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Big Bang Disruption

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New, better and cheaper goods are reinventing product and service lifecycles.

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Big Bang Disruption

  1. 1. HERETODAY.GONETOMORROW NEW,BETTERANDCHEAPERGOODS AREREINVENTING PRODUCTANDSERVICELIFECYCLES • TomTom revenues peak in 2007 at EU 1.7 billion • Garmin auto sales peak in 2008 at USD 2.5 billion • Late 2007: iPhone (with Google Maps) debuts • By the end of 2009: – TomTom’s revenues fall from peak by 15% – Garmin auto sales fall from peak by 20% • Today, Google Maps has seen over 1 billion installations TomTom and Garmin vs Google Maps 0 200 400 600 800 1000 1200 0 500 1000 1500 2000 2500 3000 Jan-04 Oct-06 Jul-09 Apr-12 Dec-14 TomTom, revenues (EU millions) Garmin, net sales from auto (USD millions) Google Maps, mobile installs (millions) REVENUES(INEUANDUSDMILLIONS) MOBILEINSTALLATIONS(MILLIONS) Copyright © 2018 Accenture. All rights reserved. MONTH - YEAR
  2. 2. HERETODAY.GONETOMORROW NEW,BETTERANDCHEAPERGOODS AREREINVENTING PRODUCTANDSERVICELIFECYCLES • 2003: Netflix reaches 1 million subscribers • 2004: Blockbuster revenues peak around USD 6 billion • 2005: Netflix reaches 3 million subscribers • 2009: Blockbuster revenues have fallen from over 30% from peak; declares bankruptcy in 2010. Blockbuster vs Netflix REVENUES(USDBILLIONS) $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 1986 1991 1996 2001 2006 2011 2016 Netflix revenue (billions) Blockbuster revenue (billions) YEARCopyright © 2018 Accenture. All rights reserved.
  3. 3. HERETODAY.GONETOMORROW NEW,BETTERANDCHEAPERGOODS AREREINVENTING PRODUCTANDSERVICELIFECYCLES Nintendo Console Sales: Accelerating Sales, Accelerating Declines YEAR UNITSSHIPPEDPERYEAR(MILLIONS) Copyright © 2018 Accenture. All rights reserved.
  4. 4. BIGBANGDISRUPTIONUPENDS TRADITIONALBUSINESS RAPID LIFECYCLES CAN WIPE OUT WHOLE INDUSTRIES “THEREARE NOSECOND ACTSIN AMERICAN LIVES.” F. SCOTT FITZGERALD Copyright © 2018 Accenture. All rights reserved.
  5. 5. DIGITALDISRUPTIONIS BECOMINGMORECOMMON INDUSTRIESUNAFFECTEDBYTHEFIRSTWAVE OFTRANSFORMATIONARE IMPACTED MAPS & DEDICATED GPS DEVICES TAXI SERVICES & CAR RENTALS HOSPITALITY & LODGING FINANCIAL SERVICES & PAYMENTS TRAVEL AGENCIES MOVIE RENTALS & TELEVISION Copyright © 2018 Accenture. All rights reserved.
  6. 6. FOURWAYSTOBEBETTERANDCHEAPER COMPANIES SHOULD SELF-DISRUPT Source: https://www.forbes.com/sites/bigbangdisruption/2016/03/07/four-reasons-todays- disruptive-innovations-are-better-and-cheaper-and-what-to-do-about-it/#460d6649ab64 PRICE DEFLATION PLATFORM EXPLOITATION CROSS- SUBSIDIZATION MARGINAL COST ELIMINATION Copyright © 2018 Accenture. All rights reserved.
  7. 7. THREEPROBLEMSFORINCUMBENTS Copyright © 2018 Accenture. All rights reserved.
  8. 8. YOUCAN’TSEEITCOMING *Source: Medeiros, João, “The Startup Fighting Cancer with AI”, Wired, March 22, 2016. Copyright © 2018 Accenture. All rights reserved. UNENCUMBERED DEVELOPMENT
  9. 9. YOUCAN’TBEATIT * Elementum website www.elementum.com Copyright © 2018 Accenture. All rights reserved. WINS AT ALL THREE STRATEGIC DISCIPLINES
  10. 10. YOUCAN’TSTOPIT Copyright © 2018 Accenture. All rights reserved. UNCONSTRAINED GROWTH 0 20 40 60 80 100 120 140 160 180 200 0 2 4 6 8 10 12 14 ESTIMATEDUSERS(MILLIONS) YEARS SINCE DEBUT OF FIRST AUTO-GPS OFFERING Google maps mobile installs TomTom cumulative unit sales* Garmin cumulative unit sales NB: Garmin and TomTom data from available 10k filings and annual reports. Garmin’s year 0 = 1998 (StreetPilot debut); TomTom’s year 0 = 2002 (Navigator debut). Both Garmin and TomTom unit sales are inclusive of all GPS products. Google data from publicly available news sources; year 0 = 2007 (debut of Maps for Mobile 2.0) * TomTom stops reporting unit sales per year after 2009
