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Success breeds
  |
 complacency.
Complacency
breeds failure.
Only the
 
 Paranoids
survive !

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 Strategic inflection points
Examples:
ATM /---/ Banking
(New techniques,
(New approaches,
(New technologies

Superstores /---/ Small shops

upsets the old order and change
the rules of the game.

Microprocessors /---/ Computing

 nflection Point ʹ 10X change
Defore After
Complementors
Competitors Complementors
Competitors

Customers Customers

The Business The Business

Suppliers Rivalry within

the industry

Suppliers Rivalry within

Threat of New industry
entrants

Threat of New
entrants
 Memory business crisis

ntel : Founded on 1968, core business

based on Semiconductor technology.
64 bit Ú  6 bit Ú 104 bit (A mega hit)
First mover ʹ 100% memory market
Entering Strategic nflection Point
Japanese memory producers ʹ
working on 16K, 64K,  6K bit
memories
High quality product, low price ʹ Took
over semiconductor industry
198 Ú ü

 



Opportunity to catapult to new level

A small R&D team working on 386
microprocessor.
Eventually changed identity to Micro
Computer company
͚ntel inside͛ campaign
 Examples of 10X change
Competition

General Stores 10X change Walmart

Technology

Silent movies 10X change Sound movies

Customers

Model T car (FORD) 10X change Varied product

lines of car (GM)
 dentifying nflection Points
SP appear slowly instead of a bang. Not clear until we look back in retrospect

Äuidelines to identify:

1. Figure out your key competitor is. : Silver bullet test

1) Does the company that in past years mattered the most to us and our business seem less important
today?
) Does it look like another company is about to eclipse them?

When the answer to this question is not as clear as it used to be, it͛s time to sit up and pay special
attention.

. The Cassandras in the organization recognize strategic inflection points. usually in middle
management. Often they work in the sales organization. Know more about upcoming change
than the senior management because they spend so much time ͞outdoors͟ where the winds of
the real world below in their faces

Grove emphasizes it is important for senior management to break down the walls between those
who possesses knowledge power and those who possesses organization power
 Overcoming nflection
( Resolution of strategic dissonance comes through experimentation.

( Strategic plan Vs Strategic Action

(Balanced interaction between the middle managers & senior management

Organization should have  attributes:

1. Tolerates and encourages debates, devoted to exploring issues & solutions

. Top Mgmt - capable of making and accepting clear decisions, with the entire
organization supporting the decision.
Read the book for more
details Ú
m