Innovation Obstacles
April 12, 2013
It doesn’t take long to compile a dozen or more examples of products or businesses that have disappeared, or nearly so, because the world changed while the product or business did not.
Think eight-track tapes and players. Consider what digital photography has done, from the Eastman Kodak Company to out-of-business local studios. What the Internet has done to travel agents. See what’s happened and still happening to print newspapers across the country, to magazines, and to both local and large chain bookstores.
It is not at all rare that businesses fail to reinvent themselves. For many reasons, including admirable passion for what they are doing, business leaders often miss the trends or ignore the signs that suggest the need to change their products or their entire business model.
As Geoff Colvin wrote in FORTUNE magazine Feb. 25, 2013, “Business model innovation is a competency that doesn’t exist in most companies.” He continued: “The largest obstacles will be weak imaginations, threatened interests, and culture.”
I suspect that those are also the three major obstacles we must overcome as we think about the future of interscholastic athletics.
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Does school-based sports, with a 100-year-old history, have a 50 or even 15 year future in schools and society?
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If so, should the business model change? And if so, how?
I suspect that some of what we think is change may be no better than rotating bald tires on our car; when what we really need is new tires, or no tires at all.
Bottom Lines
May 19, 2017
The cost of everything in everyday life seems to rise every year. Everything, that is, except the bread and butter revenue source of the Michigan High School Athletic Association.
Next school year – 2017-18 – is the 14th straight year that ticket prices for the District level of MHSAA basketball and football tournaments have remained unchanged; and it’s the 15th consecutive year without increase at the Regional level of those tournaments. Five bucks.
Meanwhile, the cost of venues hosting some MHSAA championships is rising rapidly. Even if calendar conflicts were not evicting the MHSAA from Michigan State University’s Breslin Center, steeply increased expenses could have the same effect.
There was a time when universities across the U.S. wanted state high school association tournaments using their on-campus facilities. This was a public service as well as a marketing tool for those institutions.
Today these universities derive much more revenue from higher international student tuition than is paid by the in-state students who first come to the campus to play in or watch state high school championships. Even more important than tuition dollars are research grants, royalties and donations to what is now the big business of higher education.
Where campus athletic facilities are operated outside the athletic department it is even more evident that money trumps the mission of public service, at least as it relates to facility usage and secondary school athletic programs which, to be sure, are less important than the search for world peace and cancer cures by our universities.
People might believe it’s more appropriate for MHSAA events to be on college campuses than in commercial arenas; but frankly, it’s getting hard for us to see a difference. The bottom line drives them both.