Two fundamental points about ‘disruptive innovation’:
#1 Only 9% of all companies in ‘disrupted’ industries survive. “Let’s be generous and double that: fewer than one in five traditional broadcasters and publishers will survive if historical trends hold”.
#2 100% of that surviving 9% had set up a disruptive (new) business as a totally separate division of the parent company – “no exceptions.”
That means a separate location, management, and team – with a significant number of ‘digital native’ recruits and investment to become “the best in the world”. A separate digital company won’t ensure success, Gilbert argues. It is “necessary but not sufficient.”