Navigation 2.0 – What social computing could add to the stagnating navigation market
Story byEric Bun
Eric is a business innovation consultant at a large management consulting firm in the Netherlands. He helps organizations defining their web(show all)Eric is a business innovation consultant at a large management consulting firm in the Netherlands. He helps organizations defining their web and e-business strategies, deploying social innovation and aligning business innovation to strategic objectives. Eric is graduated at the TU Delft on the subject of managing Communities of Practice in 2007. He has interest in deploying new (e-)businesses and is happy to be involved in relating topics such as co-creation, brand hijacking, e-marketing and innovation strategies.
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Continuous decreasing prices
Although the market of navigation devices is relative young, it is already very mature both due to the relative low entry barriers and the greatest of ease to copy existing business models. As a result, more and more companies are entering this market, prices are dropping and radical innovation (incremental yes, but radical) lags. Even the most promising companies of 2007 named TomTom, has not been able to please shareholders in 2008 and as a result share prices dropped dramatically, see figure below.
Main reason in my opinion; market has become mature and promising forecasts on radical innovation is lacking. (Reason according to shareholders andanalysts: “Navigation devices are more and more based on proven technologies, the market is influenced aggressive competitors and decreasing prices of the devices harms operation margins.”)
New e-business models and radical innovation
The public debates by the political parties created food for thought for the manufacturers and myself. TomTom (or a similar capable navigation manufacturer) is able to open up new markets and design new business models by elaborating on the social computing aspect. I personally believe in adding a seamless convergence between navigation devices, mobile phones and online web. People should be able to make amendations online (via the website) and offline via the navigation device or mobile phone. The amendations made should be shared real-time within a particular community or in the whole consumergroup (depending on the type of amendation or update). In the picture below, I sketched an overview of the developments in the navigation market and added my personal perspective on the ‘desired scenario’ (top-right).
More on my perspective (I would like to start a new discussion on what is possible and what might be added required in terms of a community driven innovation navigation market):
Well, I got a lot more ideas, but as always, I would like your opinion. Would social computing open up new business models for TomTom?
