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

4. 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

5. 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

6. 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.

7. Entertainment Industry

8. 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

9. Music Industry

10. 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

11. 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

12. theOatmeal.com

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

18. 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

19. Redefining

20. Skype http://www.forbes.com/2010/05/21/internet-enterprise-communications-technology-skype.html - Created in 2003 - Uses a VoIP network called Skype Protocol - Peer-to-peer network model - 37% of calls are business related - Frequently free

21. 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. http://articles.businessinsider.com/2008-04-08/tech/30079357_1_microsoft-disruptive- technologies-amazon-web-services#ixzz27P02qdk3

22. Microsoft http://www.youtube.com/watch?v=FvOrQDav zt4 http://www.youtube.com/watch?v=FvOrQDav zt4

23. 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

24. 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. https://sites.google.com/site/b188sjsu/Home/ebusiness/disruptive-technologyhttp://en.wikipedia.org/wiki/Disruptive_innovation

25. 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)

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