Friday, November 7, 2014

Saturday, November 1, 2014

Module 5 Blog Post on Red Queens and Increasing Returns



Module 5 Blog Post on Red Queens and Increasing Returns
            In knowledge-based companies, opposing companies compete in winner-takes-all markets. Arthur (1996) states that active managers that want Increasing Returns watch for the next wave of technology that is coming. They work towards figuring out what shape it will take, and the position their company will take to gain an advantage. As related technologies emerge, competition may occur between two new emerging technologies. Thornburg (Laureate Education, 2014e) points out that with Increasing Returns, by chance – one technology gets locked in and drives the other technology into extinction. An example of Increasing Returns is the battle between Panasonic VHS video tapes and Sony Betamax video tapes. Betamax video tapes give a higher quality picture in comparison to VHS video tapes. However, Panasonic at the time was able to provide available software and pre-recorded videos that were more cost effective at the time. As a result, the Panasonic VHS video format obsoletes the Sony Betamax video format. Thornburg (Laureate Education, 2014e) states that the concept of “Increasing Returns” comes from a branch of mathematics known as Chaos and Complexity Theory. Theorists can apply mathematical equations to help explain the emergence of new technologies. Emerging technologies do not follow a linear process. The process is always nonlinear.
    
The Red Queen is a result of the two technologies competing against each other. Thornburg (2013d) says that with the Red Queen, the two competitive technologies compete at such a rapid pace. Both technologies start running as fast as they can, yet, no matter how fast they run; they seem to be staying in the same place. The concept of the Red Queen reigns from Lewis Carroll’s (1946) novel Through the Looking Glass.

In Module 4, the assignment was to obtain a science fiction movie – identify, and characterize the different technologies. Fortunately, I was able to find my DVD copy of the movie Star Trek into Darkness (2013). There is a current competition in the video industry between DVDs and video-on-demand. The two competitors are an example of a Red Queen rivalry.
Thornburg (2013e) examines Marshall McLuhan’s Laws of Media, which impact the nature of new and emerging technologies. There are many consumers that wish to own and buy DVDs.  DVDs enhance the ability for consumers to watch videos through both DVD players and computers. DVDs obsolete the use of video cassette players. DVDs also rekindle the experience of families selecting a program to watch together. DVD sales can also reverse to video-on-demand. 

Video-on-demand enhances a consumer’s video rental experience. Consumers can use their TV and cable remotes to rent or buy a video they wish to see. Video-on-demand also obsoletes video outlet stores such as Blockbuster. Now, consumers do rent movies through Red Box at their local retail stores. Video-on-demand can one day obsolete the purchase of DVDs. Video-on-demand rekindles the experience of families selecting a program to watch together. Video-on-demand can one day reverse to a device such as Google Glass.


References
Arthur, W. B. (1996). Increasing returns and the new world of business. Harvard Business
Review, 74(4), 100−109.Retrieved from the Walden Library databases.
Laureate Education (Producer). (2014e). David Thornburg: Increasing returns [Video file].
Baltimore, MD: Author.
Laureate Education (Producer). (2014g). David Thornburg: Red queens [Video file]. Baltimore,
MD: Author.
Thornburg, D. (2013c). Emerging technologies and McLuhan's laws of media. Lake Barrington,
IL: Thornburg Center for Space Exploration.
Thornburg, D. (2008). Emerging Technologies and McLuhan's Laws of Media. Used with permission of David Thornburg.
Thornburg, D. (2013d).  
Red queens, butterflies, and strange attractors: Imperfect lenses into emergent technologies. Lake Barrington, IL: Thornburg Center for Space Exploration.
Thornburg, D. (2014). Red Queens, Butterflies, and Strange Attractors: Imperfect Lenses into Emergent Technologies. Licensed via Creative Commons Attribution-No Derivs 3.0 United States License. http://creativecommons.org/licenses/by-nd/3.0/us/ Third-party images removed.
Photo Credits
Images of Beta & VHS Tapes: Image of DVDs: Image of The Red Queen: Image of Video on Demand: