Some of the examples and statements about companies are unfortunately a bit dated such as Hamel's remark in that Apple will be not more than a footnote in the history of Information Technology.
What counted was not so much how they positioned themselves against long-standing rivals, but how creatively they used their core competencies to create entirely new markets. Soon the world will be divided into two kinds of organizations: those that can get no further than continuous improvement and those that have made the jump to radical innovation.Now, let me be clear: there is nothing wrong with incrementalism. What we n eed a re co mpa ni e s th a t a r e ca p a bl e of self-renewal, organizations that are capable of c o ntinua lly rei nv en ti n g th e m se lv e s and the industries in which they compete. First the revolutionaries will take your markets and your customers. Likewise, if you willingly relinquish your responsibility to influence the destiny of the organization to which you devote the majority of your waking hours, can you really claim to be anything more than an employee? All too often, industry incumbents mistake historical rivals for the enemya potentially catastrophic mistake in the age of revolution. The unstated assumption is that incrementalism is low-risk and radical innovation high-risk. Reeal model Bedford, Efficient facilitator and educator can use Reeal model because being in critical care setting may inflict a risk reaction. If youre trying to grow revenues or slice costs with a straight line approach, youre going to nd yourself facing an innovation gap with competitors who have managed to break conventions and achieve step-function changes. And should they commit themselves to recovering the ground theyve lost, they can expect a brutal ght with their new rivals. And too many senior executives secretly long for a more compliant organization rather than a more vociferous one. Old brick: Change starts at the top. In a recent survey across 20 industries, I found that only 11 percent of companies had been able to grow revenues twice as fast as their industry over a decade, and only 7 percent had been able to grow shareholder returns at twice the industry average.
It is a book for those who care so much about their customers, their colleagues and their own legacy that they simply cant imagine not leading the revolution. And in less than ten years as a public company, Kohls, the Wisconsin-based retailer that reinvented the department store around no hassles shopping, had accumulated a market value equal to that of both Sears and JCPenneya particularly noteworthy accomplishment when one considers that Kohls operated just department stores to Sears and Penneys 1, The top-down perspective starts with scanning business environments and results in setting targets and allocating resources, whereas bottom-up perspective is more concerned with analysing trends in sales and customer behaviour as primary stages of strategy formulation.
This is the challenge of industry revolution. New brick: Diversity and variety are the keys to innovation. This is a book for those who are unwilling to play it safe. Hamel states that it is impossible to predict the future, but that it is possible to imagine it.Instead, the company is dealing with the threat of unconventional competitors and new business models by launching a blizzard of new services and productsincluding Passport, Hailstorm, the X-box and a host of others. Today, a company must be capable of reinventing its strategy, not just once a decade or once a generation in the midst of a crisis when it trades out one CEO for another, but continuously, year after year. Bill Gates and his team at Microsoft understand that in the age of revolution, there is no defense, theres only offense. Spin-offs, de-mergers, share buybacks, tracking stocks, value-based management programsall these things release wealth, but they dont create wealth. As research partner, sounding board and writer, he played a critical role in documenting the successes of real-world corporate activists and in describing the practices of companies that seem to have found the secret of perpetual innovation. This is a book for those who want to make a difference—in their world and in their organization. But most of it all, it must ignite a sense of possibility. So while they may deliver onetime gains to shareholders, they dont fundamentally change a companys long-term earning potential. This is what UPS did when it built a billion-dollar-a-year logistics and supply chain management business. In a recent survey across 20 industries, I found that only 11 percent of companies had been able to grow revenues twice as fast as their industry over a decade, and only 7 percent had been able to grow shareholder returns at twice the industry average. I'm glad to say Hamel's views rest on a solid foundation of fact. Youve spent hundreds of millions of pounds over several decades trying to convince consumers that your brand of petrol is better than the next guys, and suddenly its being sold as a loss leader along with milk and eggs. Several of these guidelines have to do with adapting some of the methodologies of Silicon Valley in a company.