Archives for October 2019
Daily Inspiration: “Your path of business model obstruction? Let me remind you how well that worked for record companies!”
“Your path of business model obstruction? Let me remind you how well that worked for record companies!” – Futurist Jim Carroll
It takes courage to disrupt a successful business model, but most likely, you have no other choice.
On the other hand, only an idiot tries to obstruct the inevitable!
And yet, I see that occurring all around me.
Automotive dealer groups trying to prevent the business model which has Tesla selling cars online. Taxi companies still trying to restrict car-ride services. Hotel chains losing a war against AirBnB and other startups. Optometrists trying to fight Warby Parker. The list goes on.
Obstruction is not a sustainable long term strategy – at best, it’s a short term tactic that is pretty much doomed to fail. (For many people, that’s the best thing they will read in this post!)
Music companies tried to battle against the change to their business model as MP3 technology emerged. I remember going on a national TV show in 1997 with a record company executive – she was adamant that all that needed to happen was that some laws needed to be passed, the perpetrators needed to be found, and the technology could simply be shut down.
Um, let me tell you how technology works, I said…. (I have the tapes. It’s fun to watch.)
Of course, the viral sensation that was Napster led to the eventual birth of Spotify, and my CD’s and LP’s sit around my house, the memory of a business model that now seems kind of bizarre. (I bought Led Zeppelin IV on vinyl, 8 track, CD and cassette. They got enough of my money!)
Today, I still see executives in some of the industries in which I speak in trying to wish away the disruptive change that surrounds them: “Let’s not talk about it.” “Let’s ignore it!” “Let’s talk about how we are going to change the consumers mind through an advertising campaign.”
Right.
When it comes to the future, you can choose to ignore it, fight it, or embrace it – and innovate around it.
I can tell you what history has taught us about the first 2 of those 3 options. It’s kind of ugly, but predictable.
Don’t obstruct – disrupt!
Video: Rapid Reinvention and Chameleon Revenue
Daily Inspiration: “In an era in which in much of your future revenue will come from products that don’t yet exist, your legacy will be your death sentence!”
“In an era in which in much of your future revenue will come from products that don’t yet exist, your legacy will be your death sentence!” – Futurist Jim Carroll
Can you reinvent yourself at the same blistering pace of Apple and other hi-tech companies?
If not, you’d better figure it out – your market and industry is becoming part of that same reality.
At one time, Apple was in a situation in which 60% of revenue came from products that didn’t exist 4 years earlier. Once an aberration, that is increasingly becoming the norm in most industries. If your’t reinvent at same blistering pace, you’re done.
Cars are becoming computers.
Home appliances are now connected computers that wash your clothes and cook your food.
Medical equipment is now some sort of weird, hyperconnected intelligent AI thing that does a better job at diagnoses than a physician.
A farm tractor is no longer just that – it is now a rolling GPS based real-time soil-weed-crop health analysis machine!
In all of these cases, Silicon Valley and the impact of technology has come to drive the speed of change – and quite simply, that’s faster. Companies need to pick up the innovation pace.
They also need to recognize that as their industries become tech-driven industries, the products they bring to market become irrelevant faster.
Who wants a car dashboard from the olden-days (i..e. from two years ago) when this years model has the latest, greatest car-navigation and accident avoidance technology?
Who in their right mind wants to invest in a microwave oven when they know that intelligent hyperconnected smart-packaging bar code technology just on the horizon will determine optimal cooking times?
Who wants to build a hospital using yesterday’s out of date medical equipment when there is some fascinating new device just on the horizon?
If you can’t reinvent, you don’t survive. Your customers won’t put up with it. Their mind is already far ahead of you, because increasingly, they know what comes next, and that’s what they want!
Clinging to your legacy like the drowning seize a life preserver is not strategy – it’s desperation!
Keynote: Boehringer Ingelheim, Toronto, Ontario – Innovation Opportunities in the Future of Healthcare
The Canadian arm of this global pharmaceutical company brought together a small team that is focused on forging new partnerships with government, hospital and doctors, based on leading edge medical and healthcare concepts. They brought me in for a talk that took a look at what happens with the virtualization of hospitals, self-aware patients, group medical consultations, device connectivity, accelerating medical science and more, to give them some motivation on tackling the vast challenges throughout the system!
Pre-Keynote Video: A Sneak Peak of My Topic strong>
Analysis: Why Is Your Brand Suddenly from the ‘Olden Days?’
“A brand today can go from hero to zero in a matter of months….”
10 years ago, I was on stage for global organizations advising them that the next decade would see them face tremendous challenges as the era of social media, product obsolescence and new competitors hit the essence of their branding soul.
