It used to take years or even decades for disruptive innovations to dethrone dominant products and services. But now any business can be devastated virtually overnight by something better and cheaper. How can executives protect themselves and harness the power of Big Bang Disruption?
Just a few years ago, drivers happily spent more than $200 for a GPS unit. But as smartphones exploded in popularity, free navigation apps exceeded the performance of stand-alone devices. Eighteen months after the debut of the navigation apps, leading GPS manufacturers had lost 85 percent of their market value. Consumer electronics and computer makers have long struggled in a world of exponential technology improvements and short product life spans. But until recently, hotels, taxi services, doctors, and energy companies had little to fear from the information revolution. Those days are gone forever. Software-based products are replacing physical goods. And every service provider must compete with cloud-based tools that offer customers a better way to interact. Today, start-ups with minimal experience and no capital can unravel your strategy before you even begin to grasp what’s happening. Never mind the “innovator’s dilemma”—this is the innovator’s disaster. And it’s happening in nearly every industry. Worse, Big Bang Disruptors may not even see you as competition. They don’t share your approach to customer service, and they’re not sizing up your product line to offer better prices. You may simply be collateral damage in their efforts to win completely different markets. The good news is that any business can master the strategy of the start-ups. Larry Downes and Paul Nunes analyze the origins, economics, and anatomy of Big Bang Disruption. They identify four key stages of the new innovation life cycle, helping you spot potential disruptors in time. And they offer twelve rules for defending your markets, launching disruptors of your own, and getting out while there’s still time. Based on extensive research by the Accenture Institute for High Performance and in-depth interviews with entrepreneurs, investors, and executives from more than thirty industries, Big Bang Disruption will arm you with strategies and insights to thrive in this brave new world.
Today’s world sees accelerated development in new companies, products, and ideas. So much so that they cause disruptions. The authors dubbed these disruptions Big Bangs. Never mind the botched metaphors, the point is the disruptions can be very fast and impactful.
So can they be foreseen? No, not deterministically according to me unless you are a ubercomputer and knows everything and can simulate possible futures fast enough. Just like in a World Cup, you may be able to estimate odds, but not foresee all outcome. But the authors believe they can teach you how to see disruptions coming and even start them. This is a human tendency to see patterns to interpret past events in a neat theoretical framework. It’s post-hoc, it’s cherrypicking. I’ll give you just one example: timing is touted as a key element in disruptions. Amazon didn’t release the kindle as the first e-reader; they waited until they see the problems of the current offerings, solved the problems; and boom, hugely successful Big Bang product. This is classic postbox explanation. They conveniently forgot the same wait-and-boom strategy led Amazon to release the hugely disappointing smartphone.
This book is a must read to all CxOs and executives. The authors do a fantastic job to explain how disruption now can occur very rapidly, generating "creative destruction" faster than before (when the great Clayton Christensen wrote about the innovator's dilemma). I also liked the discussion about how the Chasm and the adoption curve changed with the new Big Bang disruption phenomena. Read it to understand how today's and tomorrow technologies are now exponentially disrupting established industries and what to do to stay in the game.
A guide for enterprises or anyone who want to venture in this era of disruption. It talks about what is big bang disruption which looks like a shark fin, how it happens and strategies to maneuver through choppy waters of devastating innovation.
Easy to miss some of the better insights in this book. At first blush the book seems like a different way of describing compression of product/business cycles. A lot of time spent describing "the shark fin". But the book has observations worthy of more thought and ink:
what does it take to recreate an "enterprise as an engine of continuing innovation". The author includes examples that are not simply product extensions and tweaking of new features. "The art of serial disruption."
"The replacement of a traditional supply chain with an ecosystem". "Interaction in multiple directions, competitive discipline exerted on every participant by all of the others and an ability to form new partnerships, ventures as enterprises and technologies evolve."
Suggestions for forms of "early detection radar" for your business. One example, "an honest evaluation of pain points in the supply chain, either for your customers or suppliers, or both."
Challenge of embracing direct market experimentation.
Suggestions for escaping entropy that are easier said than done. The book has several "what to dos". The "hows" aren't addressed...making the human and behavioral changes needed to execute the shift from tight focus on execution to balance discovery.
Disclaimer: I received this book gratis via the authors' PR firm.
I try to stay on top of important business books, especially those with emphases on technology, innovation, and disruption. To this end, I recently read Big Bang Disruption: Strategy in the Age of Devastating Innovation. Here's my review.
The Good
Downes and Nunes have clearly done a great deal of research. Their book is not lacking in content and ambition, calling the work of business stalwarts like Geoffrey Moore and Clayton Christensen into question. They argue that ours is a new, different era, and that the old rules no longer apply.
