Nathan Banks, Business Sales Operations Leader, Microsoft

Mark Rice, CTO, thebigword

Dreaming Starts

With Innovation

Our industry respects innovation, not tradition

-Satya Nadella

Blockbuster Video

• Buy videos and rent

back

• Late fees

• McDonalds model of

physical store

expansion

Netflix

• Subscription

• No Late Fees

• Algorithmic

Recommendations

Timeline v Timeline

Netflix Formed

Launch 925 titles

Pay Per Movie

1997

Subscription

Model

1998 1999

Offers to sell to

Blockbuster for

$50M

2000

Contest for

recommendation

algorithm

2006

Video Streaming

Blockbuster

Formed

Database built

& Video Game

Rental

1985

Viacom

Purchases

1987 1994 2004

Warehouse to

house movies to

expand

Purchase of

Ritz Video

1990-92

Blockbuster

DVD Rental

Online

2010

Bankruptcy

Launches

Total Access

(losing $2

per movie)

Offer to Purchase

Blockbuster Online

2007

2007

Routine Radical

Disruptive Architectural

As Good As

Innovation Framework*

* Creative Construction, Professor Gary Pisano, Harvard Business School

What Can We Learn

• You must know what and where you are to know where you are going

• Innovation is not always the next iPhone moment, exploit & explore

• Innovation requires a culture that wants to learn

• Urgency required

INNOVATION

CULTURE

THE HEAD

OF

INNOVATION

THE

INTERPRETING

INDUSTRY

PAST

INTERPRETING

AS A SERVICE

THE

ENGINE

THE PEOPLE.

THE ENVIRONMENT.

THE CULTURE.

Thank you

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