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: - Declared bankruptcy in Now has less than 900 stores

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? - 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 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

Music Industry

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 Disrupted by the easy access to music o Improved distribution channels o Files are harder to charge for than physical copies Artists are starting to assist the process Labels are becoming obsolete

theOatmeal.com

POTS - POTS - Basic, low speed, analog telephone service - No mobile capabilities - Reliable - Expensive

VoIP - Voice over Internet Protocol - Digital calls over the internet - No need for infrastructure - Additional functionality - Caller ID, Voic , Three-way calling - Portable - Lower costs - Bundled services

Redefining

Skype - Created in Uses a VoIP network called Skype Protocol - Peer-to-peer network model - 37% of calls are business related - Frequently free

Microsoft vs. GoogleApps Microsoft Model o Software Sales o Complex, Feature- Rich Applications Google o Software as a Service (SaaS) o Cheaper, more Convenient, Simple Solution o Meets the needs of the low end of the market. technologies-amazon-web-services#ixzz27P02qdk3

Microsoft zt4 zt4

Advantages of GoogleApps Price Anywhere/anytime access Real-time collaboration 99.9% uptime guarantee Minimal storage limits Platform independence SPAM and security 16/tech/ _1_microsoft-customers-disruptive-technologies- google-threat#ixzz27OuO7RSJ

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.

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

Questions? Conclusion:Innovation Happens, Don’t Get Left Behind