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Amazon and Nintendo, A Disruptive Innovation
- 1. Disruptive Innovation Amazon and Nintendo John Brownell October 27, 2009
- 2. What is Disruptive Technology? Creates new and unexpected markets Transforms complication into simplicity
- 6. Customers
- 7. Distribution
- 9. Expansion of Amazon.com Expansion beyond Books Music, Videos, Toys, Electronics, Clothing, Digital Downloads “Biggest Bookstore” to “Mass Merchandiser”
- 10. Amazon.com Critics Hit Hard Investing too much in technology Inconsistent Margins Profitability?
- 11. Why Infrastructure Services? Capability of significant returns High scalability Address underserved markets Highly differentiated
- 12. Amazon Web Services Simple Storage Service (S3) Interface for storing and retrieving data Elastic Cloud Compute (EC2) Resizable computing capacity in the cloud
- 13. Amazon Web Services SimpleDB Real-time access to structured data Simple Queue Service (SQS) Store data messages between apps
- 14. No subscription fee No upfront costs Pay-per-use pricing model AWS, Disruptive Business Model
- 15. Calling all small companies, Why use AWS? Reliable, scalable, inexpensive storage Hitting markets harder and faster Little cost associated with I.T infrastructure
- 16. AWS, Large Companies, No Match Too big to scale High cost of bandwidth Security and compliance issues Extremely high data reliability
- 17. Gaming Industry Evolution Markets Teens and Arcades Introduction of home consoles Personal computer “Entertainment platform” Pertaining to young adults
- 18. Gaming Technology Expand consoles into totally new products Availability of broadband internet HD graphic video Inexpensive hard drive storage Blu-ray video Online gaming Social networks
- 19. Gaming Key Players Sony Playstation PS2 Ps3 Microsoft Xbox Xbox 360 Nintendo Wii DS
- 20. Nintendo’s Light at the End of the Tunnel Increased complexity of games Complicated controls Not applicable for occasional gamers What about the non-gamers?
- 21. Nintendo’s Strategy Engage with non-gamers Health and Fitness Family gaming Simplify games Easier interactive controls Downloadable games
- 22. Nintendo’s Disruption Starts Portable gaming platform Nintendo DS Simplified touch screen controls
- 23. Introducing Wii Motion detecting controllers Easy and fun games Internet availability “Family Gaming” Social Networks Simulation of real life games Tennis, Bowling, Boxing, Baseball, Golf, etc.
- 24. Amazon’s Disruptive Strategy Three Enablers of a Disruptive Strategy Simplifying technology Amazon simplifying I.T Infrastructure Cloud computing Business Model Innovation Pay-per-use No Subscription or upfront costs New Value Market B2C B2B
Notas do Editor
- Disruptive Business Model- The simplifying technology must be embedded in a disruptive business model, whose resources, processes and profit formula enable it to deliver the simple, affordable solution to the customer in a cost-effective way.New Value Network- an ecosystem within which the disruptive business model is embedded. Within a value network, suppliers and distributors and customers have similar value propositions and profit formulae, and they tend to develop products in a similar rhythm.
- trusting your data and its reliability, security and confidentiality to others in the cloud
- Gestures turn into on screen movements