This is our third video on the topic, and we're going to see that some people who have been disruptive, are being disruptive by advances in the technology. The world is changing fast at a really great pace. In order to illustrate this I commissioned a photograph of me driving to work in the morning, just to show the effects of speed on what is happening in the world. So where are we? Well GPS navigators have been around for a while. They take signals from low earth orbit satellites and generate an extremely accurate position for where you're located on the earth. GPS chipsets have come down in prices. The first GPS I bought for a boat probably 15 or 20 years ago was, was much higher price than one finds today by a factor of 10. So the answer to the question of how do you find somebody in an emergency with their cell phone, was to put a GPS chipset in a phone, so that now 911 emergency services will know where you are. That's one solution, another solution is to triangulate from the towers, the cell towers, based on the strength of your signal, and come up with a position. But the GPS chipsets are getting so cheap, and they can be used for other things. Like on your iPhone for maps and navigation that it makes a lot of sense to put that in the phone. But if a phone has GPS, let's make it a navigator. So the latest version of Google maps for the iOS devices. Gives you turn by turn directions, the thing you used to get from a separate GPS natigator. So who's threatened by this? Well, these are people who manufacture GPS navigators and their sales have been dropping. Let's look at Garmin in particular because they have a large portion of the marine industry. What Garmin did, was to think about its large marine plotter business and say, how about we release our, our very highly thought of Blue Charts package for the iPad. And you can get, there's, first of all, a GPS unit in some of the iPads, and you can buy a hundred dollar add-in that creates an even more accurate GPS and just plugs into the iPad. And they're going to sell, they are selling, Blue Charts for about $30 for the iPad compared to hundreds of dollars for dedicated navigator. And so I think they followed Steve Jobs' advice and they've cannibalized themselves. I know it will be interesting to see what happens. I believe that they will come out stronger for having done this. Well, we began this course talking about Kodak and photography, and the film camera. Which was replaced by the digital camera. Which, whoops, what happened. Smart phones came along. And they started out with cameras that weren't so great. But if you think about the history of progress and technology. Things get faster. Better, smaller, and cheaper. And that's exactly what's happened to the phone in your camera. So you can see that the, there's been a steady growth in the number of camera phones. And so we end up with a situation, which you might say is the innovator's dilemma. But maybe it's not the innovator's dilemma. because of what we're seeing is an evolution of features in different products. We're not really seeing the next generation as a product. The camera is a part of a phone, but the phone has other purposes. In fact, you usually bought it to communicate as a phone. Film we saw was analog versus digital, and that took different skills altogether. All these changes for the phone manufacturer have been competence enhancing. 'Kay? So the smart phone is incorporating new functionality in a multifunctional device. Now, for the existing camera manufacturers, Canon and, and so on, this is kind of competence destroying. Well another place we can look at disruptions is like going to the movies everybody likes to go to the theater but a lot has changed. Okay, because now we have Netflix okay, and we have the opportunity to download and to stream movies rather than going to the theater and we have huge television sets to watch them on. So it's the home versus the theater. Large, flat screen TVs, high speed streaming, it's cheaper and more convenient at home, and there's a group of organizations, companies from which you can. Buy and stream movies. So my understanding is now that this is actually changed Hollywood. So that the studios are primarily interested in making very big budget blockbuster films that will bring in hundreds of millions of dollars. And they're less interested in the smaller movie. In fact, the smaller movie. Might be distributed by, DVD only, might not appear in the theaters, it might go directly to cable, but it, it's creating a, a change in the strategy for movie studios. As a result of the viewing habits that we have picked up with the help of the internet. 'Kay? Studios want to release in theaters. They want to do what's called winning the weekend, and they're doing that, as I said, with blockbuster films. They're moving to totally digital cinema, so they can distribute the movie via satellite. You could have each theater in the world that has satellite reception, have the movie appear on the same day, each copy is perfect. And so, you have the opportunity to also fight back against piracy, by having the inaugural run of the movie, the debut, all across the world at the same time. Disney broke ranks with the other studios in 2012 and said it would release its movies directly on Netflix after appearing in the theaters. For now it will be a premium service you, if you're a Netflix subscriber you'll have to pay extra to get the movie that quickly. But this is, again, a change in the approach. To showing movies and releasing movies by the studio. And, so we can take Mickey Mouse's immortal words and say stay tuned for what's going to happen next. A lot of disruptions. We've looked at many of these, clouds, partisan politics, GPS, cell phones, movies. What's the point of this? Disruptions are everywhere. They're not going to stop. Survivors have to be alert. They have to scan the environment for disruptions and they have to be ready to change their business models in order to survive in this increasingly turbulent technological environment that we're living in.
