the business revolution - #himc nyc 1/12
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© 2011 co:collective llc
The Business Revolution.
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Hyper Island Master Class
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Terrible time to IM with your assistant, great time to though.
2(psst - #HIMC)
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Hi, I’m @darrellwhitelaw. Technology Experience Lead / co:collective
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We all have a past.
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2 studiosa bunch of people
lots of money2 years
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Clients
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Proof it works.
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Evolving Business Models.
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The definition of “business model”
A business model describes the rationale of how an organization creates, delivers, and captures value.
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Every business changes, it’s just a question of how gracefully they do it.
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A short story.
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(©1888)
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At it’s peak.
• pioneer in technology in the late 1800’s• built a digital camera by 1975• accounted for 90% of film sales in US in 1976• regularly rated one of the 5 most valuable brands• revenue of $16B in 1996• 145,000 employees
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Forecasted the death of film would be 2010 . . . in 1979
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Today.
• will be bankrupt unless it sells off 1000 patents• restructuring into multiple business units• nine quarterly losses in three years• revenue of $6.2B• share price has fallen 90% in one year• ~1,450 employees
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Pretty much the same leader as Kodak in Asia.
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Today.
• operating in several successful (new) markets• consistent YoY gains• 40% share of photofinishing market• 78,862 employees• generally not fucked
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The similarities
• both companies• both made film at one point• both had their business rendered obsolete
(I’d argue it stops there)
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Kodak
A culture of complacency:
• took too long to make acquisitions
• management held onto film business
• perfectionist mindset in new business channels
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Fuji
An early three-pronged strategy:
• squeeze as much money out of the film business as possible
• prepare for the switch to digital
• develop new business lines.
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Don’t be lazy.Don’t be irresponsible.
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Shigetaka KomoriCEO - Fujifilm
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Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one.
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The lesson is?
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What worked in 1912 won’t work in 2012. unless your industry is crochet.And then it’s probably automated, so there.
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Because change is
hard, costs money and
is risky.
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But I can assure you of 3 things.
Death, taxes and the CMO will be gone in 18 months.
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Innovate early, often and aggressively.
Know your company CAN change.
Predict market changes and act accordingly.
Find a tolerance point between awesome and profitable
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Curation & Community.
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1934 - 2003 1989 - Present
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MCA built an empire based on music as a commodity.
It worked for years.
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Then the bottom fell out
Uh oh.
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Matador on the other hand focused on curating a culture, and adding value to a scene and community.
It’s still working.
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Old media will adapt to find new models of consumption
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“The key discovery is that we’re not just driving digital growth, we’re driving analog growth.”- Lisa Hsia, VP New Media Bravo
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Outlive
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There is no silver bullet for longevity.
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(don’t sleep!)
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Netflix, July – November 2011
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Every giant will fall and every innovator will make a mistake.
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But try to stay positive.
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The goal is to learn to change rapidly to recover and thrive.
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Thanks!
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Get at me, @darrellwhitelaw or [email protected] if you’re legacy.