the business revolution - #himc nyc 1/12

© 2011 co:collective llc

The Business Revolution.

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Hyper Island Master Class


Terrible time to IM with your assistant, great time to though.

2(psst - #HIMC)


Hi, I’m @darrellwhitelaw. Technology Experience Lead / co:collective

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We all have a past.

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© 2011 co:collective llc 5

2 studiosa bunch of people

lots of money2 years


Clients


Proof it works.

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© 2011 co:collective llc© 2011 co: collective llc

Evolving Business Models.

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The definition of “business model”

A business model describes the rationale of how an organization creates, delivers, and captures value.

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Every business changes, it’s just a question of how gracefully they do it.

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A short story.

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(©1888)


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

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Forecasted the death of film would be 2010 . . . in 1979

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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

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Pretty much the same leader as Kodak in Asia.

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Today.

• operating in several successful (new) markets• consistent YoY gains• 40% share of photofinishing market• 78,862 employees• generally not fucked

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The similarities

• both companies• both made film at one point• both had their business rendered obsolete

(I’d argue it stops there)

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Kodak

A culture of complacency:

• took too long to make acquisitions

• management held onto film business

• perfectionist mindset in new business channels

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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.

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Don’t be lazy.Don’t be irresponsible.

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Shigetaka KomoriCEO - Fujifilm


Kodak acted like a stereotypical change-resistant Japanese firm, while Fujifilm acted like a flexible American one.

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The lesson is?

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What worked in 1912 won’t work in 2012. unless your industry is crochet.And then it’s probably automated, so there.

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Because change is

hard, costs money and

is risky.

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But I can assure you of 3 things.

Death, taxes and the CMO will be gone in 18 months.

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Innovate early, often and aggressively.

Know your company CAN change.

Predict market changes and act accordingly.

Find a tolerance point between awesome and profitable


Curation & Community.

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1934 - 2003 1989 - Present


MCA built an empire based on music as a commodity.

It worked for years.


Then the bottom fell out

Uh oh.


Matador on the other hand focused on curating a culture, and adding value to a scene and community.

It’s still working.


Old media will adapt to find new models of consumption

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“The key discovery is that we’re not just driving digital growth, we’re driving analog growth.”- Lisa Hsia, VP New Media Bravo


Outlive

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There is no silver bullet for longevity.

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(don’t sleep!)


Netflix, July – November 2011

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Every giant will fall and every innovator will make a mistake.

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But try to stay positive.

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The goal is to learn to change rapidly to recover and thrive.

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Thanks!

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Get at me, @darrellwhitelaw or [email protected] if you’re legacy.

the business revolution - #himc nyc 1/12

Business

collective

dont

worked

today