Key Concepts in Business Innovation

Introduction

• Discussion on the success of companies like Amazon, Tinder, and Spotify.
• Focus on how they disrupted their respective markets.
• The course is about understanding disruptive innovation.

Amazon's Success

• Strategy: Innovation in sales and delivery channels.
• Initial Disruption: Started with books; online ordering and home delivery.
• Ongoing Innovations:
  • Kindle: New sales and delivery channel for books.
  • Drone delivery: Experimenting with new delivery channels.
  • Echo and Dash buttons: New sales channels through voice and button press.
• Focus Area: Sales and delivery channels as a primary innovation area.

Spotify's Success

• Strategy: Innovation in revenue models.
• CD Era Challenge: High costs for albums, few liked songs.
• iTunes Disruption: Pay per song model, first major revenue model innovation.
• Spotify's Innovation:
  • Streaming model: Free listening with ads, revenue shared with artists.
  • Introduction of a paid, ad-free version.
  • Freemium model: 25% conversion rate.
• Focus Area: Revenue models as a primary innovation area.

Tinder's Success

• Strategy: Design innovation.
• Online Dating Challenge: Complex forms vs. physical attraction.
• Tinder's Design:
  • Simplicity: Swipe right for yes, left for no.
  • Safety: Contact only if mutual interest, reducing harassment.
• Focus Area: Design innovation in the value proposition block.

General Insights

• Many areas of business models can be innovated:
  • Target customer.
  • Customer relationships and marketing strategies.
  • Process optimization and cost efficiency.
• Examples: Uber's success through design, others through different strategies.

Course Overview

• Focus on disruptive innovation in business.
• Invitation to explore the course for more detailed insights.
• Emphasis on the course's relevance for those interested in business, innovation, and technology.