Why Billion-Dollar, 100-Year-Old Companies DIE …
This article was first published on 2 January 2013.
This article largely speaks for itself. In my experience, the single biggest challenge for large organisations confronted with a disruptive technology or disruptive change is getting past their deeply ingrained mental models of what customers do and don’t value, what is and isn’t possible from a technological perspective, and how the components of their business model should or shouldn’t be assembled.
The story goes that Kodak spent time contemplating the potential impacts of digital photography in the mid-80′s only to have management develop a long list of reasons why consumers would never go for it and why they need not be concerned. They were captive to the tendency for people to reject or explain away information that doesn’t fit with their prevailing mental models.
Sound familiar? It’s much more common than most of us would like to admit and experience and education don’t make you any less subject to it – in fact they may make it worse.
This is a short article but there’s lots in here to keep strategists awake at night.