Colossal effects in transition metal oxides caused by intrinsic inhomogeneities.
The influence of quenched disorder on the competition between ordered states separated by a first-order transition is investigated. A phase diagram with features resembling quantum-critical behavior is observed, even using classical models. The low-temperature paramagnetic regime consists of coexisting ordered clusters, with randomly oriented order parameters. Extended to manganites, this state is argued to have a colossal magnetoresistance effect. A scale T(*) for cluster formation is discussed. This is the analog of the Griffiths temperature, but for the case of two competing orders, producing a strong susceptibility to external fields. Cuprates may have similar features, compatible with the large proximity effect of the very underdoped regime.