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jerryking : andy_grove   18

Opinion | Tech Loses a Prophet. Just When It Needs One.
Jan. 29, 2020 | The New York Times | By Kara Swisher, Ms. Swisher covers technology and is a contributing opinion writer.

* “How Will You Measure Your Life?” by Clay Christensen.
* The Intel founder and chief executive Andy Grove was a fan. So was the Apple legend Steve Jobs. Both men were doubtlessly attracted to the idea that start-ups made up of outsiders could find ways to create new markets and new value — and disrupt and overwhelm established companies.
* Professor Christensen’s formula was elegant: “First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. Second, disruptive technologies typically are first commercialized in emerging or insignificant markets. And third, leading firms’ most profitable customers generally don’t want, and indeed initially can’t use, products based on disruptive technologies.”
* though no fault of Professor Christensen’s, disruptive innovation took a turn for the worse in tech. Silicon Valley failed to marry disruption with a concept of corporate responsibility, and growth at all costs became its motto. The more measured approach that Professor Christensen taught was ignored.
* “It’s easier to hold your principles 100 percent of the time than it is to hold them 98 percent of the time.”
* “In fact, how you allocate your own resources can make your life turn out to be exactly as you hope or very different from what you intend.”
* “Decide what you stand for. And then stand for it all the time.”
advice  Andy_Grove  books  Clayton_Christensen  disruption  ideas  Kara_Swisher  principles  prophets  resource_allocation  self-help  Silicon_Valley  Steve_Jobs  technology  tributes 
19 days ago by jerryking
Business leaders are blinded by industry boundaries
April 22, 2019 | Financial Times | Rita McGrath.

Why is it so hard for executives to anticipate the major shifts that can determine the destiny of their organisations? Andy Grove called these moments “strategic inflection points”. For some, he wrote, “That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end.”

Industry leaders would do well to focus on productive opportunities, even when they lie outside a fairly well-bounded industry. Want to survive a strategic inflection point? Stop focusing on traditional metrics and find new customer needs that your organisation can uniquely address.

Why do business leaders so often miss these shifts? Successful companies such as BlackBerry maker Research In Motion and Nokia did not heed the early signs of a move to app-based smartphones. Video rental chain Blockbuster failed to acquire Netflix when it had the chance, in 2000.

Senior people rise to the top by mastering management of the KPIs in that sector. This, in turn, shapes how they look at the world. The problem is a strategic inflection point can occur and render the reference points they have developed obsolete. Take traditional retail. Its key metrics have to do with limited real estate, such as sales per square metre. Introduce the internet and those measures are useless. And yet traditional systems, rewards and measures are all built around them.....British economist Edith Penrose grasped this crucial link, she asked, “What is an industry?” In her studies, executives did not confine themselves to single industries, they expanded into any market where their business might find profitable growth.

Consider the energy sector: Historically, most power generators and utilities were heavily regulated...The sector’s suppliers likewise expected steady demand and a quiet life....that business has been rocked by slow-moving shifts many players talked about, but did not act upon. The rise of distributed energy generation, the maturing of renewable technology, increased conservation and new rules have eroded the traditional model. Many failed to heed the warnings. In 2015, General Electric spent about $10bn to acquire Alstom’s power business. Finance chief Jeff Bornstein crowed at the time that it could be GE’s best acquisition ever. Blinded by traditional metrics, GE doubled down on fossil-fuel-fired turbines just as renewables were becoming cost competitive.

Consider razor blades: Procter & Gamble’s Gillette brand of razors had long enjoyed a competitive advantage. For decades, the company had invested in developing premium products, charged premium prices, invested heavily in marketing and used its clout to get those razors into every traditional retail outlet. A new breed of online rivals such as Dollar Shave Club and Harry’s have upended that model, reselling outsourced razors that were “good enough” and cheaper, online via a subscription model that attracted younger, economically pressured customers...... Rather than fork out for elaborate marketing, the upstarts enlisted YouTube and Facebook influencers to get the word out.
Andy_Grove  BlackBerry  blindsided  Blockbuster  brands  cost-consciousness  customer_insights  Dollar_Shave_Club  executive_management  GE  Gillette  good_enough  Harry's  industries  industry_boundaries  inflection_points  Intel  irrelevance  KPIs  metrics  millennials  movingonup  myopic  obsolescence  out-of-the-box  P&G  power_generation  retailers  reward_systems  sales_per_square_foot  shifting_tastes  slowly_moving  warning_signs 
april 2019 by jerryking
New Hope for the New Economy
January 15, 2001 | WSJ | By Anthony Perkins. Mr. Perkins is editor-in-chief of Red Herring and co-author of "The Internet Bubble" (HarperBusiness, 1999).

