Professor Rita Mcgrath at business of software 2013 end of competitive advantage

Rita Gunther [email protected] Follow me @rgmcgrath

CONTACT RITA

mailto:[email protected]


http://www.ritamcgrath.com/


A Tale of Two Companies, two oil billionaires, a Japanese innovator and a whole lot of denial

3Copyright 2013 by Rita Gunther McGrath

New forms of competition that we never considered!

VS

4

The new playbook for strategy


i Continuous Reconfigurationi Healthy Disengagementi Deft Resource Allocationi Innovation Proficiencyi Discovery Driven Mindseti Entrepreneurial Career Management

What does it all mean for individual careers & talent?

From To…

Organizational systems Individual skills

A stable career path A series of ‘gigs’

Hierarchies and teams Individual superstars

Infrequent job hunting Permanent career campaigns

Careers managed by the organization

Careers managed by the individual


A recipe for disruption

Implications from the book for would-be disruptors


Find an attractive target


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=nQ5oel1fxdVs_M&tbnid=VtuqaQfII8nZsM:&ved=0CAUQjRw&url=http://www.avl-denver.com/&ei=SJusUayKKc6z0QWik4GIDg&bvm=bv.47244034,d.d2k&psig=AFQjCNEQ4c_aFIzk6gSS53BPBRufzzD6KA&ust=1370352818898839

“I don’t want any surprises and don’t bring me bad news”


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=c5kXeFghLmkTqM&tbnid=ST8jtoRvFT362M:&ved=0CAUQjRw&url=http://www.chrissoutham.com/free-downloads/&ei=ZpqsUeijL62g0wWI94DYDg&bvm=bv.47244034,d.d2k&psig=AFQjCNGo79EMSSLpU60QcTHytz1aQOhPvA&ust=1370352604625889

What does their customer really need?

i Same need that the incumbent provides, but with a twist?

i Making what the incumbent provides unnecessary?i Doing the same thing, but at a fraction of the price?i Customer need that is not being met, is being met

badly or expensively, or is being met in such a way that infuriates customers?

i Might they reward you for making their experience better?


Payment customers


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=8_I9auVfThJk1M&tbnid=SfRybK3GITa2aM:&ved=0CAUQjRw&url=http://thevillager.com/villager_33/momandpop.html&ei=b5ysUdbyK7CT0QWc_4HIDg&bvm=bv.47244034,d.d2k&psig=AFQjCNHcg6AoRVNGIqCXdEiIxlKqHNMYDQ&ust=1370353084127092

US Banks raked in $45.3 Billion in fees from merchants in 2008 & its gone up since then


Next, you’ll need a business model


http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=Vz8rExt63MK6lM&tbnid=Le2ZoWu6QEqevM:&ved=0CAgQjRwwAA&url=http://www.playxfight.com/2011/01/25/my-attempt-at-putting-zyngas-business-model-on-a-canvas/&ei=vp6sUdPRLsvWPILXgMgD&psig=AFQjCNEN5vUYMNyYDENUppSIE4Z7fXNmiQ&ust=1370353726844676

Here’s the disruptor


The transient advantage economy & entrepreneurship


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=bOQ7Fl9ZcNl5cM&tbnid=8aO82gbWJixsgM:&ved=0CAUQjRw&url=http://www.streamcompanies.com/blog/advertising-trends/are-you-part-of-the-wait-and-see/attachment/opportunity&ei=tp-sUbrxCKeP0AW1r4GwDg&bvm=bv.47244034,d.d2k&psig=AFQjCNGNM-TQKKpQTaWv3t3VPCJtAMbCCg&ust=1370353964621087

Time & Interest permitting

Implications for leaders in large organizations


17

From Stability to Continuous Reconfiguration

Copyright 2013 by Rita Gunther McGrath

From defending past advantages to healthy disengagement


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=hbUW-Z-mRJlJcM&tbnid=FdCnJEZ7GG_t4M:&ved=0CAUQjRw&url=http://caveatemptorblog.com/stop-phone-book-spam/&ei=JbFxUdvJI8TZOaXXgagL&bvm=bv.45373924,d.bGE&psig=AFQjCNGUiUFSbh2e_JwR1TMruY7bBsx_uQ&ust=1366491781947801

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Yej0akGQuh9vDM&tbnid=u_oCn6Bs7mv2YM:&ved=0CAUQjRw&url=http://seekingalpha.com/article/29308-how-verizon-s-fios-will-change-the-face-of-the-telecom-industry&ei=m7FxUazhG8jQOceagNgH&bvm=bv.45373924,d.bGE&psig=AFQjCNGWxwXZ6U4TuXM61g5qJGXjb3sEEQ&ust=1366491907745964

From resources held hostage to deft reallocation


• Textiles• Chemicals

1940s-1960's

• Advanced Materials

• Flameproof Products

1980s-1990s• Specialty

Materials• High-IP specialty

chemicals

2000s on

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FSDr6xSfEU36GM&tbnid=HKJD1qJLZJmYpM:&ved=0CAUQjRw&url=http://www.milliken.com/&ei=P7NxUY-6MIbBON-2gegH&bvm=bv.45373924,d.bGE&psig=AFQjCNH-qpy1DwkLQkyGLNQiwLU7-FzgjA&ust=1366492342924538

From episodic innovation to a sustained capability


From defending advantages to seizing opportunities


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=UqMY5Nd2CGaUVM&tbnid=bLg0ULHvKtDC1M:&ved=0CAUQjRw&url=http://www.facebook.com/BerlitzCorporation&ei=EDWJUbahKa-24APUn4HABQ&bvm=bv.45960087,d.dmg&psig=AFQjCNESC0RdcN_-1nEr9FWNTNKY7eKocg&ust=1368032859539156

Rita Gunther [email protected] Follow me @rgmcgrath

CONTACT RITA





Professor Rita Mcgrath at business of software 2013 end of competitive advantage

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