I was spending yet another exciting night watching TED videos when I came across this video. Naturally the title was intriguing but what this guy has to say is very insightful.
The escalation of our standard of living is based on sharing of ideas and innovations. Hunters can be hunters and gathers can be gathers and then they can trade resources. In this example Ridley points out that each individual can be specialists and become experts in their tasks.
Extrapolate Ridley's presentation to the current trend in technology, social media, and think of how fast the "sexual relations" of ideas can spread. Through blogging, micro blogging, videos, etc... users can easily learn innovations, cultures, and ideas they otherwise wouldn't be exposed to. This has sped up the waves of innovation as products have reached maturity more quickly, forcing companies to release newer products more frequently. Companies that do not, may fall victim to the proverbial "Frog in the boiling pot."
Showing posts with label Innovation. Show all posts
Showing posts with label Innovation. Show all posts
Friday, July 23, 2010
Tuesday, February 23, 2010
The music industry and disruptive technology
Inspired by a presentation I heard about the music industry today:
Unless you have been living under a rock for the past 10 years you know that the innovation of MP3's have creatively destroyed the music industry. Analysts have continuously criticized the music industry for not adapting to the changing environment. In retrospect, it's very easy to consider the outcomes and make a judgement as these analysts have done and don't get me wrong, I believe the analysts were right but what is the argument for the music industry?
Like any type of disruptive technology, MP3 technology entered as an inferior technology to compact discs. It sounded worse, many of the songs were cut off, and the volume varied from song to song. Consumers who were used to CD quality music would never put up with the lack of quality. At the time, it was debatable if this technology was really disruptive in nature.
However, the music industry lived in its own little bubble. They neglected to consider the ecosystem they were in. The IT infrastructure was growing and was easily able to support the new technology, more and more people were becoming comfortable with the internet, and college age kids were willing to put up with poor quality to get something for free. As the quality got better and more companies entered the market, the problems MP3's once had were diminished and there was little reason for individuals to buy CD's. So they became the proverbial "frog in the boiling pot."
Unless you have been living under a rock for the past 10 years you know that the innovation of MP3's have creatively destroyed the music industry. Analysts have continuously criticized the music industry for not adapting to the changing environment. In retrospect, it's very easy to consider the outcomes and make a judgement as these analysts have done and don't get me wrong, I believe the analysts were right but what is the argument for the music industry?
Like any type of disruptive technology, MP3 technology entered as an inferior technology to compact discs. It sounded worse, many of the songs were cut off, and the volume varied from song to song. Consumers who were used to CD quality music would never put up with the lack of quality. At the time, it was debatable if this technology was really disruptive in nature.
However, the music industry lived in its own little bubble. They neglected to consider the ecosystem they were in. The IT infrastructure was growing and was easily able to support the new technology, more and more people were becoming comfortable with the internet, and college age kids were willing to put up with poor quality to get something for free. As the quality got better and more companies entered the market, the problems MP3's once had were diminished and there was little reason for individuals to buy CD's. So they became the proverbial "frog in the boiling pot."
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