Innovation: The commercialization of a new concept or idea.Incremental Innovation: innovations that improve a product or a service, usually within an existing market, in ways that customers expect. (e.g. fuel injection engines)Disruptive Innovation: innovations that provide a discontinuous leap in the value proposition to the customer. (e.g. the automobile)
Released Globally in 30 countriesGenerated over $ in sales
While there are many fascinating angles to analyze Avatar’s innovationWe are going to focus on three key areas
Most pirated/downloaded of all timeDRM – how to protect intellectual property
3d camera to disruptiveCameron took almost a decade off between Titanic and Avatar to develop his dream for 3DThe Fusion Camera was modeled after the eyes capturing two perspectives simultanousCameron also created new cameras, new screens, new soundstagesNew Animation System allowed for actor to avoid lengthy makeup but also do more than read a script. Cameron’s perfomance capture system allow actors to truly act despite a largely CGI or animated products
Film in 3D rather than convert to 3D. Camera mimic’ed an eye – triangulation. Resulted in better 3D image. The camera was in front of the actor’s faceThe entire studio was a motion capture stage, Cameron could see the actors moving around in pandora rather than in front of a blue screen.
Social Issues have historically led the creation of Movies (Holocaust, Domestic Violence, war)But Avatar was creating/expanding that eco-system where the movie-making process can impactSocial issues (like the Amazonian Rainforst or Thai Oragutans).Completing the circle of social action inspiring film to film inspiring social action Alberta’s tar sands: http://www.hollywoodreporter.com/hr/content_display/world/news/e3i2d2992c8dfe0a8980627f95bd17d0c89Palestine: http://celebrifi.com/gossip/Palestinian-Protesters-Find-Inspiration-In-Avatar-1568373.htmlhttp://pulsemedia.org/2010/05/04/avatar-in-the-real-world-james-cameron-on-indigenous-struggles/Orangutan (Jakarta) http://scifiwire.com/2010/02/latest-avatar-inspired-political-protest-save-the-apes.php
Be faster hereInefficiencyBelo Monte will also be one of the most inefficient dams in the history of Brazil, producing only 10% of its 11,233 MW installed capacity between the months of July and October-- 1,123 MW--, and an average of only 4,419 MW throughout the year, or 39% of its nominal capacity. As such, the government would need to construct additional dam reservoirs upstream to guarantee a year-round flow of water. The subsequent dams would directly and indirectly affect 25,000 indigenous peoples in the entire Xingú basin, flooding more forest with an added 6140km2 of reservoir.
AskAnimate for each circle
Multiple product lines – two sequels, websites, video games, merchandise3D technology – Avatar sets a new standard for blockbuster movies, strengthened 3D as a platform unto itselfSocial Innovation – transfer of Avatar’s brand equity to a given social cause.Disruptive/Incremeental: Avatar was composed mostly of the former, but it also had good doses of the latter.
