Incremental changes won’t be enough to survive
The strategic conversation in most companies has shifted from cost-cutting to growth and expansion. But how do companies get out of the “survival mode,” identify the right new products and services, and motivate employees to create real competitive advantage?
Companies that do the same old things, make only incremental changes, and demonstrate “me-too” thinking will get left behind in today’s rapidly changing, hyper-competitive, disruptive world.
Did you notice when:
- When online movie rental websites such as NetFlix startet eroding Blockbuster revenue streams?
- When The Kindle ravaged the publishing business?
- When Groupon threatened retail?
- When Expedia obsoleted travel agents?
- When collaborative consumption started to disrupt traditional business models?
- When Apple introduced iPhone and brought Nokia into trouble? (1)
- When Apple changed the PC landscape by introducing iPad?
- When Kodak filed for bankruptcy protection?
- When Linn stopped producing CD-players to concentrate entirely on network-players?
Unfortunately to many companies are stuck in the jar. Not being able to let go of the past, of the past success, of clinging on to it, almost always creates Win-Lose situations. It is blocking the opportunity to develop and grow. The power of successful companies is that they recognize well in advance when change is going to take place and innovation is needed.
Picture: AP – Bear gets head stuck in jam jar.
Does future success require standing out from the crowd, being radically different and fundamentally changing the game? One thing is for sure: Organizations, and the people within them, must constantly re-invent themselves to remain competitive. Sustaining success depends on an organization’s ability to adapt to a changing environment.
Strategy today is less about conceiving and executing a brilliant master plan and more about shaping an organization that can quickly launch and learn from smart innovations.
(1) Nokia has lost almost 70 billion euros of market capitalization since Apple Inc. started shipping the iPhone in 2007 – Bloomberg April 2012
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Incremental changes won’t be enough to survive — http://www.torbenrick.eu/t/r/bfk
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