How Big Data Is Changing Disruptive Innovation

"[...] incumbent managers have a short term incentive to ignore the challenge [of disruptive innovation] — making best use of their existing infrastructure. Taxi companies tried to leverage regulation to preserve the value of their medallions and drivers. Nokia tried frivolously to protect its closed ecosystem and preserve employment for their thousands of Symbian focused staff members. And you can be certain that Merck, Pfizer, and Roche have strong incentives to make the best use of their high-end R&D functions before embracing the radically different path that 23andMe might take."

"And over the long term, each of these short-term decisions could lead to failure."

"With information at the core of most modern disruptions, there are new opportunities to attack industries from different angles. Uber built a platform in a fragmented limo market that let it come into transportation and logistics more broadly. Netflix captured your eyeballs through streaming video and used the data it had to blow up the content production process. Google mapped the world, and then took its understanding of traffic patterns and street layouts to build autonomous cars."

From Harvard Business Review:
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