McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved

UNIT FOUR

Building Innovation

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UNIT FOUR

• Chapter Thirteen - Creating Innovative Organization

• Chapter Fourteen - Ebusiness

• Chapter Fifteen - Creating Collaborative Partnerships

• Chapter Sixteen - Integrating Wireless Technology in Business

McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved

CHAPTER 13

Creating Innovative Organizations

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LEARNING OUTCOMES

13.1 Compare disruptive and sustaining

technologies

13.2 Explain how the Internet caused

disruption among businesses

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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

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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

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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

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Disruptive Versus Sustaining Technology

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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

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Disruptive Versus Sustaining Technology

• Companies that capitalized on disruptive technology

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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

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Disruptive Versus Sustaining Technology

Internet penetration by world region

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Disruptive Versus Sustaining Technology

• World Internet Users

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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

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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

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Evolution of The World Wide Web

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Evolution of the World Wide Web

• The Internet’s impact on information

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Evolution of The World Wide Web

• File formats offered over the WWW

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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

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Web 2.0

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

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Web 2.0

• Timeline of Web 1.0

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The Future – Web 3.0

• Semantic Web encompasses the following:1. Transforming the Web into a database

2. An evolutionary path to artificial intelligence

3. The realization of semantic Web and SOA

4. Evolution toward 3D

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CHAPTER THIRTEENOpening Case Study Questions

1. Do you believe the Ironman has used disruptive technology to change the way athletes participate in sports? Why or why not?

2. What types of Web 2.0 technologies could WTC use on the Ironman.com website?

3. What types of ethical dilemmas might WTC face in deploying real-time video over the Internet?

4. What types of security issues does WTC need to address?

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CHAPTER THIRTEEN CASEFailing 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

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CHAPTER THIRTEEN CASE QUESTIONS

1. If these companies all had a first-mover advantage, then why did the products fail?

2. For each of the above determine if the technology used was disruptive or sustaining.

3. Choose one of the products above and determine what the company could have done to prevent the product from failing.

4. Can you name another technology product that failed? Why did it fail? What could the company have done differently for it to succeed?