Disruption is now attacking even hard-asset businesses. The replacement of core technologies with new disruptors can wipe out all your retained earnings quickly if you allow it to. It is also counterproductive. Couple in-the-market development with modular and platform-based interconnectivity, and you have an offering that is almost certain to be highly customer-intimate as well.
The most recent round of improvements in information technologies has changed the game once again, driving down costs and prices over time. That response is both predictable and stereotypical. Innovators can now experiment, cheaply and rapidly, directly in the market using off-the-shelf component technologies.
Shed Assets Before They Become Liabilities—As one generation of disruptors fades, related assets—factories, distribution networks, and intellectual property—can lose value, gradually and then suddenly. Given the time it takes to innovate, that can be a tall order. Create Bullet Time—Judiciously employ litigation and legislation to slow the progress of disruptors, even as you Big bang disruption case sdudy with your own experiments, partnerships, and well-timed acquisitions.
Customers have been quickly galvanized through social media to fight back—so far, successfully.
Nothing about the new services is proprietary or particularly hard to duplicate. These new businesses allow customers to order and pay for rides with a mobile device, track dispatched rides using location services and rate the driver after each trip.
When Google launched its free perpetually beta app Google Maps Navigationthe company was, as always, looking simply to drive more eyeballs to more advertisements by integrating more already-digital information.
But beware the deadly behavior of your older products and services once better and cheaper alternatives are readily available. But from the outset, the app out-performed expensive, standalone GPS devices on every strategic dimension. The bitter lesson learned: Little surprise, then, that the major players in the GPS device market lost as much as 85 percent of their market cap in the 18 months after the Google Maps Navigation introduction.
You need to anticipate saturation before it happens and to scale down as quickly as you scaled up. Countless other industry sectors have also fallen far behind the digital revolution. When the law implicitly or explicitly limits internal competition and bars new entrants, businesses have little, if any, incentive to innovate.
If you think technology will not disrupt your category — then you have just become shark food. Knowing the right time to sell, and to whom, can mean the difference between your ability to develop the next disruptor and bankruptcy.
And word of their superiority in all relevant dimensions now travels the globe in a flash, like the latest YouTube sensation.
And because each of those components will soon be cheaper, they can keep their per-unit innovation costs lower than the predictable decline in production and delivery costs. Taxi service is just one example. Thanks to advances in IT and development platforms, the costs of innovation have declined dramatically.
And once the disrupter finds a way in, the collapse is that much more sudden.
Doing so gives you more time to move to a new ecosystem. And it can be calamitous and devastating for both innovators and the competition. While this new style of devastation is starting to be recognized in such information-intensive industries as consumer electronics, software and retailing, every industry is at risk.
Entire product lines and whole markets are now being created or destroyed overnight. But the common response of incumbents so far has been to focus their efforts on convincing regulators to ban the new entrants rather than figure out how to compete with them. Sponsoring hackathons, opening innovation centers for entrepreneurs, and excelling at corporate venture capital can often buy you the access and equity you need to catch up for lost time and missed opportunities in the early stages.
Capture Winner-Take-All Markets—Sacrifice everything, including short-term profits, to ensure victory in winner-take-all markets, especially when success with one disruptor can be leveraged into follow-on products that can be created and launched even faster than the original.
Consider the impact of new smartphone-based applications such as Lyft, SideCar and Uber on mature taxi and limousine services. Watch for emerging standards that signal the maturing of winning technologies Rule 5. Survive Catastrophic Success—Prepare to scale up from experiment to global brand in the space of months, if not weeks, and to redesign your technical and business architecture even while running at full speed.
Innovation on its head Consider the smartphone, which has displaced a growing list of former standalone products, including digital cameras, calculators, organizers, alarm clocks, email readers and, perhaps soon, handheld game devices, electronic book readers, video cameras and laptop computers.
But branded consumer staples are under threat too. Knowing which assets to keep for the next cycle of innovation is equally important. The challenge now for innovators is to invent products so beloved by customers that they will pay more for them despite falling prices.CASE IN POINT: Microsoft’s Kinect, an add-on to the company’s Xbox that brought voice and motion activation Twelve Rules for Big Bang Disruption THE SINGULARITY THE BIG BANG THE BIG CRUNCH ENTROPY 1.
Consult your truth-tellers 2. Pinpoint your market entry 3. Launch seemingly random experiments 4. Survive. Abstract.
The nature of disruptive innovation, first studied by Joseph Schumpeter, has changed dramatically in the wake of rapidly and predictably deflating costs for embedded digital technology.
“The strength of the book is to document what is known about the ongoing phenomenon of fast-paced large-scale disruption and the book gives many vivid examples If Christensen’s disruption from below was scary, big bang disruption can be 4/5(32).
Big-bang disruption happens in large part because experimentation with a wide range of new, often off-the-shelf component technologies has become both low-cost and low-risk. Many, many failures are likely before the right combination is found and proven to.
Big Bang Disruption: Strategy in the Age of Devastating Innovation is a book about technology and innovation, specifically how technology is the ‘Big Bang’ that can deliver disruptive innovation by both driving down business costs and making the delivery of new benefits possible.
Big-Bang Disruption Case Sdudy Essay 12/04/ Big - Bang Disruption Case study Ruixi YANG 12/04/ Big - Bang Disruption Case study Ruixi YANG As we are entering in a new fast technology world, entire product lines are being created or destroyed overnight because of the disruptive technologies, which are based on the emerging .Download