Product vs. Strategy Loonshots: Which Disruption Will Change Your Industry?

Why the Next Big Thing Might Be a New Way of Doing Business

When we think of innovation, we often picture dazzling new products: the smartphone, the jet engine, the digital camera. But according to Safi Bahcall’s 'Loonshots,' the most disruptive changes often come not from new gadgets, but from new ways of doing business. Bahcall divides loonshots into two types: P-type (product) and S-type (strategy). While P-type loonshots are radical new technologies, S-type loonshots are innovative business models or processes that can quietly upend entire industries.

Consider the airline industry. When deregulation hit, it wasn’t just better planes that won the day, but smarter strategies: yield management, frequent flyer programs, and new pricing models. These S-type loonshots, though less glamorous, proved more disruptive than any single piece of technology. Yet, organizations are often blind to such shifts, focusing all their energy on the next big product while competitors quietly change the rules of the game.

For leaders, the lesson is clear: don’t just chase the shiny. Learn to spot and nurture both product and strategy loonshots. Balance is key—companies that ignore S-type innovations risk being blindsided by new entrants who do things differently.

So, which disruption will change your industry? It might not be the next gadget, but the next bold rethink of how business is done. 2 4