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The Business Revolution - #HIMC NYC 1/12
1.
The Business Revolution.
Hyper Island Master Class © 2011 co:collective llc 1
2.
Terrible time to
IM with your assistant, great time to though. © 2011 co:collective llc (psst - #HIMC) 2
3.
Hi, I’m @darrellwhitelaw.
Technology Experience Lead / co:collective © 2011 co:collective llc 3
4.
We all have
a past. © 2011 co:collective llc 4
5.
2 studios a bunch
of people lots of money 2 years © 2011 co:collective llc 5
6.
© 2011 co:collective
llc 6
7.
Proof it works. ©
2011 co:collective llc 7
8.
Evolving Business Models. © 2011
co:collective llc © 2011 co: collective llc 8
9.
The definition of
“business model” A business model describes the rationale of how an organization creates, delivers, and captures value. © 2011 co:collective llc 9
10.
Every business changes, it’s
just a question of how gracefully they do it. © 2011 co:collective llc 10
11.
A short story. ©
2011 co:collective llc 11
12.
© 2011 co:collective
llc 12
13.
(©1888) © 2011 co:collective
llc 13
14.
© 2011 co:collective
llc 14
15.
At it’s peak. •
pioneer in technology in the late 1800’s • built a digital camera by 1975 • accounted for 90% of film sales in US in 1976 • regularly rated one of the 5 most valuable brands • revenue of $16B in 1996 • 145,000 employees © 2011 co:collective llc 15
16.
Forecasted the death of
film would be 2010 . . . in 1979 © 2011 co:collective llc 16
17.
Today. • will be
bankrupt unless it sells off 1000 patents • restructuring into multiple business units • nine quarterly losses in three years • revenue of $6.2B • share price has fallen 90% in one year • ~1,450 employees © 2011 co:collective llc 17
18.
© 2011 co:collective
llc 18
19.
© 2011 co:collective
llc 19
20.
Pretty much the same
leader as Kodak in Asia. © 2011 co:collective llc 20
21.
Today. • operating in
several successful (new) markets • consistent YoY gains • 40% share of photofinishing market • 78,862 employees • generally not fucked © 2011 co:collective llc 21
22.
© 2011 co:collective
llc 22
23.
The similarities • both
companies • both made film at one point • both had their business rendered obsolete (I’d argue it stops there) © 2011 co:collective llc 23
24.
Kodak A culture of
complacency: • took too long to make acquisitions • management held onto film business • perfectionist mindset in new business channels © 2011 co:collective llc 24
25.
© 2011 co:collective
llc 25
26.
Fuji An early three-pronged
strategy: • squeeze as much money out of the film business as possible • prepare for the switch to digital • develop new business lines. © 2011 co:collective llc 26
27.
Don’t be lazy. Don’t
be irresponsible. Shigetaka Komori CEO - Fujifilm © 2011 co:collective llc 27
28.
Kodak acted like
a stereotypical change- resistant Japanese firm, while Fujifilm acted like a flexible American one. © 2011 co:collective llc 28
29.
The lesson is? ©
2011 co:collective llc 29
30.
What worked in
1912 won’t work in 2012. unless your industry is crochet. And then it’s probably automated, so there. © 2011 co:collective llc 30
31.
© 2011 co:collective
llc 31
32.
Because
change is hard, costs money and is risky. © 2011 co:collective llc 32
33.
But I can
assure you of 3 things. Death, taxes and the CMO will be gone in 18 months. © 2011 co:collective llc 33
34.
Innovate early, often
and aggressively. Know your company CAN change. Predict market changes and act accordingly. Find a tolerance point between awesome and profitable © 2011 co:collective llc 34
35.
Curation & Community. © 2011
co:collective llc © 2011 co: collective llc 35
36.
1934 - 2003
1989 - Present © 2011 co:collective llc 36
37.
MCA built an
empire based on music as a commodity. It worked for years. © 2011 co:collective llc 37
38.
Then the bottom
fell out Uh oh. © 2011 co:collective llc 38
39.
Matador on the
other hand focused on curating a culture, and adding value to a scene and community. It’s still working. © 2011 co:collective llc 39
40.
Old media will
adapt to find new models of consumption © 2011 co:collective llc 40
41.
“The key discovery is
that we’re not just driving digital growth, we’re driving analog growth.” - Lisa Hsia, VP New Media Bravo © 2011 co:collective llc 41
42.
Outlive © 2011 co:collective
llc © 2011 co: collective llc 42
43.
There is no
silver bullet for longevity. (don’t sleep!) © 2011 co:collective llc 43
44.
© 2011 co:collective
llc 44
45.
Netflix, July –
November 2011 © 2011 co:collective llc 45
46.
Every giant will
fall and every innovator will make a mistake. © 2011 co:collective llc 46
47.
But try to
stay positive. © 2011 co:collective llc 47
48.
The goal is
to learn to change rapidly to recover and thrive. © 2011 co:collective llc 48
49.
Thanks!
Get at me, @darrellwhitelaw or darrell@darrellwhitelaw.com if you’re legacy. © 2011 co:collective llc © 2011 co: collective llc 49
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