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Disruptive innovation workshop
- 1. Disruptive Innovation A workshop Boris Kraft, Magnolia International Ltd. 10.2011, CMS Expert Group Europe 1 Version 1 CMS Experts Europe Workshop
- 2. IBM was built on punched cards, and our foundation will always be punched 2 Version 1 CMS Experts Europe Workshop
- 3. Goals 3 Version 1 CMS Experts Europe Workshop
- 4. Goals of this Workshop Understand Disruptive Innovation Identify possible Disruptive Innovation in the CMS space Possible Take-Aways: • Learn to spot disruptive innovation • know what to keep an eye on right now • identify unmet customer needs • widen your focus to see new possibilities 4 Version 1 CMS Experts Europe Workshop
- 5. What is Disruptive Innovation? 5 Version 1 CMS Experts Europe Workshop
- 6. Disruptive Innovation A term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors 6 Version 1 CMS Experts Europe Workshop
- 7. Disruptive Innovation Typical Characteristics made for a new generation of consumers need a new market simple and cheaper “Good enough” for some Innovate faster than customer’s needs grow 7 Version 1 CMS Experts Europe Workshop
- 8. source: http://en.wikipedia.org/wiki/Disruptive_technology 8 Version 1 CMS Experts Europe Workshop
- 9. Any Examples? 9 Version 1 CMS Experts Europe Workshop
- 10. 10 Version 1 CMS Experts Europe Workshop
- 11. 11 Version 1 CMS Experts Europe Workshop
- 12. Disruptive Innovation Examples Steamships vs. sailing ships Magnetic tape vs. Punched Cards LCD vs. CRT Craigslist vs. classified advertising Honda’s 50cc motorbike in the USA Open Source vs. Proprietary Software 12 Version 1 CMS Experts Europe Workshop
- 13. What could disrupt the current state of the CMS industry? 13 Version 1 CMS Experts Europe Workshop
- 14. Discussion Collect possible Disruptive Innovations analyze • are they or aren’t they Disruptive Innovation? which are the top three threats/opportunities? 14 Version 1 CMS Experts Europe Workshop
- 15. One Final Thought 15 Version 1 CMS Experts Europe Workshop
- 16. Fairlight CMI Series I (1979) ~£18,000 (=120’000 USD today) 16 Version 1 CMS Experts Europe Workshop
- 17. Fairlight CMI app (2011) $49 17 Version 1 CMS Experts Europe Workshop
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- For centuries, all trans-Atlantic shipping was done with sailing ships. When steam ships were introduced they were not reliable enough to travel trans-Atlantic distances. They could not travel far without breaking down and were inclined to blow up. But steam ships found a niche in lake and river transport where distances were short and where they had the advantage of being able to travel against the wind and on wind-still days. Once in the niche, they could improve reliability until they were able to travel trans-Atlantic. Once that happened, all shipping switched to steam, and all the companies producing trans-Atlantic sailing ships went out of business; not one survived into the 20th century.\n
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- IBM punch cards\nIn 1949, information was stored on paper punch cards. It was the leading edge of data processing technology. There were 80 characters per card and a good processing speed was 100 cards per minute. That's 133 characters per second. A white-haired IBM veteran in Poughkeepsie is credited to saying, “You young fellows remember, IBM was built on punched cards, and our foundation will always be punched cards.”\nHowever, a more compact means of storing data was needed. The infant technology of magnetic tape that was based on gluing bits of rusted iron onto strips of plastic held promise. The first marketed tape drive from IBM operated at 7,500 characters per second -- 56 times faster than the punch card rate.\nToday(?), IBM Ultrium LTO tape cartridge records more than 124,000 bits per inch, and densities of over 250,000 bits per inch seem feasible in the near future.\n\nHonda’s 50cc motorbike\nHonda's invasion of the North American motorcycle industry shhow even a process of trial and error can disrupt the market. Planning to introduce a fast, high-powered motorcycle in the US in 1959, Honda discovered an untapped market for small, inexpensive motorized bikes and created an ad campaign tailored to a market very different from the established network in which Harley-Davidson, BMW, and other traditional motorcycle manufacturers competed. The 50cc motorbike, a disruptive technology in the American market, fueled Honda's growth; by 1975, the company had captured a substantial share of the market with annual sales of 5,000,000 units largely with a product it had not even foreseen in its initial planning.\n\nNewspapers and classified advertising\n"Classified ads and stock market quotations are the bedrock of the press. Should an alternative form of easy access to such diverse daily information be found, the press will fold." Marshall McLuhan, Understanding Media, 1964. \nIn 2000, classified ads was a $20 billion a year business. In 2008 it had fallen to $10 billion because of online classified ads, mostly Craigslist. Craigslist has managed to pull $10 billion out the classified ads industry using an operation staffed by just 30 people.\n
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- 1979: Fairlight CMI I (24 kHz, 8 Bit) ~£18,000\n1982: Fairlight CMI II (30,2 kHz, 8 Bit) ~£25,000\n1983: Fairlight CMI IIx (MIDI, SMPTE, 30,2 kHz, 8 Bit) ~£27,000\n1985: Fairlight CMI III (MIDI, SMPTE, 100 kHz, 16 Bit) £50,000\n\nThe Fairlight CMI was very well built, assembled by hand with expensive components and consequently it was highly priced (around £20,000 for a Series I). Although later models, adjusting for inflation, were getting comparatively less expensive as the relevant technology was getting cheaper, competitors with similar performance and lower prices started to multiply. For some years the CMI was sought after by those who could afford one, but competition made life increasingly difficult for the company. Fairlight managed to survive until the mid-1980s, relying more and more heavily on its revered name and its products' cult status for sales.\n\nIn the United States, a new sampler company called Ensoniq introduced the Ensoniq Mirage in 1985, at a price that made sampling affordable to the average musician for the first time. Though the Mirage was essentially a poor man's sampler with significantly inferior hardware specs, at less than $2000 it was nevertheless sufficiently powered (8-bit microprocessor) to signal the beginning of the end of the CMI. In addition to these low-cost dedicated systems, very cheap add-in cards for popular home computers started to appear at this time, for example the Apple II-based Greengate DS3 sampler card.\n\nsource http://en.wikipedia.org/wiki/Fairlight_CMI\n
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