Decouple to Disrupt

Disruption is not always about technology.  It often is about disrupting a business model.

Cases in point being Uber and Airbnb.

And as Thales S. Teixeira explains in his book “Unlocking the Customer Value Chain” disruption of a business model is often about decoupling the “customer value chain” – the process in which a customer moves from evaluation to short-listing to purchase and use.

For example Zipcar, the long-term car renting service, decouples the driving a car from purchasing and maintaining it.

Decoupling is not a new phenomenon. Budget airlines and online travel sites have been doing it for years.

The advantage with decoupling is that it is limited only by one’s imagination and is bottom-up rather than top-driven  – in that it is customer-driven.

For example if Netflix’s subscription-model is a success would it be possible that it will work in other categories? Already a few intrepid brands are experimenting with it in a variety-driven category like fashion on one hand and on the other a habit-driven category like personal care.

How about mobile phones? A subscription services that allows one to be using the latest model without the hassle of  selling or buying one?

In our consulting practice in india we have recommended decoupling to the owner of an entertainment park with a large land holding advantageoulsy located near a mega city. As customers crave for a large variety of entertainment choices we have recommended that they invite a wide variety of entertainment options on a revenue-sharing basis, even considering selling major, expensive rides to third parties to free up resources for  marketing and infrastructure.

The threat of decoupling should drive manager of existing brands and businesses to new levels of paranoia. If a part of their process is cost-inefficient or less than convenient for customers, it is ripe for disruption through decoupling.