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
It’s almost the holiday season and it’s time for your customers to host that special dinner party, where they can make memories and share stories with loved ones. What if they could also share the story of where that holiday meal came from?
This is now possible using the power of the Internet of Everything (IoE). The ability to monitor and assure food quality, safety, and provenance is probably one of the fastest-emerging applications of IoE – and the fastest-growing differentiator for grocers. With IoE, even the minute details of products can be tracked from source to shelf. Providing access to data across the entire agricultural food chain is sometimes now referred to as the “Internet of Food.”
Your party host can share with guests where the wheat was raised to produce the pasta, describe exactly where and how the olive oil was pressed, serve a salad that was bought at guaranteed optimal ripeness, and enjoy a glass of wine from the region of France visited by the host on his last trip to Europe.
Today, your customers are closer than ever to getting this extreme level of detail:
The pasta brand Barilla is already making this a reality. They have placed QR codes on select boxes of pasta and sauces. This code connects customers to a website that tells the story of the farms where the wheat was grown, the co-ops and factories where it was processed, and how much water and carbon dioxide were involved in production. To learn more about how Barilla did it, please read the press release.
Sensors also give retailers the ability to identify and monitor the freshest, healthiest produce. This is done using sensors that monitor the temperature and humidity of your products. You can measure concentrations of gases and even use a pocket-sized spectrum analyzer like the SCiO to determine chemical composition. Based on levels of ripeness, retailers can even develop dynamic pricing and promotional campaigns to react to changes in demand or ripening speed.
Through the Internet of Everything (IoE), retailers can break through information silos across supply chains and give customers transparency into the journey of their food, from field to fork. To see how other retailers are embracing digital transformation, see our customer stories.
Tags: Barilla, Cisco, food, grocer, Internet of Food, produce, retail, Safety for Food, SCiO, sensor, sensor fusion, Shaun Kirby, shopper
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