To survive—and even thrive—amid big bang disruption, companies must learn the new shape of new product diffusion and the four stages of this curve, one that loosely tracks the metaphor of the big bang theory of the universe. They must also embrace the new rules of strategy and competition that follow.

For many companies, peak condition is sustained through digital fitness—an ability to invest in and innovate using digital technologies. However, Accenture research has found that many companies are not actively building their digital muscles, even when they are in a strong financial position. When we examined the financial and digital performance of over 300 global companies, we found one category of business that was surprisingly strong on financial performance, especially profitability, but comparatively weak on digital performance. We call this group Business Leaders. Business Leaders have maintained financial strength thanks to their legacy business but, if not renewed over time, the strong legacy of today can become a challenge tomorrow. Accenture research shows that Business Leaders underperform on four broad company activities: a) digital strategy planning and execution, b) digital production and delivery, c) digital customer experience management, and d) digital corporate culture and operations. As a result, Business Leaders need to: 1) get motivated to excel at serial investments, 2) renew their business model, but not alone, and 3) make cultural disruption a routine. Business Leaders may underestimate the impact that nimbler, more tech-savvy competitors can have on their current financial lead position. To get fit to lead in the future, these companies must focus on investment, business model renewal, and a persistent culture of innovation.

Companies worldwide spent US$1 trillion on digital technology in 2016. Unfortunately, for many businesses, this investment is not corresponding with financial returns. While some companies excel at adopting innovative digital technologies, many are only achieving incremental business improvements. Organizations need to radically rethink their approaches and develop bold digital strategies to harness technologies and unlock new sources of growth. Only 6 per cent of companies that invested in digital managed to translate those investments into sustained financial gains. We identified these as Digital High Performers. To make the leap from Digital Leaders to Digital High Performers, Digital Leaders must master using digital to drive revenue growth and increase investor confidence. Their overemphasis on efficiency and profitability indicates that Digital Leaders might be making trade-offs they cannot afford, putting their growth potential at risk. Four strategies are critical to organizations that want to get the most out of their digital investments: 1) get immersed in new ecosystems; 2) unlock opportunities to commercialize innovative ideas; 3) move beyond purely transactional customer relationships; and 4) embrace cultural and structural shifts. Digital Leaders must continuously assess the effectiveness of their digital investments and pursue overhauls and organizational designs, even if the initial efforts are risky. Commitment to digital alone does not guarantee financial success. New, bold strategies that leverage digital technology as an enabler and a driver of change in a legacy organization are vital for companies that wish to move beyond the verge of high performance. Digital Leaders don’t need greater investment; they need greater follow-through and the courage to lead transformation with tenacity.

In recent years a new--disquieting--form of disruptive innovation has emerged. It doesn't follow Clayton Christensen's classic model, entering the market as a cheap substitute to a high-end product and then gradually increasing in quality and moving up the customer chain. Instead, the innovation beats incumbents on both price and quality right from the start and quickly sweeps through every customer segment. This kind of "big bang" disruption can devastate entire product lines virtually overnight. Look at the effect that free navigation apps, preloaded on smartphones, had on the market for devices made by TomTom, Garmin, and Magellan. Big-bang disruptions often come out of the blue from people who aren't your traditional competitors. Frequently, they're developed by inventors who are just doing low-cost experiments with existing technologies to see what new products they can dream up. Once launched, these innovations don't adhere to conventional strategic paths or normal patterns of market adoption. That makes them incredibly hard to combat. The authors, who've spent 15 years studying marketplace disruptions, offer some strategic principles to help businesses survive big bangs: Be on the watch for failed experiments that could signal that a big bang is brewing in your industry. Find ways to slow the disruptive innovation down and to leverage your surviving assets in another business. These assets will usually be intangible; other kinds of assets generally lose value quickly after a big bang and must be shed quickly. Diversifying into new kinds of business will protect your company. Though technology- and information-intensive firms are most vulnerable to big bangs, mature industries face this threat, too. Credit cards, automobiles, and education, for instance, are all experiencing early warning signs. But in every industry, big-bang disruption will be keeping executives in a cold sweat for a long time to come.

