I hope everyone had a great break! To start back into things, this week we have just one blog question that you need to answer based on the chapter by Barlow & Li (2010) "Disruptive Technologies and Applications" which you can find on Blackboard. Answer the following question:
Think about an example of a technology or system that has impacted on you, or on a situation/setting that you know about. Please describe what it was and what happened. In what ways (if at all) was this disruptive? (Please link your answer with 1-2 themes from the reading.)
Reminder: Groups should remember to update their topics / research questions in the post on the blog for your group.
Note: As always, if your comment does not show up at first, it may be stuck in the spam queue. I try to check it 1-2 times a day over the weekend and several times on Monday morning. If your post has not showed up, you do not need to post multiple times, but if you are concerned, please feel free to drop me an email and ask if it is in the spam queue.
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ReplyDeleteA system that that has impacted the music industry is the iTunes store. Before iTunes, music had to be purchased from a CD store in the for of a CD. When purchasing an album you were given 10 to 15 songs by the same artist, leaving no option to purchase songs in an individually or purchasing a range of songs of your own preference combined in one CD. The iTunes store opened up the possibility of purchasing individual songs at a lower price instead of having to purchase the whole album. This also gave users the opportunity to purchase only the songs they preferred.
ReplyDeleteRelating this to the case the type of disruption was considered low end disruption and has lead to the current diminishing state of the CD market, with more artists providing there music for users at online music stores such as the iTunes music store.
The iTunes store caused a disruption to the market and has established a competitive advantage. The innovation of the iTunes music store lead to a whole new way of purchasing music and has left its mark on the music industry. It has changed the traditional way of purchasing music, making it more convenient for consumers to purchase and opening up the consumers for artists from a limited area to worldwide. The iTunes store was an e-commerce innovation that has proved very successful and also very disruptive to the music industry and the traditional ways of doing business.
A technology that has impacted on the postal service is the use of Email.
ReplyDeleteBefore email, people and organisations used to send mail through the postal service. Mail will take a couple of days to reach its destination which slowed down business processes. Now with the use of email, information can be sent to recipients within seconds.
Therefore email is a disruptive technology in the postal service. It would have dramatically changed the postal services business model as they would have had to come up with ways to compensate for the loses they have made from the emergence of the email technology.
Linking to the reading, I would say the type of disruption email would cause is a new market. This is because email is extending an existing service by offering an easier, faster and a much more cheaper way of sending mail. Anyone who has access to the internet can create an email account and start sending and receiving emails (without buying postage stamps) instead of physically posting mail through the postal service.
The most recent and disruptive technology shift that I have experienced in the last 5 years would have to be the emergence of touch based smartphones (such as the iPhone, Android phones and others) that are powerful, easy to use, relatively inexpensive, and most importantly, have mass market appeal. This technology has created new markets (specifically for apps and content) and destroyed markets that, only a couple of years earlier were blooming (who needs a dedicated GPS device anymore?).
ReplyDeleteThese devices are obviously replacing the traditional cell phone that people carry, but also affecting sales of portable media devices (such as iPods) to a similar extent. It is a commonly held belief that within a few years, all phones will be a "smart" phone of some sort, meaning this could be framed as an example of low-end disruption. I however, find the new market that has been created for apps, games and other content and services as both far more interesting, and likely a force that will cause much more long-term disruption.
One technology that is disruptive to the outdoor activity market is video games. In my early years I use to be more of an outdoor person, playing sports and biking etc, but since the creation of playstations, ipads, xbox, computers etc, now I don’t go outside as much as I use to. Kids are becoming more anti-social and unfit therefore being disruptive to the outdoor activity markets.
ReplyDeleteThis created a market in the entertainment industry. Games are becoming very popular around the world. It is so popular that it is very competitive and tournaments are held for certain games where they are able to win prize money. It is so competitive that a term has been created for such events called E-sports. From this, it is now disruptive to sports. Gaming compared to sports – it is very easy to pick up games and it is effortless to move a few fingers playing on a playstation or a computer compared to running around outside in the rain getting tired. Games can be played over the internet where thousands and thousands of players all over the world are all playing at the same time anytime of the day where in sports people have to organize where to meet and where to play etc, which ends up taking a lot of time to set up.
This has changed the younger generations of kids growing up and became disruptive to outdoor activities.
