UNIT FOUR Building Innovation

UNIT FOUR Chapter Thirteen - Creating Innovative Organization Chapter Fourteen - Ebusiness Chapter Fifteen - Creating Collaborative Partnerships Chapter Sixteen - Integrating Wireless Technology in Business

Creating Innovative Organizations CHAPTER 13 Creating Innovative Organizations

LEARNING OUTCOMES 13.1 Compare disruptive and sustaining technologies 13.2 Explain how the Internet caused disruption among businesses

LEARNING OUTCOMES 13.3 Define the relationship between the Internet and the World Wide Web 13.4 Describe the Internet’s impact on information along with how these changes are affecting business

DISRUPTIVE TECHNOLOGY How can a company like Polaroid go bankrupt? Digital Darwinism – implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

Disruptive Versus Sustaining Technology What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? Disruptive technology – a new way of doing things that initially does not meet the needs of customers Sustaining technology – produces an improved product customers are eager to buy

Disruptive Versus Sustaining Technology

Disruptive Versus Sustaining Technology The Innovator’s Dilemma discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders

Disruptive Versus Sustaining Technology Companies that capitalized on disruptive technology

The Internet – Business Disruption One of the biggest forces changing business is the Internet Organizations must be able to transform as markets, economic environments, and technologies change Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology

Disruptive Versus Sustaining Technology Internet penetration by world region

Disruptive Versus Sustaining Technology World Internet Users

EVOLUTION OF THE INTERNET The Internet began as an emergency military communications system operated by the Department of Defense Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses Internet – computer networks that pass information from one to another using common computer protocols Protocol – standards that specify the format of data as well as the rules to be followed during transmission

Evolution of The World Wide Web World Wide Web (WWW) – a global hypertext system that uses the Internet as its transport mechanism Hypertext transport protocol (HTTP) – the Internet standard that supports the exchange of information on the WWW

Evolution of The World Wide Web

Evolution of the World Wide Web The Internet’s impact on information

Evolution of The World Wide Web File formats offered over the WWW

Evolution of The World Wide Web The Internet makes it possible to perform business in ways not previously imaginable It can also cause a digital divide Digital divide – when those with access to technology have great advantages over those without access to technology

Web 2.0 Web 2.0 - a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet

Web 2.0 Timeline of Web 1.0

The Future – Web 3.0 Semantic Web encompasses the following: Transforming the Web into a database An evolutionary path to artificial intelligence The realization of semantic Web and SOA Evolution toward 3D

CHAPTER THIRTEEN Opening Case Study Questions Do you believe the Ironman has used disruptive technology to change the way athletes participate in sports? Why or why not? What types of Web 2.0 technologies could WTC use on the Ironman.com website? What types of ethical dilemmas might WTC face in deploying real-time video over the Internet? What types of security issues does WTC need to address?

CHAPTER THIRTEEN CASE Failing to Innovate Obtaining the first-mover advantage is critical to any business that wants to compete in the Internet economy However, gaining a first-mover advantage is typically temporary, and without remaining innovative the company can soon fail

CHAPTER THIRTEEN CASE QUESTIONS If these companies all had a first-mover advantage, then why did the products fail? For each of the above determine if the technology used was disruptive or sustaining. Choose one of the products above and determine what the company could have done to prevent the product from failing. Can you name another technology product that failed? Why did it fail? What could the company have done differently for it to succeed?