By the end of last year, more than 100 dot-...
Silicon_Valley  George_Gilder  Kleiner_Perkins  Gilder's_Law  Andy_Grove 
january 2014 by jerryking
Look to Giants, Not Start-Ups, for Innovation
From the Wall Street Journal
Informed Reader
November 20, 2007; Page B8

When people think of radical innovations, they usually think of start-ups that shake an industry from the ground up. Some sectors are hobbled with "intractable, industry-wide problems" that only a large company can solve, says Mr. Grove, the co-founder of Intel. Mr. Grove, who has been researching the phenomenon with Stanford Graduate School of Business professor Robert Burgelman, calls this "cross-boundary disruption." Crucially, the industry on the other side of the boundary is "stagnant and populated with companies that cling to doing business the way they always have."
Andy_Grove  Apple  brands  breakthroughs  cross-boundary  disruption  industry_boundaries  innovation  large_companies  moonshots  Fortune_500  GE  stagnation  start_ups  Wal-Mart 
june 2012 by jerryking
The Education of Andy Grove
By RICHARD S. TEDLOW
December 12, 2005

(FORTUNE Magazine)
'If we got kicked out and the board brought in a new CEO, what do you think he would do?' Gordon answered without hesitation, 'He would get us out of memories.' I stared at him, numb, then said, 'Why shouldn't you and I walk out the door, come back, and do it ourselves?'"
Andy_Grove  profile  data_driven  cancers  critical_thinking  tough-mindedness 
may 2012 by jerryking
"The Best Advice I Ever Got" - March 21, 2005
March 21, 2005 | Fortune Magazine | By INTERVIEWERS Julia Boorstin.

Brian Grazer
"My whole career has been built on one piece of advice that came from two people: [MCA founder] Jules Stein and [former MCA chairman] Lew Wasserman. In 1975 I was a law clerk at Warner Bros. I'd spent about a year trying to get a meeting with these two men. Finally they let me in to see them. They both said, separately, 'In order for you to be in the entertainment business, you have to have leverage. Since you have none--no money, no pedigree, no valuable relationships--you must have creative leverage. That exists only in your mind. So you need to write--put what's in your mind on paper. Then you'll own a piece of paper. That's leverage.'

"With that advice, I wrote the story that became Splash, which was a fantasy that I had about meeting a mermaid. For years, I sent registered letters to myself--movie concepts and other ideas--so that I had my ideas officially on paper. I have about 1,000 letters in a vault. To this day, I feel that my real power is only that--ideas and the confidence to write them down."
advice  career  inspiration  entrepreneur  Managing_Your_Career  Clayton_Christensen  humility  MBAs  Siemens  Salesforce  Mickey_Drexler  JetBlue  Peter_Drucker  Jim_Collins  Rick_Warren  leverage  Xerox  Andy_Grove  conventional_wisdom  Richard_Parsons  negotiations  Jack_Welch  Vivek_Paul  thinking  Starbucks  Warren_Bennis  Richard_Branson  Warren_Buffett  Brian_Grazer  creating_valuable_content  Lew_Wasserman 
december 2010 by jerryking
What Detroit Can Learn From Silicon Valley - WSJ.com
JULY 13, 2009 | Wall Street Journal | By ANDREW S. GROVE.
Vertically integrated production is a thing of the past. Will the auto
industry's new overseers catch on?
silicon_valley  Andy_Grove  Detroit  automotive_industry  vertical_integration  layer_mastery 
august 2010 by jerryking
Grove Backs an Engineer’s Approach to Medicine
May 17, 2010 | Bits Blog - NYTimes.com | by ANDREW POLLACK.
Mr. Grove has pledged $1.5 million so that the University of California
campuses in San Francisco and Berkeley can start a joint master’s degree
program aimed at so-called translational medicine — the process of
turning biological discoveries into drugs and medical devices that can
help patients.

The idea is to expose students to both the engineering prowess of
Berkeley and the medical research of San Francisco to train a new breed
of medical innovator. “What we have learned from decades of rapid
development of information technology is that the key is relentless
focus on ‘better, faster, cheaper’ — in everything,’’ Mr. Grove said in a
statement. “The best results are achieved through the cooperative
efforts of different disciplines, all aimed at the same objective.”
Andy_Grove  medical  innovation  cheap_revolution  interdisciplinary  medicine  engineering  medical_devices 
may 2010 by jerryking
How Big Companies Can Find Room to Innovate -
November 19, 2007 | The Informed Reader - WSJ | by Robin Moroney
size  Andy_Grove  innovation  Apple  GE  Wal-Mart  large_companies 
january 2010 by jerryking
Fire Yourself -- Then Come Back and Act Like a New Boss Would
OCTOBER 9, 2006 | Wall Street Journal | by CAROL HYMOWITZ.
..."companies must repeatedly reinvent themselves to stay
strong...companies can't survive as they once did by churning out the
same products or services in the same way year after year. The most
successful companies don't wait until they're in trouble or are
overtaken by rivals to make changes. The trick is to analyze portfolios
constantly, to move quickly to shed weak businesses and to gamble on new
opportunities without making the company unstable...."Windows of
opportunity open and close so quickly today, you can't just mull
decisions right in front of you. You have to look around the corner and
figure out where you need to go,...learn how to change directions fast.
...
IBM  Intel  Andy_Grove  reinvention  opportunities  nimbleness  speed  agility  windows_of_opportunity  accelerated_lifecycles  portfolios  pre-emption  kill_rates  portfolio_management  unstable  instability  assessments_&_evaluations  Carol_Hymowitz 
december 2009 by jerryking
Five Things I've Learned From Andy Grove - America's Business (usnews.com)
November 06, 2006 01:00 PM ET | Rick Newman

(1) The most enduring power comes from knowledge, not from status.
(2) Knowledge helps you know when it's time to change.
(3) Certainty is deadly.
(4) Fear is highly motivating
(5) Even geniuses make mistakes.
profile  lessons_learned  Intel  Andy_Grove  overconfidence  life_skills  fear  mistakes  uncertainty  pretense_of_knowledge  certainty 
april 2009 by jerryking

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