Skip to Main Content
Access your saved content
In their Harvard Business Review webinar, Paul Nunes and Larry Downes, co-authors of “Big Bang Disruption: Strategy in the Age of Devastating Innovation,” explain how a new kind of disruptive innovation is devastating existing markets with products and services that are both cheaper and better.
Big Bang disruptors arrive suddenly, often from left field, catching incumbents off-guard. Thanks to social media, customers now adopt winning products en masse. Companies must be prepared for “catastrophic success,” able to scale up and scale down quickly. New markets are increasingly winner-take-all—at least so far as profits are concerned.
To survive the age of devastating innovation, companies must understand the stages and adopt the rules of Big Bang Disruption.
The webinar summary can be downloaded. Or, you may watch the webinar replay.
A collection of Big Bang Disruption resources is available at Big Bang Disruption: Lessons for Executives.
What makes Big Bang Disruption possible? In short, the answer is technology deflation. As the cost of core components decline, it is now cost-effective to embed digital technology into a growing range of products and services. And the maturation of a vibrant cloud-based ecosystem also lowers the cost of innovation overall. These parallel trends make it possible for innovators to introduce new products and services that are both better and cheaper than existing goods, right from the start.
Technology cost deflation drives the three defining features of Big Bang Disruption:
Unencumbered development – Innovators “develop” through a series of in-market experiments with actual customers.
Undisciplined strategy – Disruptors compete on all three dimensions of strategic discipline, offering products that are lower-cost, higher-differentiated and customized across segments.
Unconstrained growth – “Near perfect market information” means consumers market to each other, turning winning combinations of technologies and business models viral.
Continued decline in the cost of core technologies — and not only digital goods — will accelerate the pace of Big Bang Disruption in the future, driving it into mature industries that have so far been largely unchanged by the information revolution.
Big Bang Disruption progress through four stages, which loosely follow the four stages of the big bang theory of the universe:
The Singularity: A period of wild experimentation in the marketplace as new technologies are combined and recombined in creative ways.
The Big Bang: Customers rapidly embrace the innovation and abandon older products, services and brands.
The Big Crunch: Once most potential customers become actual customers, adoption slows.
Entropy: Strategy shifts to end-game tactics to avoid being left behind as everyone else moves to something bigger.
To survive each stage, companies must follow Big Bang Disruption survival rules. Listen to the webinar or read through the webinar summary to learn the 12 rules for surviving devastating innovation.
June 23, 2014
Skip Footer Links