So I was going to do iTunes, but Shariza mentioned all the good stuff. Disruptive technology I use daily is as Singha mentioned email. Additionally online news (stuff.co.nz) has disrupted the media industry. I think what has a lot of impact in my uni interactions is USB. How awkward would that be walking with an external drive or better yet, a floppy disk!!
ReplyDeleteA disruptive technology that has had an impact is in online shopping and the fashion industry. ASOS the online clothes retailer for example has optimized on e-commerce trading. This has disrupted the fashion industry and had a major impact on tradition bricks and mortar stores. In contrast to these traditional fashion labels using internet based technology to advertise their product offering, ASOS has gone beyond by offering the purchasing independent/own label and branded fashion goods online. This also removes disintermediary and is strategic move maximise profit as there is an increase in e-commerce trading. Without doubt ASOS mergers disruptive technologies in its supply chain. The major disruption however in this industry is the sales strategy. What ASOS lacks in physical or tangibility it makes up with unique features such as cat walk videos, blog post and photos. These features that ASOS uses are disruptive technologies themselves. To further show the integration of disruptive technologies working together to provide the optimum of what information systems delivers is the ASOS mobile operating system and Facebook application. These technologies combined have impacted my response as a customer to the brand (loyal due the wide accessibility and user friendly options) and in an industry where tangibility is important, the wide connection of visual media has allowed me to overcome the hesitation of shopping online.
The rapid development of the internet and related technologies coupled with the expansion of e-commerce/business has enabled ASOS to emerge and explore new strategies and business models in a fast paced industry. For the future ASOS web-based strategy will have to keep up with innovations to retain the co-created unique value of their product offering and customer experience.
A disruptive technology that I have encountered would be Trade Me, the New Zealand online auction site. Trade Me disrupted to auction industry in New Zealand and changed the rules of the industry by making it online and operating 24 hours a day. I would say that trade me used an effective and strategic use of timing. This is because there were no online auction sites in New Zealand before Trade Me started. New Zealanders would have to sell the stuff through things like garage sales, news papers and conventional auctions.
ReplyDeleteThe changing nature of the economy also played a part in the success of Trade Me as more people started to go online when Trade Me was created. Trade Me used location to its advantage as there were online auction sites in places such as the US and Australia, but there were only little unknown auction sites in New Zealand. Trade Me also disrupted the way people can by things as Trade Me offers a vast range of things that can be brought online. The house market was one of the main things disrupted by Trade Me as people now reach a larger amount of potential buyers.
In January 2010 Apple announced the iPad. The iPad is a piece of technology which consists of characteristics that have ultimately caused disruption to numerous markets. The iPad provides a platform for users to have access to and purchase interactive e-books. Although e-books have been around for a while now as Amazon had introduced Kindle, the iPad provides a platform for interactive e-books.
ReplyDeleteThis innovation has disrupted the market for e-books and it has had a huge impact on both Kindle’s and Nook’s market shares. Both Kindle and Nook products do not accommodate for this feature. Essentially Apple has created a new market for interactive e-books which has transformed the reading experience as well as people’s lifestyles. Basically Apple has gained a competitive advantage over this new innovation. I believe this innovation relates to ‘new-market disruption’.
With this new innovation, Apple is attempting to attract and target non-consumers instead of low-end consumers. The organisation has created a new niche market by addressing a niche of people who currently do not consumer the traditional product such as Kindle or nook. The iPad has a natural form factor for reading as its touch screen provides users a way of interacting with the book i.e. zooming into images or interacting with diagrams or graphs. This innovation has also disrupted publishing companies as publishers such as Penguin have accommodated for this feature by embedding audio, video and streaming into their e-books.
I check my computer everyday for emails, Facebook, Trade Me and Westpac online banking. An example of a technology that has impacted on me is the Internet banking. Internet banking allows customers to conduct financial transactions on a secure website operated by their virtual bank. Internet banking is an example of dot.com disruption as new entrants enter the market, most established banks would be forced to react quickly by introducing the Internet as a new channel to complement other channels or set up separate internet only units to compete with the new entrants. It is impacting in competition with new entrants and customers who lack skills to maintain bank accounts. Many banks including Westpac effectively use the Internet as an additional channel to sustain their business model. However, some new entrants may focus on a limited number of products or adopt low-cost business models, which can take away customers from established banks. Some banks introduce the Internet as a sustaining innovation by setting up their own Internet only business units or by acquiring some of the Internet only new entrants. Also, due to the rapid growth of technology, many banks are now developing particular mobile baking to continue to develop and change over time.
