Big Bang Innovation and Effects of Creative Destruction

Today we live in an age of acceleration and discovery that requires business models and the products they produce to be continually evaluated against potential disruptive technologies. In previous decades business experienced slower product evolution focused on reducing price and increasing functionality.

The traditional accepted model of development is based on evolutionary innovations reducing the price and increasing functionality however today's speed market requirements demands more.

Lets talk science and astrophysics:

Extrapolation of the expansion of the universe backwards in time using general relativity yields an infinite density and temperature at a finite time in the past. This singularity signals the breakdown of general relativity and thus, all the laws of physics. This singularity is sometimes called "the Big Bang", but the term can also refer to the early hot, dense phase itself, which can be considered the "birth" of our universe.

What does this mean in the context of economic modes?

These struggles can be explained by the paradoxical concept of "Creative Destruction", coined by economist Joseph Schumpeter in 1943, and defined as the process through which something new brings about the demise of whatever existed before it.  

In 1965, Arno Penzias and Robert Wilson serendipitously discovered the cosmic background radiation, an Omani-directional signal in the microwave band. Through the 1970s the radiation was found to be approximately consistent with a black body spectrum in all directions; this spectrum has been red-shifted by the expansion of the universe, and today corresponds to approximately 2.725 K. This tipped the balance of evidence in favor of the Big Bang model, and Penzias and Wilson were awarded a Nobel Prize in 1978. Think about this out of the greatest destruction was born everything we know today.

So let's examine current day disruptive business cycles:

Take a moment and consider the context of the previous information, the universe will evolve in an organized predictable schema and simultaneously reorganizes in ways that are spontaneous. This too happens in business, paradigms that are changed in very short periods can overnight challenge the best leadership and companies.  Your challenge is to observe or even better create these disruptions  in business models and make proper adjustments to to ensure continued market relevance.

An example from my past

In 1972, at five years of age, while attending my father’s family Christmas party at Xerox, I experienced this concept first hand.  During the party I had an opportunity to take a xerographic image of my hands.  You may think ......no big deal .....the office copier was technology commercialized in 1958 however this copier scanned and produced a high resolution color image. Color copiers would not become commercially available until 1985 and not from Xerox but Cannon signaling the fall of dominance that would come for Xerox. Xerox failed to realize the scope of their own inventions.

Leadership is not as much as current market dominance as it is in sustaining long term potential for business growth and success.

Understand these are my own personal and comments and likes if you find this information informative and meaningful please provide comments and Likes for the post.

Thanks ,

Kevin