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Building Innovation
Learning Outcomes
1.Compare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruption
2.Describe Web 1.0 along with eBusiness and its associated advantages
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Concepts
1. HTTP, HTML, URL, WWW2. Banner ad, pop up ad, click through ad, cookie3. Digital Darwinism
– Why did Polaroid go bankrupt?4. Web 1.05. Disruptive versus Sustaining Technologies6. Innovator’s Dilemma7. Ultimate Business Disrupters8. Ecommerce9. Ebusiness10. The Long Tail
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Disruptive versus Sustaining Technology
• Innovator’s Dilemma (Clayton Christensen) – take advantage of disruptive technologies without
hindering existing relationships with customers, partners, and stakeholders
– What did exactly went wrong with Xerox, IBM, Sears, and DEC?
– Why did Polaroid go bankrupt?
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An Ultimate Business Disruptor
• WHAT was the disruptor
– The Internet and the World Wide Web
– DARPA/ARPANET
• HOW did it work?
– Organizations must be able to transform as markets, economic environments, and technologies change
• WHY did it help businesses succeed?
– Focusing on the unexpected allowed organizations to capitalize on the opportunity for new business growth
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How did the Internet/WWW affect …The following Industries …1.Automobile
– Brokering (used car sellers/buyers)2.Publishing
– Anyone can publish online content, e. g. Lulu.com
3.Education/Training– Recertification for Doctors, Cisco certifications
4.Entertainment– Buying/selling music online
5.Retail– Online retail growing 10% annually ($250 billion in 2014)
6.Travel– E.g. Expedia.com
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The Long Tail - Chris Anderson
… is the tail of a typical sales curve… e.g. Netflix/Blockbuster1.How would you create a long tail?2.What are its disadvantages?3.What are the constraints of a long tail?
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Opening New Markets• What points does the figure suggest?• Different types of mediation:
1. Cybermediation2. Disintermediation 3. Reintermediation
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Improving Effectiveness
• Clickstream data tracks the exact pattern of a consumer’s navigation through a website
• Clickstream data can reveal– Number of pageviews– Pattern of websites visited– Length of stay on a website– Date and time visited– Number of customers with shopping carts– Number of abandoned shopping carts
• For example: WebTrends
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Think about it: Measuring eBusiness EffectiveinessConsider what website/clickstream metrics you would use to measure your website’s effectiveness.