building innovation learning outcomes 1.compare disruptive and sustaining technologies and explain...

Building Innovation

Learning Outcomes

1.Compare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruption

2.Describe Web 1.0 along with eBusiness and its associated advantages

13-1

Concepts

1. HTTP, HTML, URL, WWW2. Banner ad, pop up ad, click through ad, cookie3. Digital Darwinism

– Why did Polaroid go bankrupt?4. Web 1.05. Disruptive versus Sustaining Technologies6. Innovator’s Dilemma7. Ultimate Business Disrupters8. Ecommerce9. Ebusiness10. The Long Tail

Disruptive versus Sustaining Technology

• Innovator’s Dilemma (Clayton Christensen) – take advantage of disruptive technologies without

hindering existing relationships with customers, partners, and stakeholders

– What did exactly went wrong with Xerox, IBM, Sears, and DEC?

– Why did Polaroid go bankrupt?

An Ultimate Business Disruptor

• WHAT was the disruptor

– The Internet and the World Wide Web

– DARPA/ARPANET

• HOW did it work?

– Organizations must be able to transform as markets, economic environments, and technologies change

• WHY did it help businesses succeed?

– Focusing on the unexpected allowed organizations to capitalize on the opportunity for new business growth

How did the Internet/WWW affect …The following Industries …1.Automobile

– Brokering (used car sellers/buyers)2.Publishing

– Anyone can publish online content, e. g. Lulu.com

3.Education/Training– Recertification for Doctors, Cisco certifications

4.Entertainment– Buying/selling music online

5.Retail– Online retail growing 10% annually ($250 billion in 2014)

6.Travel– E.g. Expedia.com

The Long Tail - Chris Anderson

… is the tail of a typical sales curve… e.g. Netflix/Blockbuster1.How would you create a long tail?2.What are its disadvantages?3.What are the constraints of a long tail?

Opening New Markets• What points does the figure suggest?• Different types of mediation:

1. Cybermediation2. Disintermediation 3. Reintermediation

Improving Effectiveness

• Clickstream data tracks the exact pattern of a consumer’s navigation through a website

• Clickstream data can reveal– Number of pageviews– Pattern of websites visited– Length of stay on a website– Date and time visited– Number of customers with shopping carts– Number of abandoned shopping carts

• For example: WebTrends

Think about it: Measuring eBusiness EffectiveinessConsider what website/clickstream metrics you would use to measure your website’s effectiveness.