![]() ![]() Intel did put some of its best people in the i860 RISC processor. How could we take our best people who generate revenue and who help pay our salaries and put them on speculative new projects? We just have to do it. Also – it is easier and more effective to run experiments when the business is healthy. Andy talks about the culture of experimentation, and when running experiments, chaos is bound to happen. Everyone needs to adapt to changing times. Employees may be very successful when they start work and build the organization up however, we can’t live on past glory. Let Chaos Reign– Andy talks about the Inertia of Success, and it is not a good thing. Andy also quotes Peter Drucker’s definition of an entrepreneur- One who moves resources from areas of lower productivity and yield to areas of higher productivity and yield. It is important to differentiate between Signal and Noise. Andy recommends not being deceived by the first version of a product and ignoring strategic inflection points. The first version of the product is usually not great. Also, the middle managers are good at finding them out (Andy calls them Cassandras). Very rarely are strategic inflection points obvious. ![]() It will help identify the strategic inflection points. Had they not, they would no longer exist as a company.įear (being paranoid), unhappy customers– It is good to be on the lookout for such things. Intel transitioned from being a memory company to a microcomputer company. ![]() They were hit hard by Japanese competition by price. You need to change your game, and as you know, it is healthy to change the game when your business is still healthy.Īndy also talked about how they almost missed the strategic inflection at Intel. Regulatory authorities could also play a key role in strategic inflection points. Travel industry – Airlines were paying a 10% commission to the travel agents. However, in 1940 he finally surrendered to spoken dialogue with the Great Dictator in 1940- which was the future. He resisted change and was able to make successful silent films through the 1930s. People even questioned it- Why would anyone want to talk in movies? Even Charlie Chaplin questioned it. The Jazz Singer debuted on Oct 6 – 1927 – the first movie with sound- Until then, movies did not have sound. ![]() Andy also talks about delivering computers via mail (Michael Dell) – who would have thought computers could have been delivered via mail? If you base your business on the volume leader, you will be going after a larger business yourself. However, if you look at it today (Apple weathered the storm pretty well – by still following the vertical approach). This is a 10X force, and we need to up our game.Īndy talked about the Old Vertical Computer Industry (IBM making chips, computers, operating systems, application software, sales, and distribution) and how it transitioned to the horizontal computer industry (chips-Intel, computer, Compaq, Dell, operating systems (windows, mac), application software (word), sales and distribution (retail stores, dealers), where you have a vendor taking care of each piece of the market. Little by little, they keep making progress, changing the way businesses operate. (or) what Amazon has been doing for the last 20 years. A recent example of this could be what Uber did to the taxi companies. This could also be called the strategic inflection point. There could be a 10X change happening in your business. Our job could be taken away because of this strategic inflection point. We are not just competing with our co-workers we are competing with millions of people out there and also with other businesses. Andy refers to each one of us as sole proprietors of our own businesses. This not only applies to companies, but it also applies to each one of us as individuals. It could also mean you may go out of business or have a slow death. This change could mean an opportunity to rise to new heights. The leader (read CEO) may be the last one to notice this change. It is a time in the life of a business when the fundamentals are about to change. I was preparing to speak at the DCKAP Summit in Los Angeles, CA, and Selvan D, our Director of Marketing, recommended that I read Only the Paranoid Survive, written by the former legendary CEO of Intel.Īndy Grove, in his book, speaks about the strategic inflection point. ![]()
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