About knowledge of disruption

August 1, 2006 By

Tom Foremski reports that IBM knew it was being disrupted by forces outside of it (aka Microsoft) and was powerless to stop them.

Someday I’ll print an email that proves that Microsoft’s top executives knew it was being disrupted in 2005 by Internet forces and was powerless to stop them. Someday. That email I’m thinking of was written before Yahoo bought Flickr and got a response that included the words “business value” repeated 13 times.

Now THAT is a gesture! :-)

And this whole blog post is a