Upload
walter-parsons
View
215
Download
2
Embed Size (px)
Citation preview
How can we predict disruptions in technology to use innovative ideas for our
benefit?
Blockbuster
Top of the food chain:
- Had over 4000 stores nationwide at its peak
- Largest video rental chain in the nation
- Over 40 million U.S. members
Disrupted by small, innovative companies:
- Declared bankruptcy in 2010
- Now has less than 900 stores
Netflix
What was so different?
- Order movies by mail online
- Watch movies by streaming them online
- No trips to the store, no late fees, no hassle
Result:
- Over 23 million subscribers
- $1.5 billion in revenue last year
- Over 20% of internet data usage from 8-10 pm
What Can Blockbuster Teach Us?
- Blockbuster did not keep up with new trends
- They joined the online game far too late
If you don't innovate, you must be willing to follow.
Entertainment Industry
Entertainment Industry
Results:• Flat $5 cost that
went straight to Louis
• Grossed over 1.1 million
• No cut to label or channel
• Sold rights to HBO and FX for further profit
Music Industry
• Pay what you want system - “digital tip jar”
• Physical copies available to order
• No label costs
• Several times more successful than their previous album, millions of sales
• Sold-out concerts
State of the Music Industry
• Disrupted by the easy access to music o Improved distribution channelso Files are harder to charge for than physical copies
• Artists are starting to assist the process
• Labels are becoming obsolete
theOatmeal.com
theOatmeal.com
theOatmeal.com
POTS
- POTS- Basic, low speed, analog telephone
service- No mobile capabilities- Reliable- Expensive
VoIP
- Voice over Internet Protocol- Digital calls over the internet
- No need for infrastructure- Additional functionality
- Caller ID, Voicemail, Three-way calling
- Portable- Lower costs- Bundled services
http://www.businessweek.com/stories/2008-11-03/who-killed-the-voip-revolution-businessweek-business-news-stock-market-and-financial-advice
Redefining
Skype
http://www.forbes.com/2010/05/21/internet-enterprise-communications-technology-skype.html
- Created in 2003
- Uses a VoIP network called Skype Protocol
- Peer-to-peer network model
- 37% of calls are business related
- Frequently free
Microsoft vs. GoogleApps
• Microsoft Modelo Software Saleso Complex, Feature-
Rich Applications
• Googleo Software as a Service
(SaaS)o Cheaper, more
Convenient, Simple Solution
o Meets the needs of the low end of the market. http://articles.businessinsider.com/2008-04-08/tech/30079357_1_microsoft-disruptive-technol
ogies-amazon-web-services#ixzz27P02qdk3
Microsoft
• http://www.youtube.com/watch?v=FvOrQDavzt4
Advantages of GoogleApps
• Price
• Anywhere/anytime access
• Real-time collaboration
• 99.9% uptime guarantee
• Minimal storage limits
• Platform independence
• SPAM and email security http://articles.businessinsider.com/2007-12-16/tech/30030761_1_
microsoft-customers-disruptive-technologies-google-threat#ixzz27OuO7RSJ
The Innovator’s Dilemma
The Innovator’s Dilemma by Clayton Christensen perfectly describes the phenomenon.
• New-market disruptive technology focuses on meeting demand for a breakthrough product.
• Low-end disruptive technology targets customers for whom cost is a primary concern.
https://sites.google.com/site/b188sjsu/Home/ebusiness/disruptive-technologyhttp://en.wikipedia.org/wiki/Disruptive_innovation
Lessons Learned
• Change Happenso Never-Ending Process
• Fundamental Disruptions Happen o Forever Alters Successful Business Models
• Certain Products are “Irreplaceable” and are Resistant to Changeo Ex. Live Shows.
• Reconsider Preconceptionso (Piracy is proportional to sales)
Questions?
Conclusion: Innovation Happens, Don’t Get Left Behind