ReplyDeleteA system that has impact brick and mortar stores would be Amazon- the e-retailer giant. Before Amazon- people would visit the stores, spend a lot of time looking for the item they wanted, which would take even more time if the item was out of stock, visit other stores to find the best deals and deal with the shipping aspect.
ReplyDeleteThen Amazon came in- all the above were available with just a few clicks of the button. There are other advanced options such as user reviews and discussions and further suggestions on similar items bought by customers. This along with lower prices due to the savings made through less real estate costs made Amazon increasingly popular.
Amazon would be an example of a low end disruption model. Using its website Amazon.com to sell books online wasn’t a high end service offer to high margin customers, instead it targeted the price savy, low margin customers who were looking for good deals- eventually it started taking away customers from established brick and mortar stores like Barnes and Noble. Its additional features such as the customer reviews and recommendation functions though were almost like sustaining innovations- something that normal bookstores couldn’t offer straight away. Through this combination- it attracted a huge customer base who could enjoy the convenience of buying things with a few clicks of button, compare prices without having to go into physical stores and even assess quality for themselves from other customer reviews.
As Philip has discussed, one disruptive technology which has emerged in the accounting industry is Xero, an online accounting software service targeting small and medium enterprises (SMEs). Not only are most rivals such as MYOB hard to work with, but most SME’s don’t have the training to fully utilise such accounting software. Xero, with its free updates and unlimited support is a great help for SME’s who want something that is easy to use. One example which shows this is that the increase in GST from 12.5% to 15% was automatic on Xero, while very frustrating for MYOB or QuickBooks customers.
ReplyDeleteXero has also changed the traditional relationship between the business, the accountant, and the accounting software. Xero is able to bridge the gap between the business and their accountant because Xero is accessible from any web-enabled computer, and even offers products such as Xero Partner Edition which facilitate communication between a business and their accountant.
Xero has shown disruptive innovation with respect to rivals such as MYOB or QuickBooks because their service offering easy to use, offers integration with users’ banks, and uses a subscription sales model which means that users do not need to spend large sums of money to purchase the software.
Xero’s accounting software is also low end disruption because although rivals offer far more options such as CRM and POS services, most of Xero’s customers do not require these services. However, where these services are required, Xero has API’s available that has allowed third parties to integrate their service with Xero. (See: http://www.xero.com/accounting-software/add-ons/).
Xero’s business strategy has also displayed incremental disruption. As Philip said, Xero originally had no inventory management. Xero also had limited integration with a small number of banks and no tax services. However, since Xero’s introduction, they have either improved, developed, or collaborated to ensure that the range of services available with rival products is also available to their customers.
The situation that has affected me the most is the one at work. I use the system on a dailyish basis. The system at my work has been changed in accordance with how other systems in competitors are being used. the main changes are in terms of the security and processes of the system
ReplyDeleteThe security of the system has been one thing that has changed the most. Generally when a order needed to be corrected it was a simple two second step that had no authentication. Now like most competitors, it is authenticated and logged each and every time a correction is done. this step now takes about ten seconds and is apart of a transaction that should only be a minute long.
This new trend in authentication is based on reducing human error however, before a correction is done, it makes sure the correct item is chosen, and is being corrected by the right person. Also more human processes are being adopted by the till itself to reduce human error especially in terms of Eftops, where the employee lets the till and customer process it.
This business strategy however has proven to show that customers are efficiently getting their orders correct as a cost of speed, but is a long term satisfaction.
The Changes to the clothing industry over the last 15 years has affected the way that I shop greatly. With the implementation of systems allowing consumers to search for a greater range of products at a greater range of prices there has been a large amount of disruption to pre existing markets.
ReplyDeleteLocal clothing manufacturers and retailers are losing business to the overseas producers due to consumers being able to purchase clothes from overseas which 15 years ago they did not have the ability to do.
This disruption has however, created an entirely new market for clothing in the internet. With new firms emerging solely to compete online and not requiring a physical store they can cut costs and give customers a greater range of choices.
(Note, I attempted to post this last night at 8pm but google accounts were not allowing me to log in.