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Look Innovationinmedia

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Innovative Media

Innovative Media

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  • Transcript

    • 1. Innovation in media
        • Hugh Look
        • Senior Consultant
        • Rightscom Ltd
    • 2. Any story about innovation has to begin somewhere: digital media circa 1979
    • 3. Innovations
    • 4. Lots of interesting innovations, BUT….
      • We are often too concerned with innovations
        • As opportunities
        • As threats
        • As puzzles
      • And not enough with innovation itself
    • 5. Innovations…or innovation?
      • The digital media sector is full of highly creative people
        • But is creation the same as innovation?
      • How could digital media study innovation as a principle?
        • Can we see any underlying forces driving innovations?
        • How do we organise at enterprise level to deal with them effectively?
        • How do we organise at the sectoral level?
      • Some achieve innovation
        • … and others have innovation thrust upon them
      • Developing the capacity to deal with both
    • 6. Schumpeter’s 5 types of innovations
      • Introduction of a new product or significant change in an existing product
      • Process innovation (new to an industry)
      • Opening of a new market (mainly in the geographic sense)
      • Development of new sources of supply for raw materials or components
      • Changes in the way an industry or companies are organised
      • Schumpeter did not allow for marketing or business model innovation
    • 7. Innovation can be found at many levels
      • The creative individual or team
      • The enterprise
      • Sectoral innovation
      • Social innovation
      • Innovation often begins globally, but has most effect locally (within individual enterprises)
      • It’s deploying innovation that is hard
    • 8. Systemic problems in innovation
      • Infrastructure provision and investment problems
        • Including network infrastructure
      • Transition problems
        • Firms encounter technological problems or face changes that exceed their current capabilities
        • The transition from one paradigm to the next involves a high degree of uncertainty
      • Lock-in problems
        • Derived from socio-technological inertia, hampering the emergence and dissemination of more efficient technologies
        • May prevent the firms from foreseeing the emergence of new technological opportunities
      • Hard and soft institutional problems
        • Formal rules (regulations, laws)
        • Social & company culture
    • 9. Systemic problems in innovation (2)
      • Network problems
        • Links in the network too weak or too strong
        • Blindness to the world outside the network
      • Capability and learning problems
        • Insufficient human/organizational/technological competences of firms
        • Limits capacity to learn & adopt or produce new technologies
      • Unbalanced exploration-exploitation mechanisms
        • Can generate ideas but not able to choose well
        • Or can make choices but cannot generate ideas
      • Complementarity problems:
        • Competences of the system do not complement one another
        • Competences not well-connected
    • 10. Systemic problems in innovation (3)
      • In other words, almost all the systemic problems are about implementation or deployment, not innovation itself
    • 11. Media concerns
      • We interviewed a range of European publishers in spring 2006 for the European Commission
      • Little evidence of “disruptive technology” thinking
      • Much more evidence of “disruptive innovation” thinking – encompasses business model changes, new legacy-free competitors, changes in roles between publisher and audience
      • Companies very concerned with how their internal cultures could adapt successfully:
        • Skills were the key issue
        • Continuous deadlines versus print publishing cycle
        • Handling different media types (video, audio)
        • Conceptualisation and monetisation of value added services for online, mobile, IPTV
        • Managing content assets efficiently
      • Major barriers seen as social, legal or economic – not technical
    • 12. Models of innovation
      • Invention/creativity based
        • Often accidental
        • Easy to get confused between innovation and creativity in media enterprises
      • “ Systems of innovation” (Malherba)
        • Economic policy approach
        • Helps to understand innovations coming from outside the sector
      • Network models
        • “ Recombinant innovation” (Hargardon)
        • “ Horizontal innovation networks” (von Hippel)
      • “ 4-D” (Christensen et al)
        • More sophisticated version of the familiar radical/incremental model
      • Each has its value for analysis and implementation
    • 13. The 4-D classification
      • Displacement
        • Incremental sustaining innovation that can occur when new entrants change a part of the value network that is not interdependent with many other parts; does not replace incumbents
        • Example: desktop publishing software replaced phototypesetting, but did not change publishing itself
      • Distraction