I pretty much nailed that one perfectly.
With that, here’s a post I wrote back in 2006 – at the dawn of the launch of a new product by Sony, an organization well on its way to branding failure. Give it a read. It’s still pretty relevant today.
As the news media gears up for the release of the Sony Playstation 3, one wonders whether they are capturing an increasingly important aspect of the story: has Sony managed to keep any of the brand luster that it once had, or is already irretrievably lost?
That’s an important question in this world of instant obsolescence. I often tell the story on stage of how my sons — now 11 and 13 — perceive many of the things which were once a part of my life as being from the “olden days.” We’ve actually come up with a pretty long list; just the other day, when looking at a Web site, my youngest asked me with all innocence, “what’s a cassette player?”
Sony once had a really cool brand name, and the Walkman had deep, deep brand value. Yet Sony seemed to lose its innovative spirit, and started going wrong in a big way. It ended up destroying a good chunk of the brand value behind the Sony name — when I think of Sony now, I think of a company that is slow, behind the times, ponderous.
Which begs the question : are you operating with enough agility and rapidity in order to ensure that your own brand doesn’t become a “brand from the olden days?”
The rate at which the Sony brand lost its value is nothing short of stunning — and was due to a series of well known missteps (among others):
- they failed to keep up with the rapid growth and demand for flat panel TV’s and other hot new technologies: they failed with market agility.
- they decided that going to war with their customers (by slipping destructive software onto their music CD’s) was more important than developing great technology that caught the next wave of consumer electronics.
- they dropped the ball on the necessity for continuous operational excellence , as evidenced by a disastrous recall of laptop batteries.
Are you making similar mistakes that is costing you brand image? You certainly are, if:
- Your brand looks tired, because it is tired. Case in point — many companies in the automobile industry missed out on the revolution in the passenger compartment, because they weren’t watching what their customers were doing. They were busy releasing automobiles that were some five years behind the living rooms of their customers — and that certainly brought the brand sheen off of some of the biggest auto companies.
- Customers see a lack of innovation: Consumers today are immersed in a global cloud of new ideas. They’re witnessing constant, relentless, awe-inspiring forms of innovation all around them, as they deal with a flood of new consumer technologies, packaging based product innovation, and ongoing advancements in retail environments, both offline and online. They’ve come to expect that the brands they deal with are at the leading edge, in design, functionality, message and purpose.
- Lousy, ineffective customer service: Guess what – when it comes to interaction with your customers, they measure you up against the world’s best. If you don’t add up, you are doing some significant damage to your brand equity right there. Customer support is no longer good enough — fanatical support is better.
- You don’t know that you customers know more about your brand than you do: Your customers today are immersed in the global innovation idea feedback loop. They busy sharing ideas on what’s really cool, and they are even busier taking apart the folly of those who have been left behind. In doing so, they are rapidly reinventing products, services, brands and image. If you aren’t listening, you are guaranteeing that you’ll fall behind.
- A lack of purpose or urgency: I’ve studied many organizations who still don’t have the key information they need for market agility. They don’t have instant feedback mechanisms which tell them of rapid developments in specific markets. They don’t know how to regroup quickly “when bad things happen.” They still operate blind, as if it’s 1990: their sales force goes into a customer meeting, oblivious as to what that customer has been thinking about them. They approach every day as if it were the same as yesterday; meanwhile, their market and their customers have run away from them!
- A lack of market and competitive intelligence: It’s the information-age, get it? There’s no shortage of information to be had. Yet I see companies who seem shocked when a competitor drops a ‘bombshell’ announcement — only to realize that they were the only one who thought it was a bombshell. Everybody else knew what the competition was up to, because in this new hyper-connected world, everyone knows what everyone else is doing!
- A regular series of fumbling missteps: The saddest thing is that Sony has messed up in so many ways, that some customers now look at as if it has a “L” on its forehead. Today, small mistakes can be instantly compounded. Take the concept of compounded financial interest. Now realize that a small PR mistake, a lousy executive decision, or poor execution, can lead to the same type of instant, global brand devaluation — that can compound on itself at an extremely high interest rate!
A brand today can go from hero to zero in a matter of months. How do you avoid such a fate?
- Recognize that brand longevity is now a critical issue
- Ensure your sales, marketing, development and customer support team are relentlessly focused on the currency of the brand
- Make sure that continuous brand innovation is part of your corporate mantra
- When confronted with the new and challenging customer, learn from them rather than running away
- Be incessantly focused on the likely innovations that will come to impact your brand
- Learn to think five to six product lifecycles in advance — and plan to do them all within six months.
- Make forward oriented intelligence a critical aspect of what you do.
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