The document discusses different eras of business models from 1950 to present day and strategies for companies to thrive in today's changing environment. It suggests companies built from 1950-1990 focused on lasting success, those from 1994-2002 aimed to be sold, and current companies from 2002-2015 need to continuously innovate and adapt to changing conditions. It advocates for reframing problems, creating movements to shift minds, and systematizing innovation without systems to stay relevant through constant change.
2. Top companies that outperformed
Built to Last their competitors: 3M, Sony, IBM, HP,
1950-1990 Motorola, Walt Disney, Boeing…
Built to Flip Companies that were built to be sold:
1994-2002 PayPal, WebMD, MyCFO, Netscape…
Companies that are built to thrive:
Built to Thrive
Google, Amazon, Toyota, Dell,
2002-2015
Neopets, Apple, Nokia?
The world is accelerating change, innovation is the only
insurance against irrelevance…
- Gary Hamel
3. Create movements, shift minds,
think differently, and reframe
Reframe in order to reconfigure
Create chaos, but then lead the pack as a prime mover
5. Create movements, shift minds,
think differently, and reframe
Prime Mover:
1990’s: Innovation to Sales
2000’s: Sales to Innovation
“make the best products”
Fast Follower:
1990’s: Follower to Sales
2000’s: Sales to Bureaucracy
“be the richest at all cost”
6. Create movements, shift minds,
think differently, and reframe
How do you systematize innovation?
Steve Jobs back
A: The system is that there is no system.
at Apple as CEO
In interviews and on blogs, some employees
say you've instituted bureaucracy that is
hampering innovation so much so that they
question whether you should be CEO. What's
your response?
A: At the end of the day, the proof is in the output.
Steve Ballmer Do we have the innovation output? Do we have the
market share? Do we have the customer
takes over as satisfaction? Do we have the numbers? And do we
CEO at have the talent? So you go through each one of
Microsoft those things and say, how are we doing? We've
grown from 18% of the profits of the top 25
companies in our industry to 23% of the profits of
the top 25 companies in our industry over the last
five years. Profits are up over 70%, where the
industry profit is up about 35%. Pretty good.
7. Understanding the business
landscape as an ecosystem
Challenge business, industry and social norms
Reason with uncontaminated thinking
Understand divergent and convergent cycles
Don’t be chained to the value chain, towards value networks
Redraw industry boundaries
8. Understanding the business
landscape as an ecosystem
Google bought YouTube a year or so ago
US$1.65billion [about R11.8billion]
YouTube, founded in 2005, is a consumer
media company helping people to share
videos for free...
10. A new era emerging…
# Brand Brand Value ($m) Brand Value Change
1 Google 66,434 77%
2 GE (General Electric) 61,880 11%
3 Microsoft 54,951 -11%
4 Coca Cola 44,134 7%
5 China Mobile 41,214 5%
6 Marlboro 39,166 2%
7 Wal-Mart 36,880 -2%
8 Citi 33,706 9%
9 IBM 33,572 -7%
10 Toyota 33,427 11%
11. Become a pace setter by
driving ecogenetic changes
Many small changes
Make new interconnections never thought possible before
Bring together the realms of thinking and doing
Learn fast, execute systematically
12. Become a pace setter by
driving ecogenetic changes
eBay bought Skype a few months ago for
US$4.1billion [about R25.8billion]
Skype, founded in 2003, is a supplier of a free
internet telephony product…
…and lost money last year on total revenues of
about US$7million
13. Shape your business around
customer innovation
Design an alternate future for your customer
Get the customer to co-design and
co-produce your offering
Customerize your proposition
Separate participative customers from
economic customers
15. Shape your business around
customer innovation
Amazon Patents 5,960,411 -- Method and system for placing a
purchase order via a communications network
(One-click purchase).
5,715,399 -- Secure method and system for
communicating a list of credit card numbers over
a non-secure network.
5,727,163 -- Secure method for communicating
credit card data when placing an order on a non-
secure network.
5,826,258 -- Method and apparatus for
structuring the querying and interpretation of
semistructured information.
5,963,949 -- Method for data gathering around
forms and search barriers.
5,999,924 -- Method for producing sequenced
queries.
6,029,141 -- Internet-based customer referral
system (Affiliate program).
6,525,747 -- Method and system for conducting
a discussion relating to an item.
16. Innovate offerings and not just
products and services
Reconfigure value creating systems
Assemble offerings from products and services
Integrate intelligence into proposition
Products are frozen knowledge and services are fluid
experiential and contextual
17. Innovate offerings and not just
products and services
Centered on the theme quot;Innovation into the Future,quot; the
Toyota Global Vision 2010 proposes the corporate image for
which all of Toyota should strive and the paradigm change
Toyota should undergo.
“As our society fast approaches a historic
turning point, new values are beginning to
emerge. In response to this era of sweeping
change, Toyota is working hard to create
breakthroughs.“
20. Mobilize your capabilities
Leverage automation capabilities
If it doesn’t work internally, move it outside
Challenge execution dogma
Prototype early, execute fast and correct quickly
22. Manage economies of
scope to achieve
economies of scale
Focus on innovating the human experience
and automate all else
Expand your innovative ideas after you’ve
defined the context; flipping the funnel
Leverage integrated value networks to
create new options for the future
24. Change your paradigm from
the information age to the
age of access
Products are services, services are products
It’s in the way you deliver it
Access to networks
Beyond information, fifth megawave of transformation
26. Learn from an
uncontaminated generation
Frame into the minds of the young
Experiment like you’ve never done it before
Discuss it like it’s never happened
Learn across borders; use another industry to test your ideas
Play, think, do
28. Lead by living your business
philosophy
Translate your vision into a philosophy people can
believe in
Allow your people to remove themselves from their
situation traps