Daily Fintech

Watch Blockchain’s Creative Destruction 7 Act Play

If you are in a market that is going through wild, disruptive change where nobody knows how it will play out, you might be thinking:

“We have seen this movie before.”

You have.

Markets go through fundamental disruptive change in fairly predictable phases.

Here are the 7 acts in the Creative Destruction play. These stories have played to packed audiences in markets such a recorded music, newspapers, books, telecom, magazines, software (again and again and again) and are now playing out in markets that used to be boringly stable such as finance/banking, accounting, legal services, government and healthcare. This is what happens when software eats the world.

 

The Creative Destruction 7 Act Play

Although history does not repeat, it often rhymes. You can spot these patterns throughout the history of disruptive waves of change. We call this cheat sheet the Creative Destruction 7 Act Play. It helps you to spot where your market is today.

Note: The Play is written from the point of view of the incumbents. Many readers work for these incumbents today or are considering working for one of these incumbents. For those readers,understanding the Creative Destruction 7 Act Play is how you avoid being trapped in Blockbuster before streaming video went mainstream or Kodak before digital cameras came to every smartphone. This incumbent centric viewpoint is also useful for startup teams, because the position of the incumbents is the market reality that startup teams need to come to terms with.

 

 

 

 

 

The Play then starts again the next day (or in reality, next decade). The markets dominated by the new old guard  (Act 7) become Act 1 the next day/decade. 

Bernard Lunn is the CEO of Daily Fintech and author of The Blockchain Economy. He provides advisory services to companies involved with Fintech (reach out to julia at daily fintech dot com to discuss his services).

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