3. Understanding Speed Flashcards
[Adaptability] Strategy
- to possess an enduring competitive advantage
- by establishing a clever market position (dominant scale or attractive niche market)
- by assembling the right capabilities for making or delivering an offering (doing what the company does well in)
[Adaptability] Challenges for Big Businesses and Old Strategies [SMU-PIT]
Hard to define the scope of the industry
- blurred competition lines, non-traditional companies are not competing in traditional industries
- e.g. Amazon: physical retail store, fresh produce business, book industry, etc.
Learning from Mavericks
Identify and Address Uncertainties
Explore multiple Perspectives (plans and backup plans)
Address risk with an initiative (scenario planning)
Shorten Planning Cycles (time pacing)
[Adaptability] Capabilities
First-order: be really good at what you do
- system and process efficiency
Second-order: for rapid adaptation
[Adaptability] Building Second-Order Capabilities
- Read and Act on Signals
- through knowledge
- maximise knowables for company differentiation
- data analytics (e.g. Tesco and enriched offerings; Google adsense)
- actionable intelligence: intelligence to boost strategic position (a pre-emptive strike and a defensive counter strategy) - Experimentation
- to deduce the situation
- is costly and time consuming, sometimes inaccurate too
- four types of experiments
- e.g. P&G: connect and develop model uses VR to find consumer preferences
- highly tolerant of failure
- growth mindset - Complex Multi-Company Systems
- system and ecosystem level consideration (suppliers and stakeholders)
- building good network relationships - Creating a Mobilisation and Motivation Environment
- sharing of knowledge and information flow
- diversity and autonomy in risk taking
- constructive conflict
- decentralise after centralising
- trusting and empowering your employees
(e. g. WholeFood store managers can decide where to source and what to sell for their individual stores)
[Time Pacing] What is it? [VPR]
Scheduling change at predictable time intervals in a rapidly shifting environment
- guided by strategic vision: to determine actionable steps
- proactive: anticipate and set the pace of change (set direction; prevents over-pacing; calibration of processes)
- rhythmic: schedule changes as a rule, not equivalent to speed (needs to suit your company)
[Time Pacing] Benefits and Goals (OOWWC)
- increasing order within a company: creates disciplined changes and aligned action; common goals
- prevent over-reaction to noise: not be too sensitive to environmental changes, some products just need time to mature and prove themselves
- focused, efficient and confident workforce
- be wary of theme weavering: for strategic coherence and prevent cannibalism
- coopetition: competition for resources and cooperation to meet goals (e.g. Samsung and 56 phones released in a year; Samsung supplies Apple with curved screens)
[Time Pacing] Benefit: Managing Transitions (MAPE)
M&A
- e.g. BancOne
Advertising Campaigns
- e.g. Apple’s 1984 SuperBowl Commercial
- e.g. Back to the Future: Nike self-lace shoes, Pepsi Perfect
Shifts in product development
- e.g. Gillette paces their product releases. They do not release a new product prototype into production unless a mock-up of the next product is available
- helps in reacting to competition, and also orchestrating and commanding a business
Entering or Leaving Markets
- not only speed, but also having a process for transitions
- to align effort and provides checks for progress
[Time Pacing] Benefit: Managing Rhythms
a cycle to create a momentum for change in time pacing
- align with important rhythms in the market (e.g. festivities, seasons)
- e.g. announcing new movies at ComicCon, new games at Electronic Entertainment Expo, Samsung launch products before Apple
[Time Pacing] Modularity
should all of the product’s best features be released at the same time?
- to extend the usability lifespan of an existing product (careful not to lead to update fatigue)
- e.g. Samsung Note2 and Note2 LTE released one quarter apart, only difference was the speed –> upset customers
- e.g. Apple releases iPhone, iPhone Pro and iPhone Max together
[Time Pacing] Event Pacing?
changing only when some events have happened in the environment
- often times reactionary to changes in technology
- reactionary and cue-taking
