After reaching an “innovation threshold” this is the approach that explains the success of 10X or high performing companies rather than big leap innovations and predictive genius.
“Fire Bullets” Then “CannonBalls” implying gradually scaling up innovations starting from a small scale(bullets).When these innovations hit their targets then only plan on launching the cannonballs.
Adopted from Jim Collins’s book titled “Great By Choice”
Watch out this space for more on this approach.
When we marry operating excellence with innovation it multiplies the value of creativity and it turn amplifies growth of a 10x high performing organization
Thus the greatest challenge is to blend creative intensity with relentless discipline
Adopted from Jim Collins’s book titled “Great by Choice”
Early 1973 Intel adopted the motto “Intel delivers” not “Intel innovates”
This bears ample testimony to the fact that in any industry beyond an “innovation threshold” what matters is fanatical discipline to keep playing the infinite game
Adopted from Jim Collins’s book titled “Great by Choice”
Every business environment be it biotechnology , medical devices , airlines , insurance etc. has an “innovation threshold”
For airlines it is low & biotechnology driven by patents is high
To compete in an industry all big players have to operate beyond this threshold.The top performing ones are those who innovate judiciously without getting burnt out
Adopted from Jim Collins’s book “Great by choice”
South West Airlines(SWA) is a modern day classic example of an iconic company which did not start with a unique business model of its own.
Pacific Southwest Airlines(PSA) started early as a low cost carrier.SWA followed the low cost model & even the entertainment aspect from PSA.The employees of SWA were encouraged to go on visits to PSA to study and understand their work culture and experience handed out to the customers.
The difference is that SWA exhibited the right kind of discipline to take the organization to the next level whereas PSA lost its way.
This comparison goes a long way to prove that to be an iconic brand it is not necessary to be a “first mover”.
Adopted from Jim Collins’s book titled “Great By Choice”
The concept of excel was developed by VisiCorp for the Apple II computer.The program was named as VisCalc.
Source – Wikipedia.com
The link below adopted from Wikipedia talks about this first excel spreadsheet
https://en.wikipedia.org/wiki/VisiCalc
Thus contrary to popular belief Microsoft did not invent excel , it took it to the next level.
Adopted from Jim Collins’s book titled “Great By Choice”
Contrary to popular belief, a lot of cases exist where the “first mover” have not been able to sustain for a long in a market and the followers have taken over.
Source – http://www.revelx.co
The following link talks about the disadvantages of a “First Mover”
https://www.revelx.co/blog/first-mover-disadvantage/
A few notable examples in this regard:
Similar points are discussed in Jim Collins’s book titled “Great By Choice”
John Brown at the iconic 10x performing Stryker Inc. believed in this philosophy.
By not being too aggressive trying to over innovate , sometimes turns out to be the best strategy to survive in the longer run.
USSC was Stryker’s biggest and more fancied competitor whose reputation of out-innovating competition eventually led to burn out and eventual downfall in the longer run.
Adopted from Jim Collins’s book titled “Great By Choice”
See below some notable examples and you would start seeing the pattern
1) Gillette did not pioneer the safety razor.Star did
2) Polaroid did not pioneer the instant camera.Dubroni did
3) Microsoft did not pioneer PC spreadsheet.VisiCorp did
4) Amazon did not pioneer online book selling
Research shows that very few pioneers have gone on and dominated the market.
Adopted from Jim Collins’s book titled “Great By Choice”
Jim Collins in his book titled “Great By Choice” shares startling insights which goes to prove just this.
The iconic brand South West Airlines copied the entertainment aspect in its brand from its once famous competitor named Pacific Southwest Airlines.
It was sheer discipline that made Southwest survive the test of time and Pacific Southwest Airlines extinct.
The same holds good with Amgen wherein its competitor Genetech innovated and created patent after patent but still failed to survive in the long run.
Thus 10X or high performing companies were not necessarily most innovative