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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:

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how can we predict disruptions in technology to use innovative ideas for our benefit

How can we predict disruptions in technology to use innovative ideas for our benefit?

blockbuster
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
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
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 industry1
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

slide10
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
State of the Music Industry
  • Disrupted by the easy access to music
    • Improved distribution channels
    • Files are harder to charge for than physical copies
  • Artists are starting to assist the process
  • Labels are becoming obsolete
slide17
POTS

- POTS

- Basic, low speed, analog telephone service

- No mobile capabilities

- Reliable

- Expensive

slide18
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

skype
Skype

- Created in 2003

- Uses a VoIP network called Skype Protocol

- Peer-to-peer network model

- 37% of calls are business related

- Frequently free

http://www.forbes.com/2010/05/21/internet-enterprise-communications-technology-skype.html

microsoft vs googleapps
Microsoft vs. GoogleApps
  • Microsoft Model
    • Software Sales
    • Complex, Feature-Rich Applications
  • Google
    • Software as a Service (SaaS)
    • Cheaper, more Convenient, Simple Solution
    • Meets the needs of the low end of the market.
  • http://articles.businessinsider.com/2008-04-08/tech/30079357_1_microsoft-disruptive-technologies-amazon-web-services#ixzz27P02qdk3
microsoft
Microsoft

http://www.youtube.com/watch?v=FvOrQDavzt4

advantages of googleapps
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
  • 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.  

http://en.wikipedia.org/wiki/Disruptive_innovation

https://sites.google.com/site/b188sjsu/Home/ebusiness/disruptive-technology

lessons learned
Lessons Learned
  • Change Happens
    • Never-Ending Process
  • Fundamental Disruptions Happen
    • Forever Alters Successful Business Models
  • Certain Products are “Irreplaceable” and are Resistant to Change
    • Ex. Live Shows.
  • Reconsider Preconceptions
    • (Piracy is proportional to sales)
questions

Questions?

Conclusion:Innovation Happens,

Don’t Get Left Behind