The industrial age is over. The linear model that served us for half a century and more is now irrelevant. In the past, if we missed a turn to a market, we had time to catch up. By throwing enough resources, the incumbent could overpower the challenger. Size mattered the most. Large Corporations fortified their businesses and guarded their points of competitive advantage.
In the past, the leadership looked for an answer to the question of - how to improve efficiency/productivity/profitability. However, by the time a company squeezes out the last ounce of efficiency from its archaic processes, a new "what" is born every day - What could the customer need next? Today, the competition can come from a completely unrelated industry, or a newbie would invent something that could make our product/service obsolete overnight. So, the conventional competitor analysis is no longer usable. Adaptability has become more critical than intelligence.
The competitor no longer breaks in into your fortress from the front door. In some cases, they drill a tunnel right under your empire. But in most instances, competition avoids your fort, and using guerilla warfare takes away your customers. Then they take away your best talent. The performers no longer want to work in a control freak environment. They look for an aspirational organization that gives them autonomy. If you do not believe this, look at the career choices of graduates from top business schools. Having cut off your oxygen (read customers and talent), the fort fails by itself. The challenger finally takes away the assets of the incumbent.
Constant and disruptive innovation is the only sustainable competitive advantage. If you want to know how you can accomplish this goal, read the thread of these blogs. I will put out a couple of them every week.
Subodh Gadgil Feb 12, 2023
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