Strategic inflection points refer to times when the fundamentals of a business are about to change, potentially creating opportunities or risks. They can be caused by actions from within a company or external forces. Identifying these points involves analyzing customer relationships, business models, markets and profitability. Tools like organizational value quadrants and profit mapping help recognize problem areas and potential inflection points. Adaptation to inevitable change is critical for corporate survival.

1. Strategic Inflection Points
David Mayes
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2. Strategic Inflection Points:
When & How to Adjust Strategies
David Mayes, Instructor
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3. Strategic Inflection Points
What are they?
What Are
Strategic Inflection Points?
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4. Strategic Inflection Points
What are they?
What Is a Strategic Inflection Point?
“a strategic inflection point is a time in the life of business
when its fundamentals are about to change. That change
can mean an opportunity to rise to new heights. But it may
just as likely signal the beginning of the end”
Andrew S. Grove, Only the Paranoid Survive
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5. Strategic Inflection Points
What are they?
What Are
Strategic Inflection Points?
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6. Strategic Inflection Points
What are they?
Strategic Inflection Points
Andy Grove, Intel's co-founder, also described a strategic inflection
point as "an event that changes the way we think and act."
Inflection points can be a result of action taken by a company, or
through actions taken by another entity, that has a direct impact on the
company. Regulatory changes, for instance, could lead to an inflection
point for a corporation that was previously held back by regulatory
compliance issues. Inflection points in technology include the advent of
the Internet and smart phones. Politically, an inflection point can be
illustrated by the fall of the Berlin Wall or the fall of Communism in
Poland and other Eastern Bloc countries.
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7. Strategic Inflection Points
What are they?
The Only Constant is Change
• Time = transitions & change
– Customer relationships
– Business models
– Primary markets
• Change is inevitable
• Corporate adaptation to change = survival
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8. Strategic Inflection Points
What are they?
The Inflection Point Curve
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9. Strategic Inflection Points
How Do You Recognize Them?
How Do You Recognize
A Strategic Inflection Point?
“At some point on a trail, a hiker realizes that he is lost, but
cannot judge exactly where on the trail or when he became
lost.”
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10. Current State Analysis
• One Method for Identifying an Inflection Point
– Organizational Value Quadrant (OVQ)
– Profit “Heat” Mapping
– Other market analysis tools
Strategic Inflection Points
How Do You Recognize Them?
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11. Strategic Inflection Points
How Do You Recognize Them?
Current State Analysis:
Organizational Value Quadrant (OVQ)
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12. Strategic Inflection Points
How Do You Recognize Them?
Current State Analysis:
Analyze Profit By Customer Grouping
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13. Strategic Inflection Points
How Do You Recognize Them?
Find Problem Quadrants
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14. Strategic Inflection Points
How Do You Recognize Them?
The Only Constant is Change
• Sometimes clear signals and direction are indicated
• Sometimes the indications are less obvious
• Change is nevertheless inevitable
• Corporate adaptation to change = survival
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15. Strategic Inflection Points
How Do You Recognize Them?
How NOT to Analyze Strategic Inflection
Points
“Evolutionary Steps from Strategic Inflection Points to the Next Generation
Spiral Model”
Video:
http://www.youtube.com/watch?v=HOi7innr_mk
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16. Questions?
Strategic Inflection Points
Questions?
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17. Group:
Strategy & Corporate Strategic
Planning Xchange
http://www.linkedin.com/groups?gid=2970066&trk=myg
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Recommendation
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18. Strategic Inflection Points
David Mayes
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