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What is the Difference Between… Sustaining Innovation and Disruptive Innovation.

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Presentation on theme: "What is the Difference Between… Sustaining Innovation and Disruptive Innovation."— Presentation transcript:

1 What is the Difference Between… Sustaining Innovation and Disruptive Innovation

2 Sustaining Innovation Doing it Better Way For Products to Change Does Not Create New Growth

3 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

4 Technology is Going to Advance and There is No Stopping it, Even if it Ruins an Industry…

5 …The Good News is That it Often Creates a New Industry

6 Companies Either Get on Board…

7 …Or Get Left Behind

8 The Technology Industry

9 VOIP 35% of Businesses Use VoIP Allows For One Phone Line Avoids Long Distance Charges

10 Communication Post Office to Today Communication Forms are Merging Mobile Computing Could Replace Desktops and Notebooks

11 Music Industrys Current State Lower Profit Margins Whatever song you want, whenever you want

12 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

13 Ethical Questions Difference Between Downloading Free Music Versus Listening to Music for Free Over the Radio or Internet? Is Downloading Free Music Unethical?

14 Name That Disruptive Technology!


16 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

17 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

18 Where There is Risk, There is Reward

19 The S-Curve

20 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

21 Early Adoption Risks Picking the Wrong Technology HD-DVD vs. Blu-ray Not Following Real Consumer Trends GMs Hummer Further Technological Innovation

22 Late Adopters KodakHasbro

23 Major Success Stories GoogleApple Apps beta releases Adwords Reinvention iPod iPhone iPad

24 You dont know when the transition period will start. The idea is to understand that it will… and become prepared for it. -Dr. Timothy Bishop Future Studies, University of Houston

25 Sources s.aspx?indid=894 s.aspx?indid=894 ialife/6099/ ialife/6099/ streaming/ streaming/ eaming-music-will-make-your-ears-and-pockets-r.aspx eaming-music-will-make-your-ears-and-pockets-r.aspx industries-average-lowest- 167422?utm_source=feedburner&utm_medium=feed&u tm_campaign=Feed%3A+thr%2Fnews+%28The+Holly wood+Reporter+-+Top+Stories%29 industries-average-lowest- 167422?utm_source=feedburner&utm_medium=feed&u tm_campaign=Feed%3A+thr%2Fnews+%28The+Holly wood+Reporter+-+Top+Stories%29 18/tech/30052663_1_riaa-music-industry-cd-era 18/tech/30052663_1_riaa-music-industry-cd-era

26 Sources cont. replace-desktops/1631 replace-desktops/1631 dyn/content/article/2005/11/11/AR2005111101644_2.html dyn/content/article/2005/11/11/AR2005111101644_2.html 80%99s-plight-will-disruptive-innovation-make-it-winner 80%99s-plight-will-disruptive-innovation-make-it-winner

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