        • Incremental sustaining innovation that can occur when incumbents change inter-related parts of the value network
        • Example: radio replay websites do not create opportunities for new entrants to capture audience
    • 14. The 4-D classification (2)
      • Discontinuity
        • Radical, but still sustaining, innovation that is controlled by the incumbents and affects most or all of the value network
        • Example: shift to digital TV, SMS
      • Disruption
        • Radical innovation that disrupts rather than sustains, as it allows new entrants to replace incumbents
        • Example: the rise in user-generated content in all its forms creates new audience interest and displaces significant areas of media content; new entrants command this activity and many traditional media enterprises lack the skills to enter
    • 15. Discontinuous vs disruptive innovations
      • What makes a technology or innovation “disruptive”?
        • It shifts the balance of power between users, suppliers and all the others in the value chain
        • Was SMS discontinuous or disruptive?
      • Who is disrupted?
        • Incumbents?
        • New entrants?
        • Users?
      • What disrupts an incumbent may sustain a new entrant
    • 16. Disruptive innovations: some examples
      • Email
      • SMS
        • Both gave users an alternative to speech
      • Japanese motorcycles
      • Digital downloaded music
        • The “track” economy is highly disruptive of the business model
        • Digital technologies may enable bundled pricing (journals) or dissolve it (music)
    • 17. Christensen’s theory of why incumbents lose out to disruptive innovators
      • They are too good at meeting the needs of their customers
      • They (and their customers) dismiss innovations that are worse in features and performance
        • Typically originated by outsiders
      • Their enterprise is designed for incremental innovation
      • The entrants find a new market with unmet needs at a much lower price point
      • Gives a base for relentless incremental improvement
        • Carried out very effectively within tight constraints
        • No legacy market to protect
      • The incumbents wake up to find the tanks on the lawn
    • 18. Possible cases
      • Blogs
      • Podcasts
      • Mobile video
      • Creative Commons
      • Google Adwords
      • … ?
    • 19. Examples of innovations that show an emerging pattern of value-chain disruption
      • Creative Commons
      • Open Source Software
      • Collaborative development
      • Social networking
        • Flickr
        • YouTube
      • Blogging
      • Decline in conventional advertising-driven business models
      • Folksonomies and tagging
    • 20. Traditional media value chains
    • 21. An alternative: a value cycle
    • 22. Innovation in production as well as consumption
      • New models of production
        • Neither individuals, not chain of command firms
      • Complex projects
      • Real-world applications
      • Emerging from a network environment
        • Artefact of circumstance?
        • Only possible once the network was there?
        • Inevitable consequence of the network?
    • 23. Innovation in production
      • Linux
        • Huge, complex project
        • Robust
        • Depends on culture/mindset as well as rules
      • Slashdot
        • Review/moderation authority & reputation management; “karma” (automated)
      • Xerox : Eureka
        • Mundane application, effective
        • Says something very interesting about when a product is “complete”
        • Inflicts some serious damage on concepts of authority
    • 24. Advantages
      • Costs less
      • Often faster
      • More robust
        • Problems are analysed and fixed very quickly
      • Transparent
        • You can “see how it’s done”
      • More ethical?
    • 25. Where do you find value in a networked world?
      • At the periphery - closest to the user, where specialist expertise is needed and relationships developed
        • Control of the user interface
        • Individualised experiences
        • Small, precise “datapoints”
      • At the core - where the shared infrastructure and expertise is
        • Generic
        • Benefit from scale
        • Content frameworks
      • Not in the middle
        • Process and pipeline operators
    • 26. How do we innovate?
      • What comes from outside?
      • What comes from inside?
      • What is driven by competition?
      • How much innovation is just “more of the same”?
      • How do we recognise what is going to succeed?
    • 27. Tools for understanding & managing innovations
      • Immersion
      • Scenario planning
      • Delphi method
      • Deviance-watching
      • “ Low probability/high risk” alerting
      • “ No threat” alerting
      • Organisational architecture and culture
    • 28. Our responsibilities?
      • To take care of the physical safety and mental well-being of our staff
      • To prepare for new cultures
      • To complete the work for mourning for the cultures that are passing
      • Where might we fail?
        • To betray our people by denying or obstructing change
    • 29. Thank you - and I wish you a successful rebirth
      • Hugh Look
      • Senior Consultant
      • Rightscom Ltd
      • [email_address]
      • www.rightscom.com

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