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

2. 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

3. 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.

4. HERETODAY.GONETOMORROW
NEW,BETTERANDCHEAPERGOODS AREREINVENTING
PRODUCTANDSERVICELIFECYCLES
Nintendo Console Sales: Accelerating Sales, Accelerating Declines
YEAR
UNITSSHIPPEDPERYEAR(MILLIONS)
Copyright © 2018 Accenture. All rights reserved.

5. BIGBANGDISRUPTIONUPENDS
TRADITIONALBUSINESS
RAPID LIFECYCLES CAN WIPE OUT WHOLE INDUSTRIES
“THEREARE
NOSECOND
ACTSIN
AMERICAN
LIVES.”
F. SCOTT FITZGERALD
Copyright © 2018 Accenture. All rights reserved.

6. 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.

7. 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.

8. THREEPROBLEMSFORINCUMBENTS
Copyright © 2018 Accenture. All rights reserved.

9. YOUCAN’TSEEITCOMING
*Source: Medeiros, João, “The Startup Fighting Cancer with AI”, Wired, March 22, 2016.
Copyright © 2018 Accenture. All rights reserved.
UNENCUMBERED DEVELOPMENT

10. YOUCAN’TBEATIT
* Elementum website www.elementum.com
Copyright © 2018 Accenture. All rights reserved.
WINS AT ALL THREE STRATEGIC DISCIPLINES

11. 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

12. FOURSTAGESOFBIGBANGDISRUPTION
Copyright © 2018 Accenture. All rights reserved.
YIELD FOUR STRATEGIC IMPERATIVES

13. INDUSTRIESEXPERIENCINGBIGBANGDISRUPTIONTODAY
Copyright © 2018 Accenture. All rights reserved.

14. 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.

15. Copyright © 2018 Accenture. All rights reserved.
SEVEN HABITS OF HIGHLY
VULNERABLE ENTERPRISES

16. HOWCANYOUSURVIVE
BIGBANGDISRUPTION?
Copyright © 2018 Accenture. All rights reserved.

17. 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.

18. 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

19. FINDOUTMORE
ABOUTDISRUPTION
Copyright © 2018 Accenture. All rights reserved.
BIG BANG
DISRUPTION
COMPRESSIVE
DISRUPTION
DIGITAL
FRAGMENTATION

20. 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

21. 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.

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of innovative research techniques with a deep
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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
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