Case Study 1

Topics: MP3, Fraunhofer Society, Choice Pages: 2 (516 words) Published: May 30, 2014
Case Study 1
Question 3
Can you map the different kinds of innovation in the case study? Which were incremental and which radical/discontinuous? Why? Give examples to support your answer. One kind of innovation is providing new ‘e-tailing’ channels through which you can obtain the latest CD of your preference. These innovations increase the choice and tailoring of the music purchasing service and demonstrate some of the ‘richness/reach’ economic shifts of the new Internet game. Also At the heart of the change is the potential for creating, storing and distributing music in digital format – a problem which many researchers have worked on for some time. One solution, developed by one of the Fraunhofer Institutes in Germany, is a standard based on the Motion Picture Experts Group (MPEG) level 3 protocol – MP3. MP3 offers a powerful algorithm for managing one of the big problems in transmitting music files – that of compression. (Tidd 46-47) This is achieved by cutting out those frequencies which the human ear cannot detect. There is also scope for innovation around the periphery –now music reviews and other forms of commentary become possible via specialist user groups and channels on the Web whereas before they were the province of a few magazine titles (Tidd 47) Person-to-person or P2P networking, Sean Fanning, an 18-year-old student with the nickname ‘the Napster’, was intrigued by the challenge of being able to enable his friends to ‘see’ and share between their own personal record collections. Napster.com did not actually hold any music on its files – but every day millions of swaps were made by people around the world exchanging their music collections. Napster opened a door for many others to reinvent similar software’s or technologies successful iPod personal MP3 player they opened a site called iTunes which offered users a choice of thousands of tracks for download at 99c each. This allowed over 1 billion songs to legally be purchased and downloaded...

Cited: Work
Tidd, J., Bessant, J. (04/2011), Innovation and Entrepreneurship, 2nd Edition. John Wile & Sons, (UK),VitalBook file. Pgs. 46-48
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