its operation when new technology makes a process that used to be expensive and hard to deploy

_easy to deploy_

and virtually

_free_

.

An established enterprise must re-engineer

, or play catch-up. Be the disruptor or the disrupted.

The decision is whether to catch the first wave

\(supply chain, distribution, a customer base\) are all things that a start-up would kill for. The challenge is to aligned those things to support a re-engineered operation.

The capabilities of established companies

Performance \(core business thats making the money today\), Productivity \(non-revenue making areas such as finance, IT, legal\), Incubation \(start-up zone to create options on future business or future business methods\).

There are three zones of investment that exist in most companies already:

A transformation zone which takes on the challenge of going against the inertial momentum of the organisation. Its a very painful change because there is a period where you go backwards before you go forwards.

A fourth zone needs to be created.

, and make companies a lot more valuable. Apple created three transformations in a decade, and went from being almost bankrupt to being the most valuable company in the world at one point.

Transformation zones can create a whole new earnings engine

, the financial community adds another row to their valuation spreadsheet. When it gets to 10% of revenue it is no longer a footnote, it has to be added to their valuation model. Company valuations soar as a result.

When you add a new earnings engine

can be used to modernise the existing business or improve productivity. Only one innovation can be moved to the transformation zone at any time.

Innovations in the incubation zone

, around 3 years, before it is scaled enough to move to the performance zone.

The transformation zone only lasts for the length of the transformation

There is a three step programme to set into motion in this case: Neutralise, Optimise and Differentiate. You cant drift.

Being disrupted? Most companies are in the category of being disrupted.

is to first incubate the new technology yourself by using it internally in the productivity zone. Youre not exposing it to customers, but using it to save money in-house while learning about the capabilities. You are your own first customer.

The fastest way to get out of disruption

Apple iPhone is the gold standard but Google Android is good enough. Be good enough. Dont try to leapfrog.

You no longer have to apologise for not being on the new technology.

Once customers make a vendor decision, their strong preference is to stay with that vendor. You dont have to be better at everything, but you do have to be good enough. The mantra is getting good enough, fast enough. Its not inspiring but you want to stay alive.

Your customers do not want to leave.

Geoffreys GREAT EIGHT, answers to eight getting to know you questions we ask all our authors:

_The Big Picture: What It's All About_

by Sean Carroll,

_The Lean Startup_

by Eric Ries.

Recommended book:

Clayton Christensen, author of

_The Innovators Dilemma_

.

If you could co-author a book with anybody who would that be, what would the book title be?

In a changing world, its important to design your business back from the customer. The customer is your first signal that your old values need to get redirected. Rather than trying to invent the future, staple yourself to a customer undergoing painful changes.

Great piece of advice you could share:

I was working at a start-up and the founder didnt keep agreements with investors. On the Saturday we were told there would be no payroll on a Monday. To survive, I checked in with people I knew in the industry, and said So, I have a little free time, is there anything I can take off your plate for a couple of thousand dollars? I made more money in six weeks than Id ever made, and thats how I became a consultant.

Whats been your lowest moment, and how did you recover?

How do you relax?

I have a Ph.D. in medieval literature. Both literature and business are interested in strategies for being successful, so Ive built a bridge between both parts of my life.

Whats a fun fact about you thats not widely known?

I try to staple myself to a customers problem and I dont let go. Wherever it drags me, I dont let go, and sooner or later, \(with others buy-in\), its wrestled to the ground.

Whats your secret of success?

Were heading towards a darker world. I think its going to be a tough decade. Im hoping we can weave something responsive out of that. Right now its not an optimistic time. We all need challenges, this will be a challenge.

_Members of The Growth Faculty can watch or listen to the whole interview with Geoffrey Moore, author of Zone to Win by logging in and[clicking here](https://www.thegrowthfaculty.com/onDemand/play.php?id=1082666e90084df294c9f6ad91feef2d1d)[.](https://www.thegrowthfaculty.com/blog/GreatIdeasZonetoWinbyGeoffreyMoore) _

_To become a member of The Growth Faculty, and receive substantial discounts on tickets to our live international speaker events,[click here](https://www.thegrowthfaculty.com/onDemand/?region=au&deal=Blog). _

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