The Digital Transformation Playbook: Rethink Your Business for the Digital Age

11; as context, 111–12, 115; 
creation templates, 106–12, 114; 
disruption, 208, 211; generator 
tool, 113, 113–17; as insights, 
107–8; leadership, 119, 120–21, 
190; as personalization, 110–11; 
as targeting, 108–10
dating sites, 70
decision-making: predictive, 
90, 95, 109, 112; in rapid 
experimentation, 146, 152–53; 
tools, 16
delivery industry, 31, 32, 189–90, 
199
demos, product, 33
Dennis, Geoff, 20
Deseret News, The, 171
Didi Kuaidi, 54
digital transformation: agility and 
readiness for, 240; blind spots, 
3–4; culture of innovation for, 
240–41; domains of, 4–10, 5, 
7; getting started on, 15–17; 
integration of, 241–42; key 
concepts of, 11, 239; playbook, 
10–14, 11; tools overview, 15–17
Discovery-Driven Growth (McGrath 
and MacMillan), 141
disintermediation, 77–78, 81–82, 
82

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266
I N D E X
Disney theme parks, 93–94
disruption: assets and, 208, 237; 
by asymmetric competition, 
196–97; challenger acquisition 
in, 232–33; co-opetition in, 
75–76; customer retention in, 
235–36; customer segments in, 
207, 208, 220, 228; customer 
trajectory in, 214–15, 224, 
225–27; defining, 195–97; exit 
strategy in, 236–37; imitation 
of, 205, 223, 233–34; incumbent 
identification, 220; incumbents, 
multiple, 217–18, 229–31, 
234–35; innovation without, 
195, 197, 237; inside-out, 214–15, 
216, 225; landslide, 229, 236–37; 
mobile computing, 201–2, 
208–10, 209, 214; network 
effects, 217, 228; new market 
theory of, 200–202, 208, 214; 
niche, 229; outdated theory of, 
193, 200–202; outside-in, 214, 
225, 226; overview, 17, 194–95, 
237; portfolio diversification 
and, 236; response planner tool, 
224, 224–31; as rhetoric, 195, 
197; rise of, 197–200; scope of, 
215–17, 227–29; substitution, 
230; testing, 222–24; use 
case, 216, 217; value network 
components of, 204, 207–8; 
value network examples of, 
208–13, 209, 210, 212; value 
network identification of, 222; 
value proposition components 
of, 188, 189, 204–6; value 
proposition examples of, 
208–13, 209, 210, 212; value 
proposition identification in, 
220–22; value train, 229–30
disruptive business model: map 
tool, 218–24, 219; splitting, 
234–35; theory components, 
195–96, 202–8; theory variables, 
213–18
distributors, 80, 83–84
divergent experimentation: 
characteristics, 128, 129, 131–32; 
digital impact on, 134; method, 
147, 147–54; timing of, 132–33
diversification, 236
DonorsChoose, 57
Drucker, Peter, 241
Dubner, Russell, 77
Duncan, David, 163
Duolingo, 38–39
DVDs, 66, 210–11
Dyer, Jeff, 160
eBay, 154, 156–57
e-books, 78, 215–16, 233
e-commerce. See marketplaces
economic efficiency, 67–68
Edison, Thomas, 137
education industry, 1–2, 32, 39, 112, 
157; value proposition roadmap 
example of, 181–88, 183, 185, 186, 
187, 189
electrification, 3
electronic goods: retail industry, 
61, 81; standards, 58, 59, 62, 66, 
165–67
Eliason, Frank, 49
employees: as customers, 37, 
46–47; data scientist, 118, 119, 
190; as innovators, 127, 159–60, 
161–62; platform competitive 

