Risking the future of your company.
Two reasons companies fail - and how to avoid it
TedTalk - Knut Haanaes
EXPLORE AND EXPLOIT only 2% companies do it and are heavily rocking the market.
Mainly I choose this header for speaking you about the future. Future is in a short term predictaple and you can see few steps ahead. By exploiting new things you choose to gather new points in a market and will do good bucks out of it. In the other hand you cannot continue to do ONLY exploiting neither the exploration. You are going to need more of an answers and explore the future farther.
Winning the next cycle of innovation
It’s about several years back when Nokia the big Finnish telephone manufacturer felt that they are so big that it cannot just drop down. Keeping the innovation ahead they found new technologies to build on and raise the revenue in the market in whole world. 1990’s they pulled Finland from the one of the biggest economical crises. When the millenium changed they tend to do the same thing and keep doing the basics. They stopped doing innovations after few set backs while f.ex bringing first tablet computers on the market. Leaders in Nokia didn’t understand or react the new trends coming from the darkest corners. Speaking the new innovation in developing applications soon to become mobile computers. Mobile computers was then the biggest next thing. If we put our sight on the different other companies like Apple or Google. They started doing business from different angle. They started building of course the mobilephones with touchscreens but main thing what totally push them up was the applications. They opened market for unknown developers and let them earn money with that. They build a platform to make sales.
Nokia fighted back with the basic things. They saw that they are in good spot globally and saw there is only minor revenue loses in western market. Seeing the consept they still didn’t believe it. By saying this we can see similarities in Knut’s speak in TED. It’s easily noteciable that Nokia stopped exploration and kept exploiting. They didn’t take risks to fill with competition and dropped of from it fast. They still burned so much money marketing and feeling that there is still room for the new operating system. And didn’t ket the advantage of new technologies. Just by now there is still phones that Nokia does and they finally understood the importance of the operating system and appstore ect. Nokia phones run Android now a days.
There is still good stories about the companies worldwide that has fallen even heavier than Nokia. You should look up f.ex Xerox and FujiFilm. Those are one of the classical examples of the not exploring new and fighting back by creating no innovations.