The BIG e 2011 - Disruptive Innovation

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The BIG e presentation by Bob Hale, HAR President and CEO on Disruptive Innovation. …

The BIG e presentation by Bob Hale, HAR President and CEO on Disruptive Innovation.

What do we know about the consumer? What are their expectations? How do we enhance their experience? How are they changing every industry? Today the consumer is empowered more than ever, learn how to surpass their expectations and be the professional that they need.

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  • 1. A process by which a product or service takes rootinitially in simple applications at the bottom of a marketand then relentlessly moves ‘up market’, eventuallydisplacing established competitors.An innovation that is disruptive allows a whole newpopulation of consumers access to a product or service.
  • 2. $12 Billion $16 Million$93 Billion $655 Million$362 Billion ?
  • 3. In 1965, AMA had 75% market share of all doctors, today 19% market share. Specialization Disrupts Generalization
  • 4. • ½ of MLS subscribers in Seattle are no longer REALTORS®• ½ of MLS subscribers in Atlanta are no longer REALTORS®
  • 5. Changing Consumer Expectations• Everything on Demand – Xfinity, Pandora, Netflix, Amazon• Privacy – Young People Dont Care o Their life is on Facebook, Twitter• By December, Facebook will have 1 Billion members• Ego Generation – how many friends you have, how many likes, how many followers• Reviews – IMDb rates movies, Yelp, Trip Advisor, Angies List, Zagat, Edmonds for car• Y Generation – no voice mail, no land lines, no email, watch TV but not on the TV
  • 6. 63% + Under 45 years of Age42% + Under 35 years of Age
  • 7. 50% of Home Buyers Are First Time Buyers
  • 8. 20% Under 40 & 40% Over 65
  • 9. 54%
  • 10. 81% Will Benefit
  • 11. Is Home Ownership being deferred to rental life styles?
  • 12. Generation Rent: The $11 Billion Commission Shift by 2015 • 463,000 lost home sales or about $4.2 Billion in lost commissions. • 150 Million leases will be signed, worth $6.8 Billion in commissions. • If a brokerage offers only sales, $11 Billion in commissions will be out of reach. • How will members market to the “Gen Rent”?
  • 13. June 2011 Hitwise Report Rent.com Apartment Guide Apartments.com ApartmentRatings.com www.apartmentdata.com Apartment Home Living 6 of the top 18 sites viewed by Houston Area consumers are related to rentals.
  • 14. HP keeping up in the changing Tech Industry • Will HP, the “King of PC Sales”, spinoff its PC business? • Will HP shutdown its tablet and smartphone operations?
  • 15. Rent nightly from real people in19,716 cities in 196 countries. Airbnb.com – Air mattresses and donuts Listings worldwide from a room to a home Implications for hotels and real estate?
  • 16. • What action did the Slide Rule Association take at their national convention to address disruptive innovation in the form of handheld calculators?• They voted to take drastic action & created a leather pouch for slide rules as their competitive advantage.
  • 17. • Mobile• Social• Ratings & Reviews• Videos
  • 18. • Mobile – Disrupts traditional websites• Now more minutes are spent searching the web on apps than browsers o Google Android – 150,000 apps – 2 Billion downloads o Apple – 425,000 apps – 15 Billion downloads• 1/2 of all searches will be via mobile devices within a year• HAR has member and consumer apps for iPad, iPhone & Android & Mobile Internet HTML5 solution for all smart phones• Location Based – Find Homes Nearby, Open Houses Nearby, Rentals Nearby• Agents may view all MLS listings on mobile o Check their leads o Edit their listing’s status and price o See "agent only" information
