Serial Disruption

I’m a non-tech guy now working in a high-tech organization. Often, my head spins when I see the kind of technologies that are now changing our lives.

That’s why I was so taken by and article entitled, “Disruption Is the New Normal.” Here’s part of what the writer said:

On a trip over the holidays, my wife rolled her eyes when I realized we’d left the Garmin at home and said we’d have to get a GPS for the rental car. She pointed to the Google Maps app on her mobile phone and said: “I bet this works even better.” It did. We benefited from the kind of technological disruption that is great for consumers, but brutal for businesses trying to survive rapid change and perhaps impossible for government regulators trying to keep up.

A generation ago, the Rand McNally atlas was the state of the art in navigation. Then Garmin, TomTom and other innovators developed satellite-based GPS devices. But barely a decade later, Google added constantly updated navigation to its maps and made them easily accessible as an app on mobile phones for the unbeatable price point of zero. The market value of stand-alone GPS makers fell as much as 85%.

This is the radical new normal for business, according to authors Larry Downes and Paul Nunes. “Before the information age, conventional wisdom held that new markets were created from the top down,” they write in their new book, “Big Bang Disruption.” Analog-era business strategies have been disrupted. Business guru Michael Porter once told companies they could get competitive advantage if they picked one strategy among premium pricing, cost savings or focusing on market niches. In the 1990s, Clayton Christensen urged executives to overcome what he called the innovator’s dilemma by moving fast once newcomers entered markets with lower-quality, lower-priced products.

But powerful new technologies like cloud computing and big data allow entrepreneurs to develop products and services that are “simultaneously better, cheaper, and more customized,” Messrs. Downes and Nunes write. “This isn’t disruptive innovation. It’s devastating innovation.”

Intrigued? You can read the entire article here.