Today, industries are colliding and recombining in new ways. These collisions are yielding new competitive forms.
A new paper from the Global Center for Digital Business Transformation (DBT Center), a joint initiative between IMD and Cisco, calls this ‘Value Vampires’ and ‘Value Vacancies.’
Value vampires are companies whose competitive advantage actually shrinks overall market size. These are not garden-variety disruptors that simply take market share from incumbents. Rather, their success leads to a decline in total market revenues or profits—or both. Value vampires create enormous value for customers, combining lower costs with better experiences, but they have the potential to drain their respective markets of revenue and profitability.
Perhaps the most striking example of the value vampire phenomenon has occurred in the recorded music industry, which hit its peak in value in 1999, with $28.6 billion in global revenue. The seeds of disruption had been sown with the advent of the compact disc (CD), which put studio-quality digital files in the hands of everyday consumers. All that was missing to catalyze the reaction was a format that could take that digital file, replicate it, and make it easy to distribute. Enter the MP3 format, which took the large amount of data from the CD, compressed it, and made it transferable. Then along came Napster, a file-sharing service launched in 1999 that enabled consumers to download music for free, and to share their music collection with others. Today, recording industry executives and musicians alike are still struggling to develop new business models to help them retain what value is left in the music industry.
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Tags: Cisco, DBT Center, digital disruption, digital vortex, Global Center for Digital Business Transformation, IMD, Mike Riegel, value vacancy, value vampire
Connecting more things in more places creates new security challenges. Please join us on November 17, 2015 at 8:00AM (PST) for the IoT System Security webinar and learn how to secure and control IoT with the Cisco IoT System Security.
In this webinar you will hear how the IoT System Security product portfolio delivers secure connectivity, visibility, and control to assure that IoT initiatives deliver a competitive advantage for our customers. And you will learn about the new ruggedized Cisco ISA 3000 and how it provides application visibility, policy enforcement, and threat defense.
You will hear from a great line up of industry experts: Read More »
Tags: Cisco, infosec, internet of things, IoT
Traditionally, incumbent companies have relied on three main competitive advantages to maintain their leadership positions over newcomers: 1) large customer bases, 2) strong brand equity, and 3) access to large amounts of inexpensive capital.
Today, however, these attributes no longer provide the protective mote needed to fend off today’s agile, innovative, and risk-taking competition. Cisco’s recent Digital Vortex research determined four out of 10 incumbents will be displaced in just the next five years.
Here’s why. Read More »
Tags: Cisco, digital business, digital disruption, Digital transformation, digital vortex, Joseph Bradley
The Brooklyn Nets have kicked off the 2015-2016 season at the Barclays Center, but for the first time ever the venue will also host a full slate of NHL games, as the New York Islanders have made the arena their permanent home this season. But whether fans are there to see slam-dunks or power-play action, they will undoubtedly benefit from the relentless focus of the Barclays Center to deliver one of the most technologically advanced fan experiences in all of sports.
Barclays Center employs cutting-edge technology solutions to remain on the forefront of delivering the digital fan experience fans that have come to expect. A leader in stadium connectivity and digitization since it opened in 2012, Barclays Center utilizes Cisco Connected Stadium Wi-Fi and Cisco StadiumVision to revolutionize the way fans consume live sports, contributing to their mission to keep visitors better informed, engaged and connected than ever before.
Through the use of the Barclays Center mobile app, fans enjoy a customized experience with choices and information on what to watch, ways to interact and more. From the ability to order concession items directly from their seats, to streaming live video, watching replays, and even sending photos and messages to the stadium video boards, the arena’s app is all about making the fan experience more seamless and interactive.
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Tags: #DigitalTransformation, Barclays Center, Cisco, Cisco Connected Stadium Wi-Fi, CiscoSESG, concert, Connected Stadium, InternetofEverything, IoE, Ken Martin, nba, NHL, sports, sports tech, Sports technology, Stadium WiFi, StadiumVision
If you’ve ever gone hiking through the woods, you know the importance of a trail marker. You can have a great map and plenty of wilderness experience, but sometimes the wild gets the better of you. All of the trees start to look the same. It’s disorienting. You can be on the right path all along, but you’ll start to lose confidence and move more slowly if you aren’t sure you’ve taken the right fork in the trail. Only when you see that familiar symbol carved into a tree, or splash of paint on a rock, do you know with certainty that you are on the right track.
Today, I want to celebrate a key point along Cisco’s journey to lead companies down the path of digital transformation. Our Cisco marketing teams have won four ITSMA Marketing Excellence Awards – the most ever awarded to one company in a single year! The teams and the awards they won are as follows:
ITSMA Diamond Award for Marketing Excellence
Category: Driving Business with Thought Leadership
Winner: Cisco Thought Leadership Team
Our Thought Leadership Team has worked closely with Cisco Consulting Services over the past several years to codify a unified thought leadership agenda for the entire company. Their innovative research identified digital transformation in the Internet of Everything (IoE) as a major market transition and quantified the $19 trillion value at stake. Behind the strength of this analysis, Cisco made digital transformation in the IoE our top priority and company storyline. In recent months, this team has begun to translate their analysis into industry-specific roadmaps detailing how to capture the value from digital transformation.
As we have extended our thought leadership into specific industries, we have also worked to collect real customer stories of digital transformation in action as proof that the digital shift is a tangible reality. This integration of thought leadership across our consulting, sales, and marketing teams has helped to differentiate Cisco as a driver of business outcomes, given Cisco brand permission to enter new markets, and helped our customers take action to begin their digital transformations.
Congratulations to Kathy O’Connell, her entire team, and the many teammates in Cisco Consulting and all across Cisco who contribute to this work! Read More »
Tags: Cisco marketing, Digital transformation, digitization, Internet of Everything, IoE, ITSMA, Marketing Excellence Award