1 / 14

Disruptive Nature of IT

Disruptive Nature of IT. What is the problem?. In 2002, over a billion files where available for sharing on the internet At its highest there were 50 million hits on Napster a day!

chiku
Download Presentation

Disruptive Nature of IT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Disruptive Nature of IT

  2. What is the problem? • In 2002, over a billion files where available for sharing on the internet • At its highest there were 50 million hits on Napster a day! • Several artist created their own websites that allowed customers to download directly from thereby bypassing music companies • Music industry claims that digital file sharing is a clear & present danger to the future of the music industry as we know it. • Declining Revenues over the past 6 years • High Employee Turnover and high artist defections to other companies • Only one record sold over 10 million the last 5 years • But the problem is not new since there are billions of illegal CDs being produced in 3rd world companies and other places. The Internet is hitting home because the 14-24 yr old in a developed market is the industry’s target audience and they are the current computer user.

  3. Why has the industry been so slow to embrace the new technologies? • At the beginning they thought it will go away • It was too small to affect their business • They thought they can crush it • There was conflict of interest with other units in the organization (Sony & AOL) • It was not their core competency so they allowed others to take the lead (Apple) • Government anti-trust regualtions

  4. How do companies usually respond to disruptive technologies? • Ignore – RIAA early response • Fight – RIAA (Recording Industry Association of America) lawsuits • Straddle (do both separately) – Bertelsman, B & N • Recombine (Try to integrate) – Sony, Netflix • Switching (dropping the old in favor of new) - Schwab • Harvest (new business model) – Apple

  5. What are the Technological developments that disrupted the recording industry • mp3 compression technology • Broadband • P2P (Person-to-Person) transfer • A repository of where the music exists • Social Networks & other sites where artists can reach the consumer directly

  6. What are the current business models enabled by the internet? • Pay for download (iTunes) • Subscription (Napster 2.0) • Advertising (Pandora)

  7. VOIP – The dismantling of the telephone business model

  8. Handling calls using POTS (Plain Old Telephone Service) CopperLocalLoop FiberOpticTrunk CopperLocalLoop Phone Company Circuit Switch Phone Company Circuit Switch Analog Digital Analog

  9. What technology enabled VOIP?PACKET SWITCHING TECHNOLOGY • Change Analog message to Digital • Divide digital message into packets of about 1500 characters each • Add to each packet a destination and origination addresses • Add to each packet the total number of packets that the message consists of • Add to each packet its sequence number (important to know the order of the packets to rebuild the message) • Rebuild the message once all packets arrive at destination • Convert Digital message to Analog

  10. Handling calls using VOIP Gateway B R2 Packet Switch R1 PBX Gateway A R3 R4 PacketSwitch PBX

  11. Advantages of VOIP • Higher quality sound • More efficient use of assets (packet switching vs. circuit switching) • Faster transfer of voice messages • Cost • Freedom from dependence on location • Ability to provide local numbers at any location • Ability to use a single number for all communication devices • Ability to hear emails and read voice messages • Ability to consolidate everything on one bill • Ability to consolidate voice & data communications on one network

  12. Disadvantages of VOIP • dropped packets (jittery delivery) • security • support • out of business if electricity is out • no 911 calling • Difficulty to make money off. • No barriers to entry

  13. Business Models Enabled by VOIP • Skype (P2P) – where you do not pay for calling other Skype users and pay local charges for calling other phone users (Utility Model) • Vonage, Net2Phone, SBC: phone service providers – functions like a regular telephone company – usually has a subscription based fee to handle your monthly telephone needs

  14. Latest disruptive Technology • Siri

More Related