Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
Disruptive Innovation - Bob Hale
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®
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.
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
Google Android – 150,000 apps –
2 Billion downloads
Apple – 425,000 apps – 15 Billion
downloads
• 1/2 of all searches will be via mobile devices within a year
82. 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
83. • 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
84. Internet Information provider that
we call “Desired Monopolies.”
Well, your average realtor (we interviewed several as part of our
research for this report) doesn‟t quite “hate” Zillow, but the
realtor-Zillow relationship is complicated. Realtors generally
admire Zillow‟s web site and its ability to efficiently (and prettily)
provide a wealth of real estate information. However, realtors
loath Zillow‟s price estimates, invariably describing them as
wrong and bemoaning the friction they cause when prospective
clients cite them, only to have the realtor "set them straight" with
local knowledge Zillow never catches.
But the biggest thing realtors hate about
Zillow is that ... they don’t own it.
85. We can‟t resist Zillow‟s free, voyeuristic window into our
neighbors‟ homes, what they paid for them, and what they‟re
worth now. Zillow‟s official business model calls for signing up
more subscribing real estate agents, facilitating more mortgage
originations, and selling more of its highly targeted advertising.
Overlaid graphically data on the classic Zillow aerial
presentation :
Crime statistics
Health statistics
Immunization rates at schools
Sewage treatment plants overlaid with arrows representing the
predominant wind direction
If Facebook charts our social graph, then Zillow clearly has the
lead in charting our environmental graph. And as a Desired
Monopoly, Zillow can be the trusted middleman, aggregating
nice-to-have information into a must-have whole.
86. By only pursuing “sustaining innovations”
that perpetuate what has historically helped
them succeed, companies unwittingly open
the door to “disruptive innovations”.
88. Providing Consumers What They Want
Sold Prices & Dates
Listing History(Price Reductions)
Days on Market
Nearby Homes for Sale
Nearby Homes Sold
Price Estimates & Trends
Contact a Buyer’s Agent
Post Homes for Sale
Compilation of Features from Above Websites
89. How many broker, franchise, or MLS sites are providing
consumers ANY of this type information? Look at the online
performance of these sites according to the WAV Group‟s Win
Reports powered by Experian Hitwise:
The top five franchises combined amount to about 3.75% of
the total real estate traffic.
70% of all consumer traffic does not include any visits to an
agent or broker website.
The first traditional broker website ranked on Hitwise comes in
at 88th place.
Although more than 775,000 agents belong to an MLS that
provides an MLS public website for consumers, the total traffic
garnered by the top 80 MLS sites combined is less than 3.5% of
the real estate traffic.