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Tuesday, January 15, 2013

Surviving Disruption--Post #9--Getting Full Value

Generating Full Value: “The Capabilities Exchange.” Both Transformations A and B need to be nourished and grown and therefore require support. To ensure that the upstart (Transformation B) gets what it needs, companies must consider the following: Leadership, Shared Resources, Exchange Teams, Boundaries, and Scaling.
i.    Leadership—you need the Chairman, CEO, or a very senior-level person to head this new initiative, or it may not get the vital support it needs during its infancy.
ii.    Shared Resources—determine what Transformation B can borrow from the mother ship to gain competitive advantage—brand, production, etc.
iii.    Exchange Teams—joint teams from Transitions A and B need to work out resources allocation.
iv.    Boundaries—keep both teams A and B from interfering with each other. Both should act as if their company’s life depended on them alone—because it does!
v.    Scale—To get to a new and potentially larger market in the future, scale comes from the more disruptive upstart—Transformation B. Yet this is hard to sell to conservative investors. CEOs have to sell this concept hard. Examples: Xerox moved from a product to a services company and Barnes and Noble is moving from paper to pixels with its Nook.

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