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

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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.