Major props here for the prodigious examples, even though I had heard of about 80 percent of them. The obliteration of the once-mighty Pinball industry with video game consoles (e.g., PlayStation) over several decades was particularly effective and instructive. Today, product launches and disruption happen much faster. Business leaders should take heed.
The core of the book is great. Forget existing "rules" or "dogmas" like "crossing the chasm" etc > all that is old thinking. The book is about a new model called "the shark fin", with 4 stages: the singularity (no, not the one of Ray Kurzweil ;-), the big bang, the big crunch, and entropy. With for each step, 3 strategies for companies who really want to disrupt. I very much liked the end of the book describing latest evolutions of CVC (Corporate Venture Funds) with a great case from CitiVentures. I only give a 3 star, as there is a lot of repitition, and the cases are most of the time the same we have heard so often about, with some notable exceptions: philips, citi, I read the book in less then a day, but skipping through the parts that felt like over-repeating. Anyway, if you still think innovation is about idea generation, open innovation funnels, and the innovators dilemma, this is a good update for you ;-)
Nicely done. Well constructed analysis of digital-based innovation. Many interesting real life examples. Book almost lost me in Part 1, as it was a summary of already well publicized recent event (e.g., rise of twitter). Fortunately, Part 2 provides the innovation framework (Shark fin) that is quite insightful.
* The Singularity 1. Consult Your Truth Tellers 2. Pinpoint Market Entry 3. Launch Seemingly Random Market Experiments * The Big Bang 4. Survive Catastrophic Success 5. Capture Winner-Take-All Markets 6. Create Bullet Time * The Big Crunch 7. Anticipate Saturation 8. Shed Assets Before They Become Liabilities 9. Quit While You're Ahead * Entropy 10. Escape Your Own Black Hole 11. Become Someone Else's Components 12. Move to a New Singularity
entrepreneur.com summary: The entire cycle of innovation has been disrupted thanks to technology. The world has begun to focus on goods delivered with the help software, such as smartphone applications. While authors Larry Downes and Paul Dunes, both experts in the tech world, break the bad news about technology disruption to potential entrepreneurs, they also offer key advice about how to survive and compete in this fast-paced world. The bad news for entrepreneurs is that instead of sitting back and making money with technology, they are really going to have to work: The tech world is moving so fast that if companies don’t innovate, they're going to become obsolete overnight.
More modern extension of classical business model disruption
Big Bang disruption takes a more modern view of the Innovators Dilemma and Geoffrey Moore’s Crossing the Chasm, and shows how the “Shark Fin” is a different strategic timeline.
Cheaper, faster technology is creating a new eco system with fierce competition. These experts review dozens of case studies aiming to build framework to keep potential disruptions from becoming disasterous – essential lessons for any business leader or aspiring entrepreneur.
I like the content, but it is horribly presented. While it is interesting to hear the stories how innovation accelerates and disrupts existing business, the lingo of physics and the creation of the universe as a parallel is strange, odd and make the book harder to follow than necessary.
Pick the classic 'Innvator's Dilemma' instead. Very similar plotline, just much better.
@Riptide360: Book: Finished Big Bang Disruption by Larry Downes. Early adopters are the norm. You have one shot to scale. Market leader is the only profitable spot. Quit or Innovate while you are ahead to stay relevant. Decent read for startups with big consumer aspirations.
Despite being a bit outdated (although it was published 10 years ago), this book is very smart and interesting, presenting interesting facets of business. Totally recommend it for C-level and product people.
Technological advancements enables the creation of better an cheaper products faster than ever, and the product life cycle shrinks. How to deal with similar situations?? The authors say: at each stage of the reshaped product life cycle, be faster!! Nothing impressive about the book for me !
Inspired to elaborate on his HBR article, this ground breaking work is essential reading for all senior managers. The principles are simple and easy to implement but the urgency of the task is never to be underestimated. Go for it.
Authors tried to explain industry disruption using astronomy analogy such as the Big Bang. Too many big words (eg. Singularity, Big Crunch, Entropy, Shark Fin) , in my opinion.
The case studies are plentiful. Felt like it was a supplement notes written for MBA students or board members.
Very nice description of the new brutal competition. I found the advice excellent and practical in order to deal with big bang disruptions. Must read for everyone not protected by regulations.
Today’s innovators are in a prime position to introduce products and services that are both cheaper and better than ever before. Such innovators are called Big Bang Disruptors, and they make use of exponential technologies – things like the internet, cloud-based computing and smartphones – to break into and disrupt markets. If you don’t want to get incinerated in the next big bang, then you’ve got to understand the life cycle of Big Bang Disruption and follow the 12 rules that’ll help you live through it.