Big Bang Disruption: Strategy in the Age of Devastating Innovation
2014; Taylor & Francis; Volume: 57; Issue: 3 Linguagem: Inglês
ISSN
1930-0166
Autores Tópico(s)Big Data and Business Intelligence
ResumoBig Bang Disruption: Strategy in Age of Devastating Innovation Larry Downes and Paul Nunes (New York: Penguin-Portfolio, 2014)Big Bang Disruption should be required reading for anyone attempting to launch a business or stay in business in face of digitally enabled competi- tion, with its exponential growth curves. Big bang disruption results from introduction of new products that are simultaneously better and less ex- pensive than existing solutions. These innovations may be based on technol- ogy, but real key to their power is speed of information. Consumers, armed with ubiquitous computing net- works, mobile devices, and pervasive social connections, identify these break- throughs as soon as they launch, and flock to them-leaving competitors flat-footed.Downes and Nunes explain what drives big bang disruption and offer 12 rules that will enable companies to spot coming disruptions and launch their own disruptive initiatives. Most of book's examples are taken from consumer electronics, computing and communications products, and services industries-sectors that are dominated by exponential technologies. Yet, authors argue that even regulated in- dustries are at risk for disruption, at least at their margins; think, for exam- ple, of smart energy solutions.It should be no surprise that some successful companies (most, if you be- lieve authors) fail to introduce new products or services that capture market. Successful incumbents, apply- ing strategic logic that has created value for them in past, miss new dy- namics of competition. In process, they fall victim to what Downes and Nunes call the strange anatomy of Big Bang Disruption. In this new market anatomy, a shark fin-shaped adoption curve has replaced Everett Rogers's clas- sic bell-shaped adoption curve, which described traditional market growth. shark fin encapsulates shift from strategic business change driven by incremental technology improvements to Big Bang Disruptions that are pow- ered by exponential technologies, argue Downes and Nunes. Exponential tech- nologies are those-like mobile devices, cloud computing, Internet, and other information technologies-that have followed Moore's Law, improving in performance at an exponential pace, doubling every two years or less. These constantly improving technologies can quickly dismantle a market; witness way global positioning systems and mo- bile apps have replaced paper maps and even GPS navigation systems in a matter of years. Such exponential technolo- gies have produced declining cost of innovation, declining cost of in- formation, and declining cost of experimentation-all of which result in a shortened and skewed industry life cycle. They ensure that future will not be for anyone but fleetest of foot.In Downes and Nunes's big bang disruption occurs in four stages:1. The Singularity. Traditional market incumbents and their supply chains are challenged by entrepreneurs le- veraging disruptive technologies. These disruptors often appear as failed experiments in market and are frequently launched by in- novators outside of industry. They are first signal that a ma- jor change is on or over horizon.2. The Big Bang. When early experi- menters yield just right combi- nation of technology and business model, they quickly appeal to market, where customers share their experiences, and attract others to a promising innovation, via social media, creating explosive growth. …
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