Marketers face new challenges in the era of crowdsourced opinions, where sites like TripAdvisor and Yelp allow consumers to share opinions that may contradict marketing messages. This article identifies ten sources of influence that can sway consumers, four of which (social networks, opinion aggregators, recommendation engines, and price comparison services) have only gained prominence recently. With the shift from traditional marketing channels to digital realms, consumers now comprehensively inform themselves, loudly inform others, and make purchase decisions at their own pace. Marketers can take four approaches in order to gain value from the crowd. 1) Endorse the crowd: Bringing the “voice of the crowd” into marketing efforts can provide the credibility and authenticity that consumers seek. 2) Venture among the crowd: Engaging with consumers directly, e.g. through social media, can highlight a company’s transparency and build trust with consumers. 3) Listen to and learn from the crowd: Monitoring online discussions of user needs, desires, and trends can provide highly valuable data. 4) Invite the crowd inside: Companies like WebMD offer users a diverse portfolio of guidance and a useful forum in which to hold their own conversations.

Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.

Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.

Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.

The number of international tourist visits will more than double in the next dozen years. As demand for access to hot spots outpaces capacity, some companies will profit by creating destinations. And all businesses will need to adopt strategies for claiming - or avoiding - prime turf.

They're nominally and ultimately responsible for strategy, but today's CEOs have less and less time to devote to it. As a result, CEOs are appointing "chief strategy officers" (CSOs)--executives specifically tasked with creating, communicating, executing, and sustaining a company's strategic initiatives. In this article, three authors from Accenture share the results of their research on this emerging organizational role. The typical CSO or top strategy executive is not a pure strategist, conducting long-range planning in relative isolation. Most CSOs consider themselves doers first, with the mandate, credentials, and desire to act as well as advise. They are seasoned executives with a strong strategy orientation who have usually worn many operations hats before taking on the role. Strategy executives are charged with three critical jobs that together form the very definition of strategy execution. First, they must clarify the company's strategy for themselves and for every business unit and function, ensuring that all employees understand the details of the strategic plan and how their work connects to corporate goals. Second, CSOs must drive immediate change. The focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. Finally, a CSO must drive decision making that sustains organizational change. He or she must be that person who, in the CEO's stead, can walk into any office and test whether the decisions being made are aligned with the strategy and are creating the desired results. When decisions below the executive suite aren't being made in accordance with strategy, much of the CSO's job involves learning why and quickly determining whether to stay the course or change tack.

This is an MIT Sloan Management Review article. For several years now, marketers have been urged to embrace one-to-one marketing and to offer micro-segmented consumers customized products and services through targeted outreach. While the "market of one" approach can pay off, say the authors, it requires a significant upfront investment, including: implementing customer relationship management software applications; filtering, enhancing, and cleaning customer data; and personalizing interactions (e-mail, billing, offers, and so on). These activities take time and the coordination of multiple parts of the organization (marketing, customer service, sales, information technology), which can be daunting for companies trying to react quickly to a changing environment. In addition, those systems have often produced disappointing results because their use was not well integrated with corporate strategy. Also, micro-marketing strategy, on its own, is too narrow. Companies still need to reach broad groups of people with messages that are not dependent on an individual's decision to open an envelope (whether virtual or physical), pick up the phone, or click on a box. But broad-based, broadcast media is ineffective and expensive. Fortunately, there are alternative solutions, such as one-to-one targeting and the broadcasting of 30-second television spots. The author's research on trends in marketing spending and consumer attitudes about advertising reveals four strategies available to companies that want to reach broad groups of people without breaking their marketing budget. The strategies are liberally illustrated with examples from Nike, Microsoft, UBS, Delta, Sony, Procter & Gamble, Citibank, Nextel, Honda, Nokia, and McDonald's, among others.

As president of Scotch whisky maker Glenmeadie, Bob Littlefield is pleased to see the results of his CMO's recent marketing initiatives. There are new interactive capabilities on the company's Web site, a product information call center, and numerous other customer interfaces designed to deepen consumers' connection to the brand. Thanks to these front-end innovations, sales are up--and largely because of more loyal purchasing behavior, research shows. But not all the news is good. Glenmeadie's CFO says the marketing programs account for half the company's costs. Meanwhile, Glenmeadie's master distiller, Ellis Cameron, resents the fact that, with so much money going toward enhancing customer relations, there isn't enough left for his R&D efforts. In a meeting with Bob, he launches into a tirade about priorities. "There's an old expression," Ellis says, "Build a better mousetrap, and the world will beat a path to your door." Glenmeadie, he says, is neglecting the customer's basic need, "We've given up on redesigning his mousetrap and are trying to trap him instead!" Commenting on this fictional case study in R0610A and R0610Z are David Herman, president of luggage maker Hartmann; Marketspace's president, Jeffrey Rayport; Stephen Dull, vice president of strategy at VF; and Joe Scafido, who leads innovation at Dunkin' Brands.

