Chapter 1. Crafting a Disruptive Hypothesis: Be Wrong at the Start to Be Right at the End

“I love tackling lazy industries.”

—Richard Branson1

It all starts with a wild question: In Hollywood, it might be, “What would happen if a shark swam into a beach resort and attacked a swimmer?” Jaws. In architecture, someone must have wondered, “What would happen if we put the plumbing, electrical services, and air vents on the outside of a building instead of the inside?” Pompidou Center, Paris. In fashion, “What would happen if we sold socks in sets of three, where none of them match?” Little Miss Matched. In the video rental business, “What would happen if we didn’t charge late fees?” Netflix.

Each of these innovations—which were revolutionary in their ...

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