bu111 technological factors

elements of technology (PEST)

internet, information technologies, materials and equipment

5 industries changed by tech

music, travel, transportation, publishing, retail

complementary goods

goods and services that enhance the value of the product and service you're selling

technology standard

enables compatibility of complementary good

installed base

number of users

network effect

value increases as user base grows

vicious/virtuous cycle

availability of complementary good, attractiveness to users, number of users, attractiveness to producers of complementary good

solutions for virtuous/vicious cycle

compatibility, partnerships, incentives for complementary goods suppliers, build base

lock-in

extent to which a customer is committed to a product or service

big data and analytics

collection and analysis of large amounts of data

big data and analytics - benefits

deeper insights, better and faster decisions, predictive capabilities, foundation of AI and machine learning

big data and analytics - use examples

customization, automation, optimized operations, personalization

e-commerce

online research and shopping

omnichannel

seamless experience between platforms, online and physical experience

ecommerce and omnichannel benefits

enhanced marketing and service, improved efficiency, higher margins

ecommerce and omnichannel use examples

customization, optimized operations, automation

VR/AR

replicates an environment or maps over reality

VR/AR benefits

experience without purchase or proximity, reduced cost, enhanced experience

VR/AR use examples

virtual try on, animated objects and videos, experiences and enhanced products

current business tools

big data and analytics, virtual and augmented reality, ecommerce and omnichannel

future business tools

blockchain, autonomous machines

blockchain

distributed ledger that ensures accuracy and security of data

blockchain - challenge

requires many participants on one platform

autonomous machines

increases automation

autonomous machines - challenge

requires precise programming and anticipation of all possibilities

opportunities of tech

products (innovation, uniqueness, value), improved information use (access and sharing), competitive advantage and barriers to entry, customization

threats of technology

imitation, new tech and new entrants, information overload and security, disconnected employees and customers

4 types of innovation

disruptive, architectural, modular, sustaining

what is sustaining innovation

improves existing products in expected ways

who's the target of sustaining innovation

mainstream, high-margin customers with enhancements in product functionality

disruptive innovation

different performance attributes not valued by mainstream

target for disruptive innovation

starts in lower performance segment, improves rapidly, enters mainstream market

example of disruptive innovation

calculator vs slide rule

example of modular innovation

digital camera vs film camera

example of architectural innovation

desktop computers vs IBM mainframes

example of sustaining innovation

stabilizing feature added to digital cameras

how to avoid failure?

monitor outside of industry, partner with young firms, establish venture units, design by job not customer