{"id":155,"date":"2009-02-11T22:13:08","date_gmt":"2009-02-12T02:13:08","guid":{"rendered":"http:\/\/blog.payne.org\/?p=155"},"modified":"2009-02-11T22:13:08","modified_gmt":"2009-02-12T02:13:08","slug":"some-disruptions-are-sponged-up-by-the-incumbents","status":"publish","type":"post","link":"https:\/\/payne.org\/blog\/some-disruptions-are-sponged-up-by-the-incumbents\/","title":{"rendered":"When Disruptive Value is Sponged up by the Incumbents"},"content":{"rendered":"<p><a href=\"http:\/\/dragonstyle.typepad.com\/\">Charles Teague<\/a> and I were riffiing today on entrepreneurial opportunities around the iPhone, location-based services, and other areas.\u00a0\u00a0 A recurring discussion theme was:\u00a0 sometimes technology disruptions don&#8217;t lead to NewCo opportunities.\u00a0 Why?<\/p>\n<p>Consider the hype around Web Services from years ago.\u00a0 There were dozens (perhaps hundreds) of companies funded, but today, can you name a single durable, sustainable, profitable, value-creating Web Services company?<\/p>\n<p>Web Services is clearly an important disruptive technology, but the value created was entirely absorbed by existing companies:\u00a0 Amazon, Google, eBay, Yahoo, etc. and the hundreds\/thousands of other Internet technology companies.\u00a0 In other words, it wasn&#8217;t disruptive enough.<\/p>\n<p>True disruption comes when a new technology is so different, existing companies have difficulty processing it, and that &#8220;processing delay&#8221; lets a NewCo move in.\u00a0 The Internet was the last major example:\u00a0 Amazon was off to the races while Barnes and Noble was still parsing the implications.<\/p>\n<p>Many disruptions really aren&#8217;t truly disruptive.\u00a0 Take location-based services &#8212; it seems clear that most of the benefit is going to be absorbed by existing apps and companies.\u00a0 It&#8217;s not to say that location-based services can&#8217;t be a component of a successful app, but I have a hard time believing that the location-based companies (e.g. Loopt, Where.com, etc.) will be successful without major strategy changes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Charles Teague and I were riffiing today on entrepreneurial opportunities around the iPhone, location-based services, and other areas.\u00a0\u00a0 A recurring discussion theme was:\u00a0 sometimes technology disruptions don&#8217;t lead to NewCo opportunities.\u00a0 Why? Consider the hype around Web Services from years &hellip; <a href=\"https:\/\/payne.org\/blog\/some-disruptions-are-sponged-up-by-the-incumbents\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","hentry","category-ramblings","category-software"],"_links":{"self":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/comments?post=155"}],"version-history":[{"count":0,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/155\/revisions"}],"wp:attachment":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/media?parent=155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/categories?post=155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/tags?post=155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}