Question

Big Bang Disruption is affecting the fields of Education, Healthcare, Transportation (Taxi Services) and Travel -Lodging (Hotels). Explain with examples of new businesses (or new ventures).? Existing companies will enjoy an advantage in new-business creation only if they build on their strengths. Why so? Explain this with the case of Intel Corp

Answer 1

Big Bang Disruption is a drastic original type of innovation. A Big Bang Disruptor is better and inexpensive as compared to the already present companies. The Big Bang Disruptors have the potential to trigger a disaster in mature industries through advanced technologies which include cloud computing, broadband and omnipresent mobile devices. The Big Bang Disruption is different from traditional innovation as it is highly innovative and better integrated with complementary products and services. For example, today restaurants are dependent on online reservations, reviews of customers, coupons, etc. Information technology is the backbone of dashboard systems in automobiles and may even power self-driving cars in the future.

A major obstacle to established incumbents is that big bang disruptions make use of already present technologies that don’t even seem to be related to their business and provide offering that have a far better value proposition. The Big Bang Disruptors do not see the existing incumbents as their competition and do not have the similar approach to address customer needs and provide customer service. For example, Twitter started as an experiment to send messages to multiple people simultaneously but today it boasts of more than 200 million active users. It is a big bang innovation which was based on fast maturing and omnipresent technology platforms. These disruptions are mostly developed through available mechanisms that don’t cost much. Even in industries such as the education industry where regulations exist, there is burgeoning pressure from big-bang disrupters. Education is moving online (through MOOCs, distance learning programs) with the advent of Khan Academy, Udemy and CampusBookRentals which are transforming the education industry.

If existing companies want to venture into new businesses, then it is imperative for them to build on their own strengths. Otherwise, they will be just like the start-ups that begin it afresh. The new ventures should draw from their parent’s strengths to provide a blend of experience and innovation. For example, in the previous decade, Intel overlooked certain trends in technology disruption. They failed to notice that the shift from desktops to mobile devices implied that their x86 processors were no more suitable. After they missed the early days of mobile device revolution, Intel put in efforts to get a foothold in smartphones. However it was a failure and they admitted that they were trying to be different just for difference’s sake.