On Wednesday, Steve Jobs unveiled the new iPod Nano at the company's annual music event. The major change to the Nano this year is the addition of a standard definition (not HD) video camera. An 8GB Nano costs $150, and the 16GB version is $180. The combination of a low-end video camera, convenient form factor, and relatively low price suggests that the iPod Nano is a disruptive innovation to the camcorder industry.
What’s amazing about the video camera-enabled iPod Nano is that it actually disrupts a very successful disruptive product: the Flip Video camera (shown on the left). With an incredibly small size (my Flip is 3.3 ounces), decent video (HD is an option), and easy uploading, the Flip Video has been high on tech geeks’ wish lists for a long time. Many of my friends use their Flips to post quick videos of their kids at home or to run short interviews at work.Given the rapid of pace of technology R&D and Moore’s Law, it comes as no surprise that one of 2008’s most disruptive products gets disrupted itself in 2009. The big question becomes: what are the best practices for how companies should create disruptions in a market that has already been disrupted? A corollary question is: are there certain market trends that suggest disruption is possible in a recently disrupted market?
Undoubtedly, these are new questions to ponder. The answers to these questions will become more evident in the next 12 to 18 months as continued rapid innovation occurs in a number of industries, including health care, alternative energy, and of course, consumer technology.
6 comments:
Here's what I think. You've heard of "convergence theory"? All technology devices will, at one point, encompass everything. What you are currently labeling as "disruptive" is actually a move to convergence. Like clothes, sometimes you buy a "one size fits all"- same deal. One device performs, in fact, everything!
That's a good point, Entrepreneur Chick. I do think that convergence, especially if it leads to a new bundled solution that is more convenient and at a lower cost than the unbundled services, is a form of disruptive innovation. We certainly see this phenomenon happening with things like the iPhone and its App Store.
Just to clarify, "disruptive innovation" is a specific term that was coined by Clay Christensen. The phrase refers to innovations where the traditional lever of performance for a product or service goes down, but a new lever of performance is improved (e.g. convenience, size). The classic example of a disruptive innovation is Southwest Airlines, which provides fewer destinations and a less sophisticated level of service, but the price is significantly cheaper. And in this way, people who wouldn't otherwise choose to fly are now flying.
Ah... I should have google-ed "disruptive innovation" before I started confusing it with convergence- because that's what I believe I've done.
>Excellent example about Soutwest.
>Totally off the subject BUT, I have a girl I know named Chloe, which is one of the blogs I read. I think you guys would like each other. She's in NYC. Not that far from you. Her blog is: http://fortunecookiesandmen.blogspot.com
I am a matchmaker at heart. Heh, heh.
>Geez. I hope you aren't married.
Nice! Go on a date and post the report on your blog (with pics).
Your followers are waiting...
Hi Entrepreneur Chick!
I am not married, and it's good to know that there's nice people out there who care about my well-being!!
That said, I am doing fine on the dating front. Hope that doesn't change your desire to read my blog...
Gordon,
Well. You are horribly disappointing poor Carl and I. If you can live with the guilt; so be it.
>Doing "fine" is not the same as "fabulous".
>Of course I'll still read your blog, goofball.
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