TomTom and Google Maps
Posted: Mon Jan 06, 2025 10:14 am
The rise of mobile is an innovation in itself
In addition to the rise of social networks, the arrival of mobile is an innovation in itself. The smartphone (iPhone) was introduced less than six years ago and the tablet (iPad) has been around for just three years now. Innovations follow each other in rapid succession. This initially requires something from the user, namely the adoption of the device. But once this has been set in motion, the introduction of the innovation also requires something from many more parties. Parties that were initially not at all ready for this shift in the new ecosystem (also called a paradigm shift).
Companies Missing the Boat: Kodak
Given that innovations are also following each other at an ever-increasing pace, this also requires more and more flexibility from all parties involved. The parties that do not respond to this often miss the boat. It reminds me of the downfall of Kodak . A company that had the photography market in its hands and could have made a big impact during the rise of the smartphone. But Kodak let the market be taken away by parties such as Instagram, Camera+ and Hipstamatic. Instagram was able to enter this rapidly changing market. The company was then bought by Facebook for 1 billion dollars.
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The innovator's dilemma
This is often called the innovator's dilemma: the fear of companies to innovate. They keep looking at the existing business and try to improve or sharpen this process. In order not to take too usa phone data much risk and the fear of failure.
Disruptive innovation
The situation then calls for disruptive innovation, to approach operational business in a completely different way. This involves replacing current business models and finding new techniques, in order to tap into a market that is completely new to the company.
Nike, Apple and Netflix are good at playing into disruptive innovation. For example, Nike could choose to launch a line of new leather shoes and green laces. This would be an extension of the current business strategy, and also in line with the innovator's dilemma. But Nike chooses to introduce Nike+ fuelband. With this, they are approaching a market that is completely different from the current market in which they operate.
When Google was still in its experimental phase of Google Maps, TomTom was already well on its way to conquering the navigation market. Google Maps only existed for desktop and did not have GPS technology, with a link from satellite to up-to-date road maps, as TomTom already had. TomTom focused on many different types of navigation boxes. Boxes that can be easily installed in the car at low cost. Every car was modernized within a few steps, and at a low rate.
In addition to the rise of social networks, the arrival of mobile is an innovation in itself. The smartphone (iPhone) was introduced less than six years ago and the tablet (iPad) has been around for just three years now. Innovations follow each other in rapid succession. This initially requires something from the user, namely the adoption of the device. But once this has been set in motion, the introduction of the innovation also requires something from many more parties. Parties that were initially not at all ready for this shift in the new ecosystem (also called a paradigm shift).
Companies Missing the Boat: Kodak
Given that innovations are also following each other at an ever-increasing pace, this also requires more and more flexibility from all parties involved. The parties that do not respond to this often miss the boat. It reminds me of the downfall of Kodak . A company that had the photography market in its hands and could have made a big impact during the rise of the smartphone. But Kodak let the market be taken away by parties such as Instagram, Camera+ and Hipstamatic. Instagram was able to enter this rapidly changing market. The company was then bought by Facebook for 1 billion dollars.
facebook instagram
The innovator's dilemma
This is often called the innovator's dilemma: the fear of companies to innovate. They keep looking at the existing business and try to improve or sharpen this process. In order not to take too usa phone data much risk and the fear of failure.
Disruptive innovation
The situation then calls for disruptive innovation, to approach operational business in a completely different way. This involves replacing current business models and finding new techniques, in order to tap into a market that is completely new to the company.
Nike, Apple and Netflix are good at playing into disruptive innovation. For example, Nike could choose to launch a line of new leather shoes and green laces. This would be an extension of the current business strategy, and also in line with the innovator's dilemma. But Nike chooses to introduce Nike+ fuelband. With this, they are approaching a market that is completely different from the current market in which they operate.
When Google was still in its experimental phase of Google Maps, TomTom was already well on its way to conquering the navigation market. Google Maps only existed for desktop and did not have GPS technology, with a link from satellite to up-to-date road maps, as TomTom already had. TomTom focused on many different types of navigation boxes. Boxes that can be easily installed in the car at low cost. Every car was modernized within a few steps, and at a low rate.