On the high seas, 64% of ship sinkings are due to a single phenomenon. They’re not caused by mechanical defects, nor crew error, but by “rogue waves.” These monsters, which can tower over 100 feet tall, form under certain nautical conditions and when large waves combine to magnify their strength. They can swamp even large container vessels, although prepared captains know when the seas are ripe for the danger.
Video streaming is just one example of a digital economy where competition is intensifying. Many so-called legacy companies are caught up in a battle with digital competitors, and so far, the born-digital companies have been eating their lunch. Walmart (and every other physical retail store, from Macy’s to Best Buy) is in a constant duel with Amazon, and banks and credit card companies are squaring off against PayPal and Apple Pay.
Growing into adjacent markets is a powerful approach for tapping new revenues, rejuvenating businesses, and creating defenses against competitive upstarts. From Netflix’s entry into streaming and then content production, to Fujifilm’s transformation from Kodak rival into a $20 billion medical imaging powerhouse, to Ingersoll-Rand’s growth from air compressor maker to power tool manufacturer, the playbook for attacking adjacent markets has powered business successes in both high-growth and mature industries. However, it is also fraught with pitfalls. How...
Digital business transformation is akin to permanent disruption, a self-imposed regimen that recognizes transformation not as a one-and-done endeavor but as an ongoing commitment to adapt in line with changing customer needs and shifting industry landscapes.
We are trained to be solution-finders. In school, we are given questions and graded on the quality of our solutions. As we develop in our careers, management examines the solutions that we propose, not the questions that we have asked. For annual reviews, “performance” is usually defined as creating and implementing solutions rather than finding the best problems to tackle. We become wonderfully efficient at solving problems, even if they are the wrong ones to solve. Few kudos come from...
