 \u2013 quite the dramatic change for two decades. Digital transformation is a primary factor in this outcome.<\/P><\/p>\n<p><P>We have already seen entire industries transform or disappear. Think about music, photography, on-line shopping or even transportation. The primary reason these companies fail is that they are not leveraging digital, disruptive technology across the business and focusing on siloed upgrades. They think that by digitizing existing processes and squeezing small efficiencies out of them, they\u2019ll keep pace with change.<\/P><\/p>\n<p><P>This type of digitization is not the same as digitalization. The big benefit comes when you look at your entire process, create a digitalization strategy and remove the weakest links so you can begin your disruptive innovation.<\/P><\/p>\n<p><P>In every phase of innovation\u2014from the creation of the idea to its production and then the customer\u2019s experience\u2013 there are digital forces that are transforming the way companies do business.<\/P><\/p>\n<p><P>And Siemens is <a href=\"https:\/\/blogs.plm.automation.siemens.com\/t5\/Digital-Transformations\/Why-Siemens-continues-to-be-one-step-ahead-of-Industry-4-0\/ba-p\/347586\" target=\"_self\" rel=\"noopener noreferrer\">at the forefront<\/A> of this transformation.&nbsp;<\/P><\/p>\n<p><P><STRONG>About the author <\/STRONG><BR \/><STRONG>Bob Jones<\/STRONG> <EM>is the Executive Vice President of Global Sales, Marketing and Services for Siemens PLM Software. He and his team are responsible for the company\u2019s sales, marketing and service delivery on a global basis. He partners with Siemens PLM Software\u2019s zone sales leaders to target geographic, industry and strategic corporate opportunities. Throughout his Siemens career, Jones has held a number of leadership roles in sales and marketing. Before his current position, Jones was the senior vice president and managing director of the Americas and was responsible for sales, sales support and services delivery in North and South America. He has also led sales, sales support and services delivery for the company\u2019s U.S. organization and the company\u2019s global General Motors account. His responsibilities have also included direct and indirect sales and marketing strategies for the PLM portfolio to the automotive OEM and supplier industry. Before joining Siemens PLM as an account executive, Robert began his career in product development at Johnson Controls, Automotive Systems Group (JCI\/ASG), where he was a chief engineer responsible for mechanism programs to OEMs in America, Asia and Europe. Jones has a master&#8217;s degree in Mechanical Engineering from Virginia Polytechnic University and a bachelor&#8217;s degree in Mechanical Engineering from Western Michigan University.<\/EM><\/P><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I recently heard this incredible story about leatherback turtles. <\/p>\n<p> There are certain leatherbacks in Gabon, Africa that swim all the way across the Atlantic Ocean to feed off the coast of B&#8230;<\/p>\n","protected":false},"author":32586,"featured_media":1365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spanish_translation":"","french_translation":"","german_translation":"","italian_translation":"","polish_translation":"","japanese_translation":"","chinese_translation":"","footnotes":""},"categories":[1],"tags":[2],"industry":[],"product":[],"coauthors":[],"class_list":["post-1361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-digitalization"],"featured_image_url":"https:\/\/blogs.sw.siemens.com\/wp-content\/uploads\/sites\/19\/2019\/09\/Disruptive-Innovation_2-1.jpeg","_links":{"self":[{"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/posts\/1361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/users\/32586"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/comments?post=1361"}],"version-history":[{"count":2,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/posts\/1361\/revisions"}],"predecessor-version":[{"id":1366,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/posts\/1361\/revisions\/1366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/media\/1365"}],"wp:attachment":[{"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/media?parent=1361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/categories?post=1361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/tags?post=1361"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/industry?post=1361"},{"taxonomy":"product","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/product?post=1361"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/thought-leadership\/wp-json\/wp\/v2\/coauthors?post=1361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}