Download - Situation Normal Everything Must Change
Situation Normal, Everything Must
Change
EvolutionImpactsCyclesToday
Strategy
Diffusion, a common concept ...
Evolve ?
... doesn't explain evolution ...
Certainty
Ubi
quity
Custom Built
Commodity
Service
Product
Utility
Genesis
However, there's a non time based process of
evolution ...
Certainty
Ubi
quity
User
Supply
Commoditisation
... which we call commoditisation
... which helps explain the whole
story.
Commodity
Genesis
EvolutionEvolution
Product
Custom
Map evolution against ...
Evolution
Valu
e C
hain
Valu
e C
hain
... value chain. We can use this to explain how industry changes ...
... creating a cycle of commoditisation driving higher order systems.
UtilityProduct
Hence Cloud ...
Chaotic As things evolve, their characteristics change ...
Chaotic Linear
Six Sigma
... which is why one size fits all methods don't work.
EvolutionImpactsCyclesToday
Strategy... this cycle also has standard impacts ...
+ Value
$$
+ Efficiency
Creative Destruction
+ Value
+ Agility
+ Efficiency
Componentisation
+ More
+ Value
+ Efficiency
+ Agility
Jevons
∆ Activities
∆ Practices
... and it's not just activities (what we do) that evolve but also practices (how we do
things) ...
CommodityGenesis ProductCustom
BestNovel GoodEmerging
... through a similar process.
Best
Product
Best
Utility
Often practices co-evolve with activities ...
Best
Product
Best
Utility
+ Transition
... creating inertia to change ...
Inertia
... or a least one of the forms of inertia ...
+ Past Success
Inertia
... which also occurs in vendors ...
War / Disruption
Build / Growth
Peace / Margin
... leading to three economic eras ...
Carlotta Perez
... which appear in every age ...
Tech
nolo
gy D
iffus
ion
Time
War / Disruption
Synergy
MaturityPeace / Margin
Eruption
FrenzyBuild / Growth
... e.g. ....
Tech
nolo
gy D
iffus
ion
Time
Organisations
... each state of war is associated with new
organisational forms ...
Best
Product
Best
Utility
Organisations
... those organisations being based on the new practices ...
Disruption
Growth
Emerging
Inertia
New
... hence we have a common cycle of change ...
Mechanical Components
American System
Inertia
Disruption
Growth
Emerging
... for every age ...
Means of mass communication
Web 2.0
Inertia
Disruption
Growth
Emerging
... ditto ...
Inertia
Next
Cloud
Disruption
Growth
Emerging
... ditto ...
The next Age ?
... ditto ...
2004
Inertia
Next Next
Manufacturing
Disruption
Growth
Emerging
... ditto ...
Disruption
Growth
Emerging
Inertia
New
Data
... also we see increases in unmodelled data ...
∆ Activities
∆ Practices
Unmodelled Modelled
Algorithms
... which evolves ...
Today ...
So what is happening today?
Inertia
Next
Cloud
Disruption
Growth
Emerging
Data
... what we would expect ...
Next
'Traditional'
Web 2.0
... and also new forms of organisation ...
Traditional Next Gen
Open source WeaponCost reduction
Scaling DistributedScale-up
Resilience Design For FailN+1
Failure Chaos EngineDisaster Rec.
Infrastructure
Learning
CommodityEnterprise
EcosystemAnalysts
Focus DisruptiveProfit
Departmental CellStructure
... with different characteristics ...
Commoditise
Leverage
Innovate
Of importance ... Ecosystem ...
Open Technology(open source, open data, open
hardware, open standards, open APIs, open process)
... and use of open as a competitive weapon ...
Open Technology1. Drive adoption
2. Drive innovation (as in feature completeness)
3. Drive innovation (genesis higher order systems)
4. Drive efficiency
5. Undermine competitors barrier to entry
6. Enable formation of an ecosystem (ILC)
7. Protect an existing value chain ... numerous strategies in the
wild ...
Open Technology9. Prevent competitors differentiating around a core revenue stream (Tower & Moat)
10. Retention and recruitment of talent
11. On ramp to another product or service (open core)
12. Overcome an obstacle (insertion strategy)
13. Encourage formation of a competitive market (interoperable play)
14. Avoid transition costs (standards play)
Open Source & the Next Age
... this will also matter in the next age...
Certainty
Ubi
quity
Custom Built
Commodity
Service
Product
Utility
Genesis
... critical is understand evolution ...
Evolution
Valu
e C
hain
Barrier
Threat
... understand the landscape ...
Competing in an Open World
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