As president of Scotch whisky maker Glenmeadie, Bob Littlefield is pleased to see the results of his CMO's recent marketing initiatives. There are new interactive capabilities on the company's Web site, a product information call center, and numerous other customer interfaces designed to deepen consumers' connection to the brand. Thanks to these front-end innovations, sales are up--and largely because of more loyal purchasing behavior, research shows. But not all the news is good. Glenmeadie's CFO says the marketing programs account for half the company's costs. Meanwhile, Glenmeadie's master distiller, Ellis Cameron, resents the fact that, with so much money going toward enhancing customer relations, there isn't enough left for his R&D efforts. In a meeting with Bob, he launches into a tirade about priorities. "There's an old expression," Ellis says, "Build a better mousetrap, and the world will beat a path to your door." Glenmeadie, he says, is neglecting the customer's basic need, "We've given up on redesigning his mousetrap and are trying to trap him instead!" Commenting on this fictional case study in R0610A and R0610Z are David Herman, president of luggage maker Hartmann; Marketspace's president, Jeffrey Rayport; Stephen Dull, vice president of strategy at VF; and Joe Scafido, who leads innovation at Dunkin' Brands.

As president of Scotch whisky maker Glenmeadie, Bob Littlefield is pleased to see the results of his CMO's recent marketing initiatives. There are new interactive capabilities on the company's Web site, a product information call center, and numerous other customer interfaces designed to deepen consumers' connection to the brand. Thanks to these front-end innovations, sales are up--and largely because of more loyal purchasing behavior, research shows. But not all the news is good. Glenmeadie's CFO says the marketing programs account for half the company's costs. Meanwhile, Glenmeadie's master distiller, Ellis Cameron, resents the fact that, with so much money going toward enhancing customer relations, there isn't enough left for his R&D efforts. In a meeting with Bob, he launches into a tirade about priorities. "There's an old expression," Ellis says, "Build a better mousetrap, and the world will beat a path to your door." Glenmeadie, he says, is neglecting the customer's basic need, "We've given up on redesigning his mousetrap and are trying to trap him instead!" Commenting on this fictional case study in R0610A and R0610Z are David Herman, president of luggage maker Hartmann; Marketspace's president, Jeffrey Rayport; Stephen Dull, vice president of strategy at VF; and Joe Scafido, who leads innovation at Dunkin' Brands.

Over the past decade, the distribution of household incomes has shifted so much that a much larger proportion of consumers now earns significantly higher-than-average incomes--while still falling short of being truly rich. As a result, what used to be a no man's land for new product introductions has in many categories become an extremely profitable "new middle ground." How can marketers capitalize on this new territory? The key, say the authors, is to rethink the positioning and design of offerings and the ways they can be brought to market. Procter & Gamble, for instance, redefined the positioning map for tooth-whitening solutions by offering its $35 Whitestrips. P&G wisely positioned itself between the $400 bleaching technique that dental centers popularized and $2 to $8 whitening toothpaste. In product categories where the middle ground is already populated, it's important for companies to design or redesign offerings to compete. An example is the Polo shirt. How do you sell a man yet another one after he's bought every color he wants? Add some features, and call it a golf shirt. Here, marketers have introduced designs based on the concept of "occasional use" to stand out. Finally, companies wishing to reach the almost rich can change how they go to market. Consider Target Stores, which has pioneered a focus the company itself characterizes as upscale discount. The strategy has made Target an everyday shopping phenomenon among well-heeled urbanites and prosperous professionals.

Companies struggling to rejuvenate tired brands may want to look east. SoBe beverages, Nissan, and others are exploiting Westerners' fascination with products that are--or merely seem--Asian.

