1. UNIT FOUR
Building Innovation

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

3. Creating Innovative Organizations
CHAPTER 13
Creating Innovative Organizations

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

5. 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

6. 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

7. 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

8. Disruptive Versus Sustaining Technology

9. 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

10. Disruptive Versus Sustaining Technology
Companies that capitalized on disruptive technology

11. 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

12. Disruptive Versus Sustaining Technology
Internet penetration by world region

13. Disruptive Versus Sustaining Technology
World Internet Users

14. 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

15. 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

16. Evolution of The World Wide Web

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

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

19. 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

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

21. Web 2.0
Timeline of Web 1.0

22. 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

23. 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?

24. 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

25. 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?