Avatar - A study on Innovation

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What is a disruptive innovation?

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Avatar - A study on Innovation

Transcript of Avatar - A study on Innovation

Page 1: Avatar - A study on Innovation

What is a disruptive

innovation?

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Case Study Exercise

Turn over the sheets of paper in front of you

Spend a minute considering:________ is a disruptive innovation because it /she/he ______ .

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“I had the feeling coming out of this movie that I haven’t felt since 1977.”

“It’s the iPhone of the movies!”

“There is still at least one man in Hollywood who knows how to spend $250 million, or was it $300 million, wisely.”

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http://www.youtube.com/watch?v=e5Yhpqn0yx0

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Avatar as Innovation:Disrupting the Film Industry

Sushma Sheth, Aziz, Rehmatullah Anirudh Oswal, Daniele Vicente, Bruce Jang

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Innovation: Two Types

Incremental Innovation: a predictable improvement

Disruptive Innovation: a discontinuous leap

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So what?

Why do we care about disruptive innovation? It’s cool. It’ll make us rich and well-respected. It’s the natural way to leverage our big, expensive

MBA brains to add value to our teams, projects, and organizations. Yeah.

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3D Movies3D Televisions3D Video GamesHybrid Movie CameraThe Volume – Movie StudioPerformance Capture

Avatar Activist GuidesEnvironmental Campaigns

Avatar Inspired NatureAvatar TourismNBA Player Development

Avatar Fashion3D Make UpAvatar JewelryPandora Furniture

3D HeadachesPost-Avatar DepressionBinocular Vision Disorder

Na’vi Language CoursesNa’vi Community Forums

3D Porn

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Three key areas of Focus

Financial

Technological

Social

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Assess Avatar Focus Area by

where ? what were the benefits?

where what was disrupted? what was the broader impact?

Were there incremental innovations?

Were there disruptive innovations?

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Financial Innovation

Ludicrously massive financial success Highest grossing movie of all time ($3B) Broke Blu-Ray sales records of 2.7m in 4 days.

Raised the price point for movie tickets From $10 to $14 for 3D, and $16 for IMAX 3D

Incremental: - Willingness to increase costs of production

- New capital costs for theatresDisruptive : - Premium product priced above IMAX and 2D

- James Cameron’ intended to shift the balance of powers within the industry

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Technological Innovation

Incremental : - 3D Fusion Camera System - Performance Capture Animation

Disruptive: - 3D : A renewed and exploding Platform

James Cameron is considered “part Scientist, part Artist” – developed new 3D movie making technology

Revolutionary 3D Fusion Camera System modeled after the eye

Performance Capture Animation

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Case Study

Eye-modeled Camera Movie Studio = Giant Computer Screen Boost camera attached in front of actor’s

face

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Social Innovation

James Cameron Visits to Brazil’s Amazon and Alberta’s tar sands

Social Action inspired by Avatar The Avatar Project: a program to support military amputees Avatar-themed Palestinian protests Avatar-themed protests in Jakarta to protect orangutans

Incremental: Using Fictional stories to inspire social action.

Coordinating social action with existing organizations & movements

Disruptive: Avatar’s scale and power have inspired grassroots social action across the globe. It’s a platform.

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Case Study: The Amazon Rainforest

Protesting the Belo Monte Dam in Brazil It will dry up 60 miles of the Xingu River, displacing at

least 20,000 indigenous people.

Cameron has visited several times, drawn media attention, pressed for a meeting with President Silva

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“One life ends…another begins.”

Who Said?

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BA: Before Avatar

Firm

Suppliers

Competitors

Buyers

New Entrants

• Digital Imaging• Cameras• Production Skills• Technical Training• 3D Accessories

• Digitizing Theatres• Imax Expansion• Movie goers paying more

• Increase in production costs• Shift in Marketing and positions

• Raised cost of entry• Threat to smaller, emerging production houses

AA: After Avatar

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Was Avatar Incremental or Disruptive?

Our Definition:A Discontinuous leap in Value Propositionto the customer.

YES.But, it wasn’t just disruptive. It was also incremental.

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Insights from Avatar

Increased value capture and raise willingness to pay

Foster industry wide changes and shift the balances of forces

New platforms can be a win for innovator and the industry

Successful innovations have incremental and disruptive elements

Innovation can accelerate adoption of a old technology

Brand Equity can be built and extended via social change

Global launch can leverage technology and amplify buzz & adoption

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Questions to Consider

What’s the right proportion of incremental and disruptive innovations within a project, team, or organization?

What are the skills you need to drive incremental and disruptive innovations? Can the same people/team do both at the same time?

What other industries might the lessons from Avatar apply to?

Incremental

Disruptive

Financial

Technological

Social

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Interesting Tidbits

3D Porn Avatar has inspired Hustler Studios and Playboy to make 3D

porn. Aw yeah.

James Cameron offered his 3d-enabled submarine to BP to help with undersea repair efforts in the Gulf of Mexico.

“Avatar: The Game” has sold 2.7 M copies – making it a big hit – even though most agree that the game is pretty crappy.

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Questions/Comments/(snide remarks?)