  • 19. Real Estate Apps - National Search
  • 20. AppStore – Local App Search
  • 21. Android Market – Local App Search
  • 22. Apps forMLS Subscribers
  • 23. Apps forConsumers
  • 24. 800 Million Users3 Billion videos areviewed a day200 Million Users
  • 25. HAR PowersYour Listings on Your Facebook Business Page
  • 26. HAR TweetsYour Listings87,000 Tweets
  • 27. HAR Promotes Your Social Presence
  • 28. HAR ProvidesMembers SocialMedia Training
  • 29. 140,000 Views - Agent/HAR Videos88,000 Views - Listings Videos HAR Promotes Your Video Profile & Listings on YouTube
  • 30. Find the most active real estate agentsOnline tool aids consumers in shopping for RealtorApril 27, 2010 By Matt CarterInman News Another agent match site for consumers thats taking a data- driven approach, NeighborCity.com, is trying an even more ambitious tack, building an algorithm that takes into account factors like how well agents do in negotiating on behalf of their clients. Cardella said Friday he couldnt wait to see HARs Realtor Match, "but I think the problem with an MLS providing this technology is its like the wolves guarding the sheep.“ An MLS, Cardella said, "Will always be stuck in the political quandary of the agent vs. the consumer, and the agent will always win because they are the ones paying the fees."
  • 31. 70,000 Ratings
  • 32. 3,556 Agents have Surveyed Clients 4.93/5.00Total Surveys Sent to Clients 102,448 (49% Response)
  • 33. Chicago Quarterly Market Ranking - 12 weeks ending 8/27/11 Column1 Websites Visits 1 Realtor.com 7.95% 2 Yahoo! Real Estate 7.69% 3 Zillow 5.89% 4 Trulia.com 5.35% 5 Homes.com 2.67% 6 Rent.com 2.62% 7 Redfin 2.18% 8 AOL Real Estate 2.00% 9 Midwest Real Estate Data LLC 1.78% 10 ZipRealty 1.72% 11 Apartment Guide 1.68% 12 Apartments.com 1.60% 13 RE/MAX Northern Illinois 1.56% 14 MSN Real Estate 1.48% 15 MyNewPlace 1.43%
  • 34. Houston Quarterly Market Ranking 4 weeks ending 8/27/11 Colum Websites Visits n1 1 HAR.com 26.74% 2 Yahoo! Real Estate 6.84% 3 Trulia.com 4.10% 4 Realtor.com 3.49% 5 Zillow 3.15% 6 Homes.com 2.69% 7 Apartment Guide 1.90% 8 Rent.com 1.87% 9 ZipRealty 1.64% 10 Apartments.com 1.54% 11 MSN Real Estate 1.50% 12 LoopNet 1.33% 13 ApartmentRatings.com 1.32% 14 AOL Real Estate 1.25% 15 MyNewPlace 1.01%
  • 35. MLS Consumer Websites:It’s Not Just HAR.com Anymore 779,450 Agents Belongs to MLSs w/Public Websites
  • 36. 2010 – Broker/Agent Listings Viewed 145,881,434 Times
  • 37. 2010 – 438,782 Email Leads to Brokers/Agents
  • 38. 2010– Broker Phone# was Clicked 419,222 times
  • 39. 2010– Click-Thrus from HAR.com to Broker/Agent Websites 2,724,954 Times
  • 40. $5.012010– Click-Thrus from HAR.com to Broker/Agent Websites 2,724,954 Times $3.00 x 2,724,954 = $8.18 Million
  • 41. Key Characteristic of anInnovative Disruptor is Providing Consumers What They Want
  • 42. Not Listing Agent
  • 43. Disruptive Innovation Uber app-town cars, taxi Assn tried to stop it, 10 seconds fordriver to accept, passenger rates driver & driver rates passenger, $10 fee if passenger is a no show
  • 44. Zillow• Top 1, 2 or 3 sites according to Hitwise and ComScore in almost every market in the US except Houston• Ratings of agents o Over 70,000 agent reviews by consumers• Source for housing articles in Wall Street Journal and USA Today• Achieved $1 Billion market cap• 1/2 of agent leads may not be responded to• Zillow gives consumers what they want• Zillow is Innovative
  • 45. By only pursuing “sustaining innovations”that perpetuate what has historically helpedthem succeed, companies unwittingly openthe door to “disruptive innovations”.
  • 46. when a Danish passenger ferry was convertedinto a radio station.