How can you tell?

Blockbuster had a brick and mortar facility to house and distribute videos, which was very successful at one point to the tune of 8,000 rooftops.

Enter Netflix

Netflix had an online facility with distribution centers that evolved from mailing videos to streaming them on the Internet. Today, in addition to a successful online-movie-streaming business, they have their own movie production house.

They were both ‘movie-rental’ companies.

The difference is… Netflix was not limited by what they already knew. Meanwhile, Blockbuster was actually limited by their own success. After all, they had a very lucrative history, and they were confident that they were meeting – and possibly even – exceeding the needs of their customers. From their standpoint, they were ‘doing a great job’.

Netflix did not achieve success by taking a ‘Blockbuster’ business model and putting it online. Instead, they developed a business model tailored to a new segment of customers that were interested in convenient access to entertainment. In other words, even if Blockbuster were handed the technology, their traditional thought process still would have put them out of business. Change requires ‘change’. It also requires vision and an understanding of future-customer expectations.

When I speak to potential customers, I talk about the details of building an online infrastructure and the digital psychology behind growing this segment. One thing I seem to always hear is, “Oh yeah… we do a great job with the online”. However, what I find is that they are referring to a combination of their sales initiatives and the fact that they are using technology. They do not seem to grasp all of the requirements for establishing a business that genuinely exists online.

The most common misunderstanding about AuctionVcommerce is that we were simply created to provide phone support for dealers trying to buy online. The reality is that AuctionVcommerce was created to provide Independent Auto Auctions with a Digital Operations Management Solution – an infrastructure designed with the resources to leverage auction technology and supplement it with the personnel and tools to meet the needs of the evolving customer. We are also providing our members with insight to objectively make good technology decisions and serving as an advocate with 3rd party vendors when the online technology executes poorly, or not at all. Furthermore, we are accentuating the traditional strengths of our customers and presenting them to the new, digital society. We are the entity that has been established to guide Independent Auto Auctions into the future.

You see, disruption does not care how many years of experience you or your management team have had in your field. The venue has changed… and so has the game.

Click on the link below to read the article in which JP Nicols uses the story of Netflix and Blockbuster as an example of how success in the past is a poor teacher for what it takes to be successful in the future.

https://banknxt.com/59861/success-netflix-blockbuster/

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