SBANC
Newsletter
July
4, 2006
Issue 428-2006
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QUOTE
"A
fundamental rule in technology says that whatever can be done
will be done."
-- Andrew
Grove
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FEATURE
PAPER
Online
Piracy and the Emergence of New Business Models
The
following paper was presented at the 2006 USASBE/SBI Joint Conference
in Tucson, Arizona. It was written by David Y. Choi of Loyola
Marymount University and Arturo Perez of Growthink.
Abstract
This explorative paper examines the impact of online piracy on the emergence of innovative,
legitimate business models. While often dismissed by academics and professionals alike, online
piracy has shown to be a valuable source of innovation to both industry incumbents and
entrepreneurs. The paper briefly summarizes the evolution of piracy technologies and associated
online communities. Then, the paper explores piracy in the media industry and discusses the
means by which it has influenced innovation. Finally, the paper observes the Torrent
phenomenon and suggests its potential impacts on the emergence of new business models.
Indtroduction
This explorative paper
examines the impact of online piracy on innovation and new business
creation. While often dismissed by academics and professionals alike, online
piracy has shown to
be a valuable source of innovation to both industry incumbents and entrepreneurs
for the
following four reasons:
First, the online pirates have pioneered the use of new technologies. For example,
they have
made a significant impact in the evolution of file-transferring technology, which
has created
breakthroughs in information distribution for both illegal and legal uses. Second,
the piracy
communities have been the source of invaluable market insight to the business
world. Third,
online pirates have contributed to new market creation. For example, many of
former Napster
users have migrated to the legal version of Napster and Apple’s iTunes. Finally,
online piracy
has often spurred the creation of legal and innovative business models.
We observe that this pattern of piracy pioneering new market insight, market
communities and
business models is repeated with each generation of new pirate technology. We
point out that
companies that understand the pattern and take advantage of the innovation offered
by piracy
communities can build businesses of significant value.
Our paper is one of the very first and rare attempts on the subject of online
piracy in management
or entrepreneurship literature. It is also one of the first writings to describe
the transition of
online piracy to legitimate businesses. We believe that this is a practical paper
that can be of use
to academics as well as entrepreneurs.
Read
the Entire Paper...
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CONFERENCES
COC
|
| Who: |
Conference
Organising Committee
|
| What: |
The
International Conference on the Arts in Society
|
| Where: |
The
University of Edinburg in Scotland |
| When: |
August
15-18, 2006 |
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IABE
|
| Who: |
International
Academy of Business and Economics (IABE)
|
| What: |
IABE-2006
Annual Conference
|
| Where: |
Las
Vegas, Nevada, USA |
| When: |
October
15-18, 2006 |
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CEE
|
| Who: |
Consortium
for Entrepreneurship Education
|
| What: |
24th
Annual Entrepreneurship Education Forum
|
| Where: |
Phoenix,
Arizona, USA |
| When: |
November,
2006 |
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SMA
|
| Who: |
Society
for Marketing Advances
|
| What: |
2006
Conference
|
| Where: |
Gaylord
Opryland Resort and Convention Center in Nashville,
Tennessee, USA |
| When: |
November
1 – 4, 2006 |
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|
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IPSI
|
| Who: |
Internet,
Processing, Systems, and Interdisciplinary (Research)
|
| What: |
IPSI
2006 - Slovenia
|
| Where: |
Lake
Bled, Slovenia |
| When: |
November
30-December 3, 2006 |
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CALLS FOR PAPERS
ASBE
|
| Who: |
Association
for Small Business and Entrpreneurshipl
|
| What: |
Fall
Conference
|
| Where: |
Best
Western in Corpus Christi, Texas |
| When: |
Novermber
1-3, 2006 |
Submission
Deadline:
August 1, 2006
|
|
|
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USASBE
|
| Who: |
United
States Association for Small Business and Entrepreneurship
|
| What: |
2007
USASBE Conference
|
| Where: |
Disney's
Coronado Springs Resort in Orlando, Florida |
| When: |
January
11-14, 20076 |
Submission
Deadline:
August 15, 2006
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|
|
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AA
|
| Who: |
Allied
Academies
|
| What: |
2006
Fall International Conference
|
| Where: |
Atlantis
Casino Resort & Spa, Reno, Nevada, USA |
| When: |
October
19-21, 2006 |
Submission
Deadline:
September 11, 2006
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|
|
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WDSI
|
| Who: |
Western
Decision Sciences Institute |
| What: |
36th
Annual Meeting
|
| Where: |
Denver,
Colorado, USA |
| When: |
April
3-7, 2007 |
Submission
Deadline:
October 1, 2006
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|
|
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RCC
|
| Who: |
Rollins
China Center |
| What: |
The
Globalization of Chinese Enterprises: The Advent
of a New Age
|
| Where: |
Rollins
College in Winter Park, Florida, USA |
| When: |
November
30-December 1, 2006 |
Submission
Deadline:
October 15, 2006
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TIP
OF THE WEEK
Executive Summary
of: Innovation
Ten percent
of all small businesses purposefully innovate or invent with
the intention of selling or leasing the results of their efforts.
Innovations or inventions provide all sales for about one in
five of these enterprises; they are responsible for 50% or more
of sales in more than half. Employee-size of business appears
unrelated to the propensity of small firms to purposefully innovate.
Twenty percent
of small businesses employ one or more people, including the
owner(s), whose primary job is to develop new products, services,
processes, or designs.
Over
the last three years, about 4% of all small employers or just
over 1% a year have applied to a government agency for financial
assistance to develop new products, services, processes or designs.
More small
employers own copyrights (13%) that they actively use in their
businesses than own patents (5%).
Design
is a major innovative focus. Twenty-one percent of small businesses
market design. More than six of 10 who market design report half
or more of their sales stem from it. However, the survey does
not identify whether the design is for purposes of increasing
productivity, such as, an electric circuit on a computer chip,
or pleasure, such as, a dress design.
Three of four
small employers specifically and directly encourage their employees
to suggest ideas for new products and services or better ways
to produce and distribute them. Just over half offer bonuses
and/or special recognition
to employees who make suggestions used to increase business
productivity or sales. The most common award is bonuses and
recognition
(32%) followed
by bonuses exclusively (14%) and recognition exclusively (5%).
The median number of employees who received an award last year,
among those who
provided awards, was two.
Five percent of
small-business owners claim it would be more accurate to classify
themselves as a producer of technology than as a user or an "avoider" of
technology. Another four percent volunteer that they are both
producers and extensive users of technology. Sixteen percent
attempt to avoid technology.
Forty-two percent
of all small businesses introduced at least one new or
significantly improved product, service, process, or design
into their sales inventory
in the prior year. Most often, the introduction was a product
(55%), followed by a service (29%), a process (8%), and
a design (7%). Thirty-four
percent report that they have never introduced a new or
significantly improved product, service, process, or design.
Another 11% say it has
been three years or more since they have.
The idea for this
new or significantly improved product/service/process/design
was developed internally in one-third (33%) of cases. Another 42%
say they upgraded
or modified the idea based on what they saw elsewhere.
Almost 12% (or 5% of the total population) are trying to license or
otherwise
sell it.
| William
J. Dennis, Jr. NFIB National Small Business Poll: Innovation.
Volume 5, Issue 6. Page 1. |
ANNOUNCEMENTS
14th IBAM Conference
in Memphis
The Institute of Behavioral and Applied Management (IBAM) provides a forum for management educators, business practitioners, and students to share their ideas, research, and experiences in a friendly and supportive environment. These adjectives and others like "constructive" are typical of comments made by participants of IBAM conferences. Session discussions are lively, informative, stimulating, broad-based, and helpful to presenters and participants alike.
This year's
conference will be held in Memphis, Tennessee. It is at the Marriot
Downtown. The conference takes place October 5 - 7, 2006. So
make reservations now. You can find out more by going to the
IBAM Website.
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The
SBANC Newsletter is provided as a service to the members of our
affiliates: Academy of Collegiate Marketing Educators (ACME), Association
for Small Business & Entrepreneurship (ASBE), Federation of
Business Disciplines (FBD), International Council for Small Business
(ICSB), Institute for Supply Management (ISM), The International
Small Business Congress (ISBC), Marketing Management Association
(MMA), Small Business Administration (SBA), Service Corps of Retired
Executives (SCORE), Small Business Institute (SBI), Society for
Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs (VA).. If you are
interested in membership or would like further information on one
of our affiliates, please see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr.
Don B. Bradley III, Executive Director of SBANC & Professor
of Marketing;
Direct Phone: (501) 450-5345
Brandon
Tabor, Development Intern
Tyler
Farrar, Development Intern
Garion
McCoy, Development Intern
To subscribe or unsubscribe to the
SBANC Newsletter, please E-mail SBANC at sbanc@uca.edu
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