Fragility, Anti-Fragility and Innovation

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Fragility, Anti-Fragility and Innovation. Bill Wade wade-partners.com. We’ve Been Discovered !. Complete Surprise : The Black Swan. What is the opposite of “Fragile”?. What is the opposite of “Fragile”?. - PowerPoint PPT Presentation

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  • Fragility, Anti-Fragility and InnovationBill Wadewade-partners.com

  • Weve Been Discovered !

  • Complete Surprise: The Black Swan

  • What is the opposite of Fragile?

  • What is the opposite of Fragile?

  • antifragile: something that benefits from stress, harm, chaos, events, disorder, unforeseen consequences, uncertainty, time

  • Astronaut Atrophy

  • Tourist Trophy HuntAir Travel

  • Mithridates VI

  • Human systems are antifragile.Humans are antifragile.

  • Removing stress doesnt make us stronger.

  • Removing skin from the game.

  • Making everything bigger.

  • Stifling freedom of everything.

  • Risk Forecasting

  • Trains Will Haul Bulk Power Plant Fuel

  • Trains Will Haul Bulk Power Plant Fuel

    OOOPS !

  • OEM Component IntegrationOEM Vocational StandardizationDesign for Recycle- abilitySupplier System PartnershipDeath of Diagnose and Repair Severe Technician Shortage

    Major Structural Trends (Threats?) In the Ag Equipment, Parts and Service Markets

  • Anti-Fragile Strategies John Deere to Titan to Ralphs Farm SupplySize alone is not a strategy nor is a footprintFee follows function discounts become discriminateInformation is the ultimate pop code AVIN tyranny splintersWar declared by European (and Domestic) OEMsTungu explodesNet conquers gross and CASH conquers all!

  • InnovationAll that distinguishes leaders from followers S. Jobs

    Offense or DefenseWhat does this really mean to you?

  • Is Your Model Sustainable Machines, Markets, DistributionFacing the Great ModerationDefine the New NormalIndefinite WarrantyPermanent World Maps ?Guessing the FutureEconomic CyclesMarket has called 9 of the last 5 downturns

  • Innovation

    The only net creator of new wealth.

  • Innovation is all that foiled Malthus.

    Global warming next ?

  • InnovationThe only net creator of new wealth.Something newly tried. New combinations.Creating a portfolio of options to achieve substantial, profitable and sustainable growth.Other activity is caretaking, improvement at the margin or rearranging the deck chairs.

  • Fortification vs ExplorationTension between defending existing dominance and creating new growth pathsChance favors the prepared mind or company

  • Innovation How to?

    Be absolutely clear about the mission to everyone.Create just enough structure.Match people and horizons.

  • Innovation How to?

    Think businesses beyond product or technology.Innovate on behalf of your customers not your existing position.Diverge early converge late.

  • Things Ive NoticedIterate and communicateDont try to predict buy optionsRunway. electric cars vs. newspapers

  • Business Innovation RadarCreation of radical new value for customers In the beginning, all you have is data and intuitionAlmost never just product

  • Create Insight, Avoid ReflectionIndustry mirrors ?Best Practices Kill!Which industry orthodoxy can be challenged?We only see things for which we are looking.Mission Focus: Target DefinitionMission Clarity: Organization Understanding

  • Periphery Is Your Preferred FrontierIt is where to look first, but not exclusivelyAvoid the Success TrapChaos vs. StructureThe better we are at this, the tougher it is to try thatDefine Factors of Merit Speak multiple languages in multiple worlds.

  • Perspective is everything10 Ways to Slice It.

