Innovation is the lifeblood of progress! As a community we often seek to better our lives by making them easier and thus more efficient. Innovations and breakthroughs through research and technology have played a vital role in influencing the lives we lead today.
However; having said that; the question ‘what is the cost of innovation?’ comes to mind.
What is our opportunity cost as we constantly pursue the future?
Those the introduction of innovation disrupt or upset the consumer structures of related goods and how they are consumed?
The introduction of certain types of innovation may lead to a structural reform in the way by which consumers choose to consume a product. Therefore the cost of innovation can sometimes lead certain industries to become at a disadvantage, effectively uprooting them and leaving them obsolete.
The introduction of mass online storing facilities such as sound cloud, drop box and even desktop file storage space, accompanied by the transition of film cameras to digital ones, has had an adverse effect on the photo album industry.
PT Tommy (Indonesia) is a photo album-manufacturing firm.
Capturing market dominance in Jakarta, the monopoly failed to assess why it’s competitors were leaving the industry before it was too late..
It now operates in a sunset trade, wherein the industry is shrinking.
It is ironic how originally photo albums and cameras were both complimentary goods to one another; but with the introduction of an innovative new idea; turned tables and became foils to one another. The innovation of both the transition of film to digital cameras, accompanied by the revolution of online storage facilities brought a prospering industry to it’s knees. Photo albums became obsolete as consumers adopted the more efficient and cost saving online storage to store their photographs. Such is an important lesson, to both appreciate and be weary of innovation and all it’s splendor as well as it’s consequences.
This is a common example of disruptive innovation at it’s finest.
pic bib:
- http://www.tmialbum1.com/