Avatar - A study on Innovation
What is a disruptive innovation?<br />
Case Study Exercise <br />Turn over the sheets of paper in front of you<br />Spend a minute considering:<br />________ is a disruptive innovation <br /> because it /she/he ______ .<br />
“I had the feeling coming out of this movie that I haven’t felt since 1977.”<br />“There is still at least one man in Hollywood who knows how to spend $250 million, or was it $300 million, wisely.”<br />“It’s the iPhone of the movies!”<br />
Avatar as Innovation:<br />Disrupting the Film Industry<br />Sushma Sheth, Aziz, Rehmatullah<br />Anirudh Oswal, Daniele Vicente, Bruce Jang<br />
Innovation: Two Types<br />Incremental Innovation: a predictable improvement<br />Disruptive Innovation: a discontinuous leap<br />
So what?<br />Why do we care about disruptive innovation?<br />It’s cool. <br />It’ll make us rich and well-respected. <br />It’s the natural way to leverage our big, expensive MBA brains to add value to our teams, projects, and organizations. Yeah.<br />
3D Movies<br />3D Televisions<br />3D Video Games<br />Hybrid Movie Camera<br />The Volume – Movie Studio<br />Performance Capture<br />Avatar Fashion<br />3D Make Up<br />Avatar Jewelry<br />Pandora Furniture<br />Avatar Inspired Nature<br />Avatar Tourism<br />NBA Player Development<br />3D Headaches<br />Post-Avatar Depression<br />Binocular Vision Disorder<br />3D Porn<br />Avatar Activist Guides<br />Environmental Campaigns<br />Na’vi Language Courses<br />Na’vi Community Forums<br />
Three key areas of Focus<br />Financial<br />Technological<br />Social<br />
Assess Avatar Focus Area by <br />where ?<br />what were the benefits?<br />where<br />what was disrupted? <br />what was the broader impact?<br />Were there incremental innovations? <br />Were there disruptive innovations?<br />
Financial Innovation<br />Ludicrously massive financial success<br />Highest grossing movie of all time ($3B)<br />Broke Blu-Ray sales records of 2.7m in 4 days.<br />Raised the price point for movie tickets<br />From $10 to $14 for 3D, and $16 for IMAX 3D <br />Incremental: - Willingness to increase costs of production <br /> - New capital costs for theatres<br />Disruptive : - Premium product priced above IMAX and 2D<br /> - James Cameron’ intended to shift the balance of powers within the industry<br />
Technological Innovation<br />James Cameron is considered “part Scientist, part Artist” – developed new 3D movie making technology<br />Revolutionary 3D Fusion Camera System modeled after the eye<br />Performance Capture Animation<br />Incremental : - 3D Fusion Camera System <br /> - Performance Capture Animation<br />Disruptive: <br /> - 3D : A renewed and exploding Platform<br />
Case Study<br />Eye-modeled Camera<br />Movie Studio = Giant Computer Screen<br />Boost camera attached in front of actor’s face<br />
Social Innovation<br />James Cameron<br />Visits to Brazil’s Amazon and Alberta’s tar sands<br />Social Action inspired by Avatar<br />The Avatar Project: a program to support military amputees<br />Avatar-themed Palestinian protests<br />Avatar-themed protests in Jakarta to protect orangutans<br />Incremental: Using Fictional stories to inspire social action.<br /> Coordinating social action with existing organizations & movements<br />Disruptive: Avatar’s scale and power have inspired grassroots social action across the globe. It’s a platform.<br />
Case Study: The Amazon Rainforest<br /><ul><li>Protesting the Belo Monte Dam in Brazil
It will dry up 60 miles of the Xingu River, displacing at least 20,000 indigenous people.
Cameron has visited several times, drawn media attention, pressed for a meeting with President Silva</li></li></ul><li>Who Said?<br />“One life ends…another begins.”<br />
BA: Before Avatar<br />AA: After Avatar<br /><ul><li> Digital Imaging
Movie goers paying more</li></li></ul><li>Was Avatar Incremental or Disruptive?<br />Our Definition:<br /> A Discontinuous leap in Value Proposition<br /> to the customer.<br />YES.<br />But, it wasn’t just disruptive. It was also incremental.<br />
Insights from Avatar<br />Increased value capture and raise willingness to pay<br />Foster industry wide changes and shift the balances of forces<br />New platforms can be a win for innovator and the industry<br />Successful innovations have incremental and disruptive elements<br />Innovation can accelerate adoption of a old technology<br />Brand Equity can be built and extended via social change<br />Global launch can leverage technology and amplify buzz & adoption<br />
Questions to Consider<br />What’s the right proportion of incremental and disruptive innovations within a project, team, or organization? <br />What are the skills you need to drive incremental and disruptive innovations? Can the same people/team do both at the same time? <br />What other industries might the lessons from Avatar apply to? <br />
Interesting Tidbits<br />3D Porn<br />Avatar has inspired Hustler Studios and Playboy to make 3D porn. Aw yeah.<br />James Cameron offered his 3d-enabled submarine to BP to help with undersea repair efforts in the Gulf of Mexico. <br />“Avatar: The Game” has sold 2.7 M copies – making it a big hit – even though most agree that the game is pretty crappy.<br />