  • Offering-Creating new product or SERVICESSignificant AugmentationToyota HybridsApple IpodSony 4 generations and 150 variations of WalkmanMerrill Lynch Cash Management Account

  • Platform- Exploiting commonality

    Common components as building blocksAirbus common cockpitsGM OnStarDisney animationMicrosoft Suites

  • Solution- Solve complete problems

    Customized combinationsUPS complete 3PLDuPont selling painted bodies to FordIBM bundling of hardware, service and financing

  • Customer- Serving unmet needsIdentify unarticulated latent needs and resegment marketsChrysler minivanHome Depot almost proFedEx segmenting by time instead of volume

  • Customer Redesign interfaceBroaden touch points and life cycle interfaceSaturn no haggle pricingCabelas store as entertainmentAmazon returns handlingEverything about American Girl

  • Value Capture- Changing how you get paid

    Changing yield management or position in the value chainGoogle paid search GE time in airProgressive utility pricing

  • Organization and ProcessDesign for internal improvement and process streamliningBoeing 7873M Slack DayGoogle 20% programCisco partner centered network

  • Supply Chain FlowPrimarily increased communication within channelsWalmart VMIDell user-direct one-off manufacturing designHome Depot/GE appliance floor plan

  • Presence- How customers access youAugmenting channel mix, including self serviceEnterprise in repair shopsNetflixMcDonald's and BOADiebold remote teller

  • Networks-Exploit network intelligenceLeverage network connectivityOtis elevatorElectrolux auto replenished refrig Peapod edible billboards

    Microsoft Xbox Live channel

  • Brand LeverageCo-Branding into new product classesVirgin Mobile, Air, etcCat BootsIntel InsideYahoo as a lifestyle brand(not Champion filters!)

  • Drivers of Service / Dealer AffinityAccelerating Regulation (i.e.. OSHA) Extended Trade Cycles (new normal)Vehicle EconomyRefurb Economics Warranty Control Proprietary InformationLabor Shortage

  • Fuels It is all about the juice!Ethanol (17) Westport EngineBiodiesel (19) Electrics / Hybrids Hydrogen (21) Green Issues CNG (23) LNG (23) Synthetic Diesel (26) Methanol (27) DME (29)

  • Innovation Boosters: Adaption and Aliens

    2014Labor Shortage and the Agent EconomyOutsourcing and Aliens

    Ferguson/Wolseley, Grainger, HD Supply, MRC Global Corp. (formerly McJunkin-RedMan), Airgas, Motion Industries, Fastenal Company, McMaster Carr, Applied Industrial Technologies, MSC Industrial Direct, Wurth (North America), Kaman Industrial Technologies, BDI, Barnes Distribution Industrial Distribution Group, SunSource, Lawson Products, BlackHawk Industrial Distribution

  • B-to-B from the B-to-CLowes has launched their Lowes ProServicesAce Hardware has The Supply PlaceStaples has a strong B-to-B component that now includes medical supplies.Home Depot On Set

  • Distribution Trend - Service Overtakes Box Pushers

    Services Emergency Services Energy Services Grainger TripleGuard RepairInventory Management Online Purchasing Solutions Product Services Products Beyond the Catalog Safety Services

  • Technician Training

    Who do you expect to provide this and who should bear the cost?Delivery Lets discuss the different possibilities.Technician shortage How concerned are you? What is your strategy for recruiting?

  • Newest Service: 3D Parts Printing

    TypeTechnologiesMaterialsExtrusionFused deposition modeling (FDM)Thermoplastics (e.g. ABS), HDPE, edible materials, Rubber RTV silicone, Porcelain, Metal clay (including Precious Metal)WireElectron Beam Freeform Fabrication (EBF3)Almost any metal alloyGranularDirect metal laser sintering (DMLS)Almost any metal alloyElectron-beam melting (EBM)Titanium alloysSelective laser melting (SLM)Titanium alloys, Cobalt Chrome alloys, Stainless Steel, AluminumSelective heat sintering (SHS) [18]Thermoplastic powderSelective laser sintering (SLS)metal powders, ceramic powdersPowder bed and inkjet headPlaster-based 3D printing (PP)PlasterLaminatedLaminated object manufacturing (LOM)Paper, metal foil, plastic filmLight polymerizedStereolithography (SLA)photopolymerDi