Every company makes choices about the channels it will use to go to market. For instance, traditionally, customer demographics guided the decision to sell through a discount superstore or a pricey boutique. It was a fair assumption that certain customer types were held captive by certain channels. The problem, the authors say, is that today's customers have become unfettered. As their channel options have proliferated, they've come to recognize that different channels serve their needs better at different points in the buying process. The result is "value poaching." For example, certain channels hope to use higher margin sales to cover the cost of providing expensive high-touch services. Potential customers use these channels to do research, then leap to a cheaper channel when it's time to buy. What does this mean for your go-to-market strategy? The authors urge companies to make a fundamental shift in mind-set toward designing for buyer behaviors, not customer segments. A company should design pathways across channels to help its customers get what they need at each stage of the buying process. Customers are not mindful of channel boundaries--and you shouldn't be either.

Sheldon Bloomfield, senior vice-president of character properties for Multi-Media Worldwide, has a hit with Baby Ruby. Originally a children's book character, Ruby has become the fastest growing kids' show on television. In fact, Bloomfield's starting to wonder whether Baby Ruby is his evergreen property--the one that will generate licensing income for years to come. Bloomfield has many offers on the table, including one from the nation's leading fast-food franchiser to make Baby Ruby its next kids' meal tie-in. But the fact is, no one wants to risk making a big financial commitment to a relatively new property, and most of the companies are demanding exclusives--which would eat away at Bloomfield's profits even more. The pressure is on. If Bloomfield doesn't make these deals, he may not get another chance. But if he does make the deals, and Baby Ruby ends up on everything from T-shirts to collectible spoons, the public may lose all interest in her. In R0212A and R0212Z, commentators Grant McCracken, a visiting scholar at McGill University and the author of Culture and Consumption; Jack Soden, CEO of Elvis Presley Enterprises; Timothy Rothwell, a senior vice-president of Universal Studios Consumer Products Group; and Bill Griffith, creator of the comic strip Zippy the Pinhead, offer their advice in this fictional case study.

Sheldon Bloomfield, senior vice-president of character properties for Multi-Media Worldwide, has a hit with Baby Ruby. Originally a children's book character, Ruby has become the fastest growing kids' show on television. In fact, Bloomfield's starting to wonder whether Baby Ruby is his evergreen property--the one that will generate licensing income for years to come. Bloomfield has many offers on the table, including one from the nation's leading fast-food franchiser to make Baby Ruby its next kids' meal tie-in. But the fact is, no one wants to risk making a big financial commitment to a relatively new property, and most of the companies are demanding exclusives--which would eat away at Bloomfield's profits even more. The pressure is on. If Bloomfield doesn't make these deals, he may not get another chance. But if he does make the deals, and Baby Ruby ends up on everything from T-shirts to collectible spoons, the public may lose all interest in her. In R0212A and R0212Z, commentators Grant McCracken, a visiting scholar at McGill University and the author of Culture and Consumption; Jack Soden, CEO of Elvis Presley Enterprises; Timothy Rothwell, a senior vice-president of Universal Studios Consumer Products Group; and Bill Griffith, creator of the comic strip Zippy the Pinhead, offer their advice on this fictional case study.

Sheldon Bloomfield, senior vice-president of character properties for Multi-Media Worldwide, has a hit with Baby Ruby. Originally a children's book character, Ruby has become the fastest growing kids' show on television. In fact, Bloomfield's starting to wonder whether Baby Ruby is his evergreen property--the one that will generate licensing income for years to come. Bloomfield has many offers on the table, including one from the nation's leading fast-food franchiser to make Baby Ruby its next kids' meal tie-in. But the fact is, no one wants to risk making a big financial commitment to a relatively new property, and most of the companies are demanding exclusives--which would eat away at Bloomfield's profits even more. The pressure is on. If Bloomfield doesn't make these deals, he may not get another chance. But if he does make the deals, and Baby Ruby ends up on everything from T-shirts to collectible spoons, the public may lose all interest in her. In R0212A and R0212Z, commentators Grant McCracken, a visiting scholar at McGill University and the author of Culture and Consumption; Jack Soden, CEO of Elvis Presley Enterprises; Timothy Rothwell, a senior vice-president of Universal Studios Consumer Products Group; and Bill Griffith, creator of the comic strip Zippy the Pinhead, offer their advice on this fictional case study.