Big Bang Disruption - ACHE of Massachusetts

25 Pages·2013·2.08 MB·English

Big Bang Disruption
ACHE of Massachusetts
May 2013
Pinball not only survived the early period of arcade video
games, it thrived…
Units, hundred-thousands
F“mg…uaolImr'lve-ee…Ts .pi SlYlatooy ouCen done revm viodeerer b olga atrgeocarwkm, yeoosu,u t b gourfto pwI iln iokbueat lp lo.i"nf. bvaidlle o
April 28, 1995, Tampa Tribune
New Wizards Flipping Out Over Pinball
jiaaPuncsimdn cvuobpisuadetnlderlyo tite somgd ba a3famro0ckre ke ps,ot e.nat roBflcytoeue knt5r t bon.pyvee ear1rcr.9le yI9nn 0dt 1y,o i9tfnh 8gte3h i,nen pu atimmnhbbeu aesmrlel imhda-edn'8 t0 s
March 10, 1994, San Francisco Chronicle
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…but then along came a Big Bang Disruptor…
Pinball Units Sold Playstation™ Units Sold
(Hundreds of Thousands Per Year) (Millions Per Year)
30
1.5
20
1.0
10
0.5
0 0
1989 1992 1995 1998 2001 2004
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…and then another appeared in travel…
Thousands Millions
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… and another wiped out newspapers
Ad Revenue, $US, billions
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Where can we expect Big Bangs?
Some examples by industry
• Manufacturing – The “Internet of Things” drives the supply chain from the bottom
• Health care – Biometric sensors demystify the shamanistic myth of medicine
• Finance – Money becomes just another form of information
• Government – Market pricing for public services
• Consumer Products – Market-led marketing takes over
• Energy – Practical fuel cells…launched on Kickstarter
• Education – The virtual ivory tower revolutionizes learning
• Utilities – Portable electricity networks mirror wireless communications
• Pharmaceuticals – Bespoke drugs based on your DNA
• Retail banking – The end of cash
• Retail – The disruptive force of the sharing economy
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Where can we expect Big Bangs in healthcare?
Disruption pending in the healthcare industry
Advances in telecommunications, precision diagnostics, and information
management and decision-making tools could result in a variety of disruptions:
Adapted from David Chase’s Forbes article “Healthcare CEO’s
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New curve of market adoption of innovation
Big-Bang Market
Segments
Trial
Everybody else
Users
Innovator Early Early Majority Late Majority Laggards
s Adopters (34%) (34%) (14%)
(2.5%) (13.5%)
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Three key characteristics of Big Bang Disruption
Big Bang
Disruption
n
o
i Unconstrained
t
a
r Growth
t
e
n
e
P

t Traditional Technology
e
k
r Unencumbered Product Adoption
a
M
Development
Undisciplined
Strategy
Time
9
Undisciplined Strategy: You can’t beat it
Standalone GPS
• BBDs begin life with
•$100 - $300
better performance, lower
price, and greater
•Intermittent update
customization.
•Little to no real time
• Customers now expect
context
new products to be better
and cheaper.
Smartphone Nav App
• In fact, BBDs rarely come
from traditional
•Free
competitors – many are
•Real time updates of
never intended to
data and software
compete directly with the
incumbents they disrupt.
•Integrated with
contacts and search
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