Situation Normal, Everything Must Change
Evolution Impacts Cycles Today Strategy
Diffusion, a common concept ...
Evolve ? ... doesn't explain evolution ...
However, there's a non Ubiquity time based process of evolution ... Utility Commodity Product Service Custom Built Genesis Certainty
... which we call commoditisation Ubiquity User Commoditisation Supply Certainty
... which helps explain the whole story.
Map evolution against ... Custom Commodity Genesis Product Evolution Evolution
... value chain. We can use Value Chain Value Chain this to explain how industry changes ... Evolution
... creating a cycle of commoditisation driving higher order systems.
Hence Cloud ... Product Utility
As things evolve, their Chaotic characteristics change ...
Chaotic Linear Six Sigma ... which is why one size fits all methods don't work.
Evolution Impacts Cycles Today ... this cycle also has Strategy standard impacts ...
Creative Destruction + Efficiency $$ + Value
Componentisation + Efficiency + Agility + Value
Jevons + More + Efficiency + Agility + Value
... and it's not just activities (what we do) that evolve but also practices (how we do things) ... ∆ Practices ∆ Activities
... through a similar process. Novel Emerging Good Best Genesis Custom Product Commodity
Often practices co-evolve with activities ... Best Product Utility Best
... creating inertia to change ... Best Product Utility + Transition Best
... or a least one of the forms of inertia ... Inertia
... which also occurs in vendors ... Inertia + Past Success
... leading to three economic eras ... Peace / Margin War / Disruption Build / Growth
Carlotta Perez ... which appear in every age ...
Peace / Margin Technology Diffusion Maturity Synergy War / Build / Growth Disruption Frenzy Eruption ... e.g. .... Time
Technology Diffusion Organisations ... each state of war is associated with new organisational forms ... Time
... those organisations being based on the new practices ... Best Product Utility Organisations Best
... hence we have a common cycle of change ... Inertia Disruption New Emerging Growth
... for every age ... Mechanical Components Inertia Disruption American System Emerging Growth
... ditto ... Means of mass communication Inertia Disruption Web 2.0 Emerging Growth
... ditto ... Cloud Inertia Disruption Next Emerging Growth
... ditto ... The next Age ?
2004
... ditto ... Manufacturing Inertia Disruption Next Next Emerging Growth
... also we see increases in unmodelled data ... Inertia Disruption Data New Emerging Growth
... which evolves ... Algorithms Unmodelled Modelled ∆ Practices ∆ Activities
So what is happening today? Today ...
... what we would expect ... Cloud Inertia Disruption Data Next Emerging Growth
... and also new forms of organisation ... Web 2.0 'Traditional' Next
... with different Traditional Next Gen characteristics ... Departmental Cell Structure Profit Disruptive Focus Cost reduction Weapon Open source Scale-up Distributed Scaling N+1 Design For Fail Resilience Disaster Rec. Chaos Engine Failure Analysts Ecosystem Learning Enterprise Commodity Infrastructure
Of importance ... Ecosystem ... Innovate Leverage Commoditise
... and use of open as a competitive weapon ... Open Technology (open source, open data, open hardware, open standards, open APIs, open process)
Open Technology 1. Drive adoption 2. Drive innovation (as in feature completeness) 3. Drive innovation (genesis higher order systems) 4. Drive efficiency 5. Undermine competitors barrier to entry 6. Enable formation of an ecosystem (ILC) 7 . Protect an existing value chain ... numerous strategies in the wild ...
Open Technology 9. Prevent competitors differentiating around a core revenue stream (Tower & Moat) 10. Retention and recruitment of talent 11. On ramp to another product or service (open core) 12. Overcome an obstacle (insertion strategy) 13. Encourage formation of a competitive market (interoperable play) 14. Avoid transition costs (standards play)
Open Source & the Next Age ... this will also matter in the next age...
... critical is understand Ubiquity evolution ... Utility Commodity Product Service Custom Built Genesis Certainty
Threat Value Chain Barrier ... understand the landscape ... Evolution
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