High performance: Managing technology change

Formulas can never predictably lead to success because, in the business world, company performance is relative, not absolute. High performance is a moving target, not a stationary one!! Even if all companies in an industry follow a formula, they will not all become high performers. Performance is about being different from competitors – which also entail risks.

The principles of disruptive technology

• Companies are dependent on customers and investors for resources: They tend to allocate resources to proejcts demanded by present customers and that meet expectations of present investors.
• Small markets don’t solve the growth needs of large companies: Large companies look to large new markets, and will tend to overlook small ones.
• Markets that don’t exist cannot be analyzed: Relying on conventional techniques of "market analysis" won't work if there is no market yet!
• An organization’s capabilities define its disabilities
• Technology supply may not equal market demand

So disruptive change is a common reason why leading companies do not maintain their postion. So what can firms do?

• Recognizing the threat is a first step
• Active testing, scanning, monitoring
• Active investment in alternatives

-- Learning from Phil and Bill at IMD