ZONE TO WIN ORGANIZING TO COMPETE IN AN AGE OF DISRUPTION G o t o c o n A c c e l e r a t e L o n d o n , N o v 1 7 , 2 0 1 6
AGENDA The Challenge • Catching the Next Wave • A Crisis of Prioritization • Zone Management • Four Zones • Resetting Priorities • Zone to Win • Attacking • Defending • • Sustaining
DISRUPTIVE INNOVATIONS WHEN THE MARGINAL COST APPROACHES ZERO Internet Optimizing any physical system of Things Machine Optimizing any digital system Learning Big Analyzing decision-relevant data at any scale Data Smart Communicating with anyone anywhere Phones Cloud Deploying software globally for any purpose Computing When the marginal cost approaches zero, it’s time to catch the next wave
TECH LEADERS WHO MISSED THEIR NEXT WAVE Burroughs – Sperry Univac – Honeywell – Control Data Why is this so hard? MSA – McCormick & Dodge – Cullinet – Cincom – ADR DEC – Data General – Wang – Prime – Tandem Daisy – Calma – Valid – Apollo – Silicon Graphics – Sun Atari – Osborne – Commodore – Casio – Palm – Sega WordPerfect – Lotus – Ashton Tate – Borland Informix – Ingres – Sybase – BEA– Siebel – PeopleSoft Nortel – Lucent – 3Com – Banyan – Novell Quest – America West – Nynex – Bell South Netscape – MySpace – Inktomi – Ask Jeeves – Yahoo! Kodak – Blackberry – Motorola – Nokia – Sony
THREE INVESTMENT HORIZONS Do well here too WHERE NEXT-GEN INITIATIVES GETS STUCK Break-Out Categories On-board next generation for Horizon 3 future growth ROI in 36 to 72 mos Current Categories Meet Horizon 2 Future Category Performance Options ROI in 12 to 36 mos Commitments Develop options for future growth Get stuck here! Horizon 1 ROI in 0 to 12 mos Do well here
WHO’S UP FOR THIS? THE HORIZON 2 CHALLENGE WHY DISRUPTIVE INNOVATIONS ARE NOT WELCOME INVESTORS? S To catch an curve SALESPEOPLE? SALES MGMT? J You must go through a curve CUSTOMERS? PARTNERS?
THE HORIZON 2 CHALLENGE IT’S NOT A FUNNEL. IT’S AN HOURGLASS! Sustaining Disruptive Bringing a Innovations Innovations disruptive innovation to scale is not a natural act Horizon 3 Horizon 2 It puts your entire Horizon 1 organization in conflict with itself The Horizon 2 choke point is not in R&D It’s the Go-to-Market function that gates the process
SORTING OUT THE CONFLICTS MANAGING IN AN AGE OF DISRUPTION Disruptive Sustaining Innovations Innovations Transformation Zone Performance Zone Delivers Horizon 2 Horizon 1 Material Revenue Make the number! Change course & speed! Commit Culture Command Culture Incubation Zone Productivity Zone Consumes Horizon 3 Horizon 1 Investment Invent the future! Do the right thing! Creativity Culture Collaboration Culture Each zone has its own priorities and its own culture
ALIGNING PRIORITIES MANAGING BETWEEN WAVES Disruptive Sustaining Innovations Innovations Transformation Performance Revenue Zone Zone Performance 1 Incubation Productivity Enabling Zone Zone Investments 3 2 Harvest your rewards, build up your reserves
ALIGNING PRIORITIES CATCHING THE NEXT WAVE: ZONE OFFENSE Disruptive Sustaining Innovations Innovations Transformation Performance Revenue Zone Zone Performance 1 2 Incubation Productivity Enabling Zone Zone Investments 3 Enlist everyone in making the big change
ALIGNING PRIORITIES WHEN THE NEXT WAVE CATCHES YOU: ZONE DEFENSE Disruptive Sustaining Innovations Innovations Transformation Performance Revenue Zone Zone Performance 1 3 Incubation Productivity Enabling Zone Zone Investments 2 Enlist everyone in modernizing the current business
TRANSFORMATION PLAYBOOK • Transformation trumps all other commitments Failure is not an option—everyone’s badge is on the table Making the H1 number is still important—but not the top priority • Total alignment is required CEO in command: secures access to all needed resources New narrative for investors—board of directors in full support Executive compensation universally tied to this one outcome • Key milestones are tipping points Zone Offense: Material Size (>10% of the Performance Zone) Zone Defense: Accelerated Growth (leveraging the new S curve)
THE TRANSFORMATION ZONE HOW WELL IS YOUR ENTERPRISE DOING? Faults Fixes • Never commit to two J-curves at the • Undertaking more than one same time transformation at the same time • Once you commit to a J-curve, do • Withdrawing support before the not back down--regardless tipping point has been reached • Incent everyone on the singular • Letting anyone “opt out” of taking success of the J-curve and replace accountability for the any executive who won’t align transformation’s success Transformations are defining moments They simply must succeed
ALTERNATIVE PATHS TO EMBRACING DISRUPTION: YOU DON’T HAVE TO TRANSFORM Transform your portfolio Bus Transformation Zone of businesses Model Modernize your Operating Performance Zone systems of engagement Model Optimize your existing Infrastructure Productivity Zone Programs & systems Model Products � Solutions � Projects
FINAL TAKEAWAY THREE ROUTES FORWARD Disruptive Sustaining Innovations Innovations Performance Transformation Revenue Zone Zone Performance Enabling Investments Incubation Productivity Zone Zone Transformations are the exception, not the rule
DISCUSSION QUESTION (B) Internet Transformation Performance of Things Zone Zone Machine Learning (A) Big Data Smart Phones Incubation Productivity Zone Zone Cloud Computing For your industry and your enterprise, (A) Which wave of innovation is most disruptive at present? and (B) Which zone offers you the best opportunities to engage with it?
THANK YOU gmoore@geoffreyamoore.com twitter.com/geoffreyamoore http://linkd.in/YnBwig
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