Innovation in media <ul><ul><li>Hugh Look </li></ul></ul><ul><ul><li>Senior Consultant </li></ul></ul><ul><ul><li>Rightsco...
Any story about innovation has to begin somewhere: digital media circa 1979
Innovations
Lots of interesting innovations, BUT…. <ul><li>We are often too concerned with innovations </li></ul><ul><ul><li>As opport...
Innovations…or innovation? <ul><li>The digital media sector is full of highly creative people </li></ul><ul><ul><li>But is...
Schumpeter’s 5 types of innovations <ul><li>Introduction of a new product or significant change in an existing product </l...
Innovation can be found at many levels <ul><li>The creative individual or team </li></ul><ul><li>The enterprise </li></ul>...
Systemic problems in innovation <ul><li>Infrastructure provision and investment problems </li></ul><ul><ul><li>Including n...
Systemic problems in innovation (2) <ul><li>Network problems </li></ul><ul><ul><li>Links in the network too weak or too st...
Systemic problems in innovation (3) <ul><li>In other words, almost all the systemic problems are about implementation or d...
Media concerns <ul><li>We interviewed a range of European publishers in spring 2006 for the European Commission </li></ul>...
Models of innovation <ul><li>Invention/creativity based </li></ul><ul><ul><li>Often accidental </li></ul></ul><ul><ul><li>...
The 4-D classification <ul><li>Displacement  </li></ul><ul><ul><li>Incremental sustaining innovation that can occur when n...
The 4-D classification (2) <ul><li>Discontinuity </li></ul><ul><ul><li>Radical, but still sustaining, innovation that is c...
Discontinuous vs disruptive innovations <ul><li>What makes a technology or innovation “disruptive”? </li></ul><ul><ul><li>...
Disruptive innovations: some examples <ul><li>Email </li></ul><ul><li>SMS </li></ul><ul><ul><li>Both gave users an alterna...
Christensen’s theory of why incumbents lose out to disruptive innovators <ul><li>They are  too good  at meeting the needs ...
Possible cases <ul><li>Blogs </li></ul><ul><li>Podcasts </li></ul><ul><li>Mobile video </li></ul><ul><li>Creative Commons ...
Examples of innovations that show an emerging pattern of value-chain disruption <ul><li>Creative Commons </li></ul><ul><li...
Traditional media value chains
An alternative: a value cycle
Innovation in production as well as consumption  <ul><li>New models of production </li></ul><ul><ul><li>Neither individual...
Innovation in production <ul><li>Linux </li></ul><ul><ul><li>Huge, complex project </li></ul></ul><ul><ul><li>Robust </li>...
Advantages <ul><li>Costs less </li></ul><ul><li>Often faster </li></ul><ul><li>More robust </li></ul><ul><ul><li>Problems ...
Where do you find value in a networked world? <ul><li>At the periphery - closest to the user, where specialist expertise i...
How do we innovate? <ul><li>What comes from outside? </li></ul><ul><li>What comes from inside? </li></ul><ul><li>What is d...
Tools for understanding & managing innovations <ul><li>Immersion </li></ul><ul><li>Scenario planning </li></ul><ul><li>Del...
Our responsibilities? <ul><li>To take care of the physical safety and mental well-being of our staff </li></ul><ul><li>To ...
Thank you  - and I wish you a successful rebirth <ul><li>Hugh Look </li></ul><ul><li>Senior Consultant </li></ul><ul><li>R...
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Innovative Media

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  • Look Innovationinmedia

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

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