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What is the Difference B etween…. Sustaining Innovation and Disruptive Innovation. Sustaining Innovation. “Doing i t Better” Way For Products to C hange Does Not Create New G rowth. Disruptive Innovation. PS3 vs. Wii. “Playing the Game Differently” Creates a New Market

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slide1
What is the Difference Between…

Sustaining Innovation

and

Disruptive Innovation

sustaining innovation
Sustaining Innovation
  • “Doing it Better”
  • Way For Products to Change
  • Does Not Create New Growth
disruptive innovation
Disruptive Innovation

PS3 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
slide9
VOIP
  • 35% of Businesses Use VoIP
  • Allows For One Phone Line
  • Avoids Long Distance Charges
communication
Communication
  • Post Office to Today
  • Communication Forms are Merging
  • Mobile Computing Could Replace Desktops and Notebooks
music industry s current state
Music Industry’s Current State
  • Lower Profit Margins
  • Whatever song you want, whenever you want
new music industry business models
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
Ethical Questions
  • Difference Between Downloading Free Music Versus Listening to Music for Free Over the Radio or Internet?
  • Is Downloading Free Music Unethical?
disruptive innovation1
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
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
the future of hollywood
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
Early Adoption Risks
  • Picking the Wrong Technology
    • HD-DVD vs. Blu-ray
  • Not Following Real Consumer Trends
    • GM’s Hummer
  • Further Technological Innovation
late adopters
Late Adopters

Kodak

Hasbro

major success stories
Major Success Stories

Google

Apple

  • Apps
  • beta releases
  • Adwords
  • Reinvention
  • iPod
  • iPhone
  • iPad
slide24

“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
Sources
  • http://clients.ibisworld.com/industryus/Majorcompanies.aspx?indid=894
  • http://www.ksla.com/Global/story.asp?S=12533107
  • http://nymag.com/nymetro/news/media/columns/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
Sources cont.
  • http://www.zdnet.com/blog/storage/when-will-the-ipad-replace-desktops/1631
  • http://voipstrategy.com/University/VoIP_Benefits.aspx.html
  • http://voipstrategy.com/University/VoIP_Benefits.aspx.html
  • http://www.lightreading.com/document.asp?doc_id=190826
  • http://www.macworld.com/article/1157817/tv_movie_future.html
  • http://www.washingtonpost.com/wp-dyn/content/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/