  11. 11. FOURSTAGESOFBIGBANGDISRUPTION Copyright © 2018 Accenture. All rights reserved. YIELD FOUR STRATEGIC IMPERATIVES
  12. 12. INDUSTRIESEXPERIENCINGBIGBANGDISRUPTIONTODAY Copyright © 2018 Accenture. All rights reserved.
  13. 13. Copyright © 2017 Accenture. All rights reserved. SEVEN HABITS OF HIGHLY VULNERABLE ENTERPRISES Consider 3D Printing for example: Manufacturing can easily move to appropriate locations to account for national legislation. This allows entirelynew and flexible options to organizeglobal manufacturing and supply footprintsthat optimize for cost and complexity. Copyright © 2018 Accenture. All rights reserved.
  14. 14. Copyright © 2018 Accenture. All rights reserved. SEVEN HABITS OF HIGHLY VULNERABLE ENTERPRISES
  15. 15. HOWCANYOUSURVIVE BIGBANGDISRUPTION? Copyright © 2018 Accenture. All rights reserved.
  16. 16. ASK YOURSELF 1 2 4 3 Who are the truth-tellers in this industry? WHAT IS THE INDUSTRY’S INEVITABLE FUTURE? How fast can you scale a new business model? HOW FAST CAN YOUR COMPETITORS SCALE? What is the real value of your current assets? WHAT WOULD IT BE IF A BIG BANG DISRUPTOR APPEARS? Are you ready to repurpose your offerings and capabilities FOR NEW INDUSTRIES AND MARKETS? Copyright © 2018 Accenture. All rights reserved.
  17. 17. Copyright © 2018 Accenture. All rights reserved. CREATE AN INTELLIGENT ENTERPRISE Take Control of Disruption Forms of disruption: • Big Bang • Compressive • Digital Fragmentation Unlock Trapped Value Opportunities: • Enterprise • Industry • Consumer • Society Rotate to the New Perpetual change journey: • Transform • Grow • Scale • Pivot wisely Master new organizational architectures • Living business • Industry X.0 • Future workforce • Digital decoupling • Cyber-resilient business
  18. 18. FINDOUTMORE ABOUTDISRUPTION Copyright © 2018 Accenture. All rights reserved. BIG BANG DISRUPTION COMPRESSIVE DISRUPTION DIGITAL FRAGMENTATION
  19. 19. BIGBANGDISRUPTION: LEARNMORE www.accenture.com/bigbangdisruption WATCH: FORGET THE BELL CURVE. IT’S NOW A SHARK FIN. WATCH: BIG BANG DISRUPTION TOPPLES TRADITIONAL BUSINESS STRATEGY Copyright © 2018 Accenture. All rights reserved. READ: FINDING YOUR COMPANY’S SECOND ACT: HOW TO SURVIVE THE SUCCESS OF A BIG BANG DISRUPTION READ: BIG BANG DISRUPTION: STRATEGY IN THE AGE OF DEVASTATING INNOVATION
  20. 20. CONTACTUS PAULNUNES Managing Director, Thought Leadership Accenture Research paul.f.nunes@accenture.com LARRY DOWNES Project Director at The Georgetown Center for Business and Public Policy larry@larrydownes.com Copyright © 2018 Accenture. All rights reserved.
  21. 21. Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 250 researchers and analysts spans 23 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations such as MIT and Singularity—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. Visit us at www.accenture.com/research Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 425,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com ACCENTURE RESEARCH ABOUT ACCENTURE Copyright © 2018 Accenture. All rights reserved.
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New, better and cheaper goods are reinventing product and service lifecycles.

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