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I N D E X

267
benefits and, 65; skill-building 
challenges for, 47–48, 118–19; 
skill disruption, 207; value 
proposition and reconfiguration 
of, 191. See also agent roles
Encyclopædia Britannica, Inc., 1–2, 
172
engagement, customer network: 
behavior, 29–30; strategy, 31, 
33–34, 44, 175–76
ENIAC, 99–100
established companies: ahead of 
shrinking, 175–77; early value 
adaptation by, 175–76; focus on, 
15; innovation assumptions in, 
141, 159, 160; myopia of, 178, 191–
92; in shrinking markets, 1–2, 
169–76, 170; start-ups compared 
to, 3, 15, 127–28, 241
Esurance, 78, 84, 85, 86
Ethan Allan, 86
E
TRADE, 161
Evernote, 62
exchanges. See marketplaces
exit strategy, 236–37
eyeglasses industry, 212, 212–13, 
215, 216
Facebook: business model map 
of, 72, 72; co-opetition of, 75; 
employee reconfiguration at, 191; 
publishing intermediation by, 79, 
81–82, 82; rapid experimentation 
by, 130; Snapchat and, 233; 
threats to, 67, 176–77, 217–18, 232, 
233; valuation comparison of, 
66; value proposition adaptation 
by, 176–77, 191; WhatsApp and, 
217–18, 232
failure: rate, 159; smart, 141–42, 
162–64
Family Dollar, 146
Fasal, 125–27, 128, 131, 135, 137, 
139, 141
Ferguson, Rick, 31
finance industry: convergent 
experimentation in, 130; 
crowdfunding, 39; mobile 
payment systems in, 79; 
on-demand, 32; online brokerage 
disruption of, 233; protection 
app in, 112; revenue model 
disruption, 207, 228–29; social 
media in, 37, 49; transaction 
platforms of, 58, 59
financial budgeting, 96–97, 148–49, 
163, 190–91
fitness industry, 112
Fleiss, Jenny, 140–41
fluidity, 76–77
Forbes.com, 54, 57
Ford, Henry, 215
freelance economy, 68
freemiums, 205
frictionlessness, 63, 206
Frito-Lay, 27, 120
Fujifilm, 236
Furr, Nathan, 160
gaming industry, 61, 115, 163, 174, 
191–92
Gaylord Hotels, 108
GE. See General Electric
Gebbia, Joe, 50–52
Geico, 78
General Electric (GE), 99
Genest, Rick, 33
Goodwin, Tom, 64

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268
I N D E X
Google: Ads, 63; Android, 57, 69, 
75, 234–35; co-opetition of, 75; 
disrupter model split by, 234–35; 
Glass, 158; Maps, 92–93; rapid 
experimentation by, 123, 128, 
130; Search, 57, 67, 79, 123; self-
driving cars of, 76, 196; threat 
to, 67; valuation comparison, 66; 
Waze and, 29
GoPro, 37
government data, 96–97, 105, 106, 
146
grocery industry, 32, 130, 133–34, 146
Grove, Andy, 5, 175
GrubHub, 199
Gruenewald, Bobby, 19–20
Hackman, J. Richard, 149
Hagiu, Andrei, 56
Hanson, Kaaren, 125, 127, 135, 137
Harari, Yuval Noah, 159
hardware: standards, 58, 59, 62, 66, 
165–67; value train example in, 81
Hastings, Reed, 233
Hayes, John, 136
HBO, 52–53, 77, 84, 85
health care industry, 32–33, 100–
101, 110
hierarchy of effects, 25
hotel industry, 32, 50–52, 108, 109, 
199, 205
hot spotting, 110
Hurst, Mark, 192
Hyman, Jenn, 140–41
IBM, 100, 101
ideation: customer network 
strategy generator, 43–45; 
customer suggestions, 24, 37, 
39; data value generator for, 
115; divergent experimentation, 
131–32, 150–51; value proposition 
roadmap, 186–87, 187
IDEO, 137, 148–49, 150
imitation, 205, 223, 233–34
incentives, leadership, 240
incubation, 241
India, 62, 125–27
Industrial Revolution, 3, 198
InnoCentive, 39
innovation: big data management, 
99–101; culture of, 135, 153, 
159–60, 161–62, 240–41; data 
for, 95–96; defining, 124, 197; 
without disruption, 195, 197, 
237; by employees, 127, 159–60, 
161–62; failures, 141–42, 162–64; 
key success example of, 125–27; 
leadership, 159, 160, 161, 163–64; 
learning-based model for, 
127–28, 135–36, 159–60; open 
customer competitions for, 39; 
organizational challenges of, 
158–64; rhetoric, 195, 197; scaling 
up, 153, 154–58, 155; strategy 
changes, 5, 7, 9, 123–25, 125; 
strategy playbook for, 11, 13–14; 
traditional cycle comparison,