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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The BIG e 2011 - Disruptive Innovation
1. A process by which a product or service takes root
initially in simple applications at the bottom of a market
and then relentlessly moves ‘up market’, eventually
displacing established competitors.
An innovation that is disruptive allows a whole new
population 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®
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7. Changing Consumer
Expectations
• Everything on Demand –
Xfinity, Pandora, Netflix, Amazon
• Privacy – Young People Don't 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, Angie's List, Zagat, Edmonds for car
• Y Generation – no voice mail, no land lines, no
email, watch TV but not on the TV
8. 63% + Under 45 years of Age
42% + Under 35 years of Age
17. 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”?
18. 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.
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26. 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?
27. Rent nightly from real people in
19,716 cities in 196 countries.
Airbnb.com – Air mattresses and donuts
Listings worldwide from a room to a home
Implications for hotels and real estate?
28. • 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.
29. • Mobile
• Social
• Ratings & Reviews
• Videos
30. • 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
44. 140,000 Views - Agent/HAR Videos
88,000 Views - Listings Videos
HAR Promotes Your
Video Profile &
Listings on YouTube
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47. Find the most active real estate agents
Online tool aids consumers in shopping for Realtor
April 27, 2010 By Matt Carter
Inman News
Another agent match site for consumers that's 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 couldn't wait to see HAR's Realtor
Match, "but I think the problem with an MLS providing
this technology is it's 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."
92. Disruptive Innovation
Uber app-town cars, taxi Assn tried to stop it, 10 seconds for
driver to accept, passenger rates driver & driver rates passenger,
$10 fee if passenger is a no show
93. 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
94. By only pursuing “sustaining innovations”
that perpetuate what has historically helped
them succeed, companies unwittingly open
the door to “disruptive innovations”.
95. when a Danish passenger ferry was converted
into a radio station.