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Game Innovation IV: The Disruptive Power of Game Technology Roger Smith SPARTA Inc. [email protected] 407.380.0076 © Copyright 2006, Roger Smith http://www.modelbenders.com/papers/ Invention vs. Innovation Invention Creating a new technology, capability, process, material, etc. Innovation Finding a commercially valuable application of that invention Peter Drucker on Innovation “One cannot manage change. One can only be ahead of it.” “Business has only two functions – marketing and innovation.” Peter Drucker “Father of Modern Management” 1909 - 2005 Incremental Innovation – The Pen “build on and reinforce the applicability of existing knowledge” “improving and exploiting an existing technological trajectory” Radical Innovation “destroy the value of an existing knowledge base” “disrupt an existing technological trajectory” Radical Innovation “destroy the value of an existing knowledge base” “disrupt an existing technological trajectory” Innovation & Benefits Radical and Incremental Waves Incremental Radical Time Leifer, R. et al. (2000). Radical Innovation: How mature companies can outsmart upstarts . Harvard Business School Press. Computer “Killer Apps” Spreadsheet Word Processor E-mail Web Browser 3D Game Engine What Is Game Technology? GUI 3D Engine Physics Models Networking Artificial Intelligence Persistence Military Simulation Medicine Architecture Education Entertainment XML … The Movie Movies – Games – Machinima Movie = XML Data stream Actors, camera, words, sounds, mood Stream fed to different game engines are reproduced uniquely Requires a standard data stream Creates a new industry – digital scripts and rendering engines Exploration Product Performance Christensen’s Disruptive Innovation Performance demanded at the high end of the market Performance demanded at the low end of the market Market disruption opportunity Time Christensen, C. (1997). The Innovator’s Dilemma. Harvard Business Press. Product Performance Multi-Technology Disruption Disruptive Game Technologies Time Multi-Technology Disruption (Kiviat Graph) 3D Persistence Physics Network AI GUI Military Tech Game Tech Game Potential Industry Disruption Potential Game Potential Game Entry Industry Size 90% 70% 60% 90% 20% 20% Military Simulation Medicine Education Entertain ment Architect ure Explor ation Resources, Processes & Values Energy X Customers •Cool People Energy Values •Focus, Culture •What we care about Processes •Creative Process •How we do it $ Resources •Valuable Assets •What we are good at Change $ X Products •Cool Things Christensen, C. (2005). Seeing What’s Next. Harvard Business Press. Value Chain Evolution 3D Engine is a limited solution Target “Not Good Enough” Shift to other needs to keep growing User Experience – intuitive, quick understanding JIT Exercises – scenario development Rapid DB Build – rapid terrain/environment Lower Costs – affordable upgrades, wider distribution Easier Deployment – smaller HW footprint, larger audience Target Non-consumption Bring 3D experiences to customers who never used 3D before Give them an alternative to their old solutions Disrupt the Old Guard Today … Be Disrupted by the Next Wave Tomorrow References Christensen, C. (1997). The Innovator’s Dilemma: When new technologies cause great firms to fail. Harvard Business School Press. Christensen, C. & Raynor, M. (2003). The Innovator’s Solution: Creating and sustaining successful growth. HBS Press. Christensen, Anthony, & Roth. (2005). Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change. HBS Press. Leifer, R. et al. (2000). Radical Innovation: How mature companies can outsmart upstarts. Harvard Business School Press.