Big bang disruptions are new products that enter the market at a cheaper cost than those they replace. Companies can be left at a disadvantage when they rapidly lose customers, Forbes reported. Consumers have grown more interested finding low-cost, better products, and electronics and communications technologies have experienced the effects of big bang disruptions. Products are starting to get forced out of the market in new industries, such as energy and manufacturing.
These disruptions often arise from the combination of existing technologies in an innovative way, according to the Harvard Business Review. Big bang disrupters may not being trying to compete with other companies to gain a short-term advantage, but unique new products are often more able to solve customer needs. Once big-bang disrupters introduce an innovation into the consumer product market, it usually takes hold quickly.
While computers and smartphones have been dramatically impacted by big bang disruptions, rapidly changing technology could have implications for the automotive industry, Forbes said. Automotive manufacturing is completely computerized, and raw materials are more likely to be strategically sourced. Even basic vehicles are more technologically advance, containing at least 30 computer processors. High-end models may have up to 80. New automobiles have features such as assisted parking and voice recognition.
Consumers have more choices and the ability to research products on the Internet. Shoppers may visit as many as six websites before buying a car, Forbes stated. Car sales may actually decrease in the future due to the availability of ride-sharing and car rentals. Automakers will face new challenges as their supplier networks are redrawn. Disruptive innovations are intended to improve the efficiency of the automotive industry in the long run, resulting in better and cheaper cars for consumers. Vehicle manufacturers will have to adapt to technological advancements.