disruptive technology presentation (1)
TRANSCRIPT
What is the Difference Between…
Sustaining Innovationand
Disruptive Innovation
Sustaining Innovation
•“Doing it Better”•Way For Products to Change•Does Not Create New Growth
Disruptive InnovationPS3 vs.
Wii•“Playing the Game
Differently”•Creates a New Market•Transforms or
Destroys Current Market
•Products Become▫Simpler▫More Affordable▫More Accessible▫Customizable
•Drives Growth
Technology is Going to Advance and There is No Stopping it, Even if it Ruins an Industry…
…The Good News is That it Often Creates a New Industry
Companies Either Get on Board…
…Or Get Left Behind
The Technology Industry
VOIP•35% of Businesses Use VoIP•Allows For One Phone Line•Avoids Long Distance Charges
Communication
•Post Office to Today
•Communication Forms are Merging
•Mobile Computing Could Replace Desktops and Notebooks
Music Industry’s Current State
•Lower Profit Margins•Whatever song you want, whenever you
want
New Music Industry Business Models•Subscription Services
▫Pandora, Spotify, Grooveshark•Digital Download Services
▫Apple iTunes, Amazon MP3•Partnering With Tech Companies
▫EMI and Warner•Online Album Promotions
▫The Killers
Ethical Questions•Difference Between Downloading Free
Music Versus Listening to Music for Free Over the Radio or Internet?
•Is Downloading Free Music Unethical?
Name That Disruptive
Technology!
Disruptive Innovation•Helps Create New Markets•Disrupts an Existing Market and Value
Network▫Can Take a Few Years or Even Decades
•Displaces an Earlier Technology•Unpredictable•Designed for a Different Set of Consumers
in a New Market•Lowers Prices in Existing Market
AKA Creative Destruction•Leads to Paradigm Shifts
▫A Change in the Basic Assumptions or System Conditions
▫Permanently Disrupting the Framework•The Idea of Punctuated Equilibrium With
the Emergence of New Eras
Where There is Risk, There is Reward
The S-Curve
The Future of Hollywood•Digital Content
•Netflix and Hulu Plus are Looking at Original Content
•Consumers are Willing to Pay for Access to Content
•Ticket Sales have fallen 200 million since 2002
Early Adoption Risks•Picking the Wrong Technology
▫HD-DVD vs. Blu-ray•Not Following Real Consumer Trends
▫GM’s Hummer•Further Technological Innovation
Late AdoptersKodak Hasbro
Major Success StoriesGoogle Apple
• Apps• beta releases• Adwords
• Reinvention• iPod• iPhone• iPad
“You don’t know when the transition period will start. The
idea is to understand that it will…and become prepared for it.”
-Dr. Timothy BishopFuture Studies, University of Houston
Sources• http://clients.ibisworld.com/industryus/M
ajorcompanies.aspx?indid=894• http://www.ksla.com/Global/story.asp?S=
12533107• http://nymag.com/nymetro/news/media/co
lumns/medialife/6099/• http://www.theregister.co.uk/2010/03/08/
npd_home_streaming/• http://
www.fool.com/investing/general/2012/06/18/streaming-music-will-make-your-ears-and-pockets-r.aspx
• http://www.hollywoodreporter.com/news/music-film-industries-average-lowest-167422?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+thr%2Fnews+%28The+Hollywood+Reporter+-+Top+Stories%29
• http://articles.businessinsider.com/2011-02-18/tech/30052663_1_riaa-music-industry-cd-era
Sources cont.• http://www.zdnet.com/blog/storage/when-
will-the-ipad-replace-desktops/1631• http://voipstrategy.com/University/VoIP_B
enefits.aspx.html• http://voipstrategy.com/University/VoIP_B
enefits.aspx.html• http://www.lightreading.com/document.as
p?doc_id=190826• http://www.macworld.com/article/115781
7/tv_movie_future.html• http://www.washingtonpost.com/wp-dyn/c
ontent/article/2005/11/11/AR2005111101644_2.html
• http://myventurepad.com/jeffweinberger/91147/apple%E2%80%99s-plight-will-disruptive-innovation-make-it-winner
• http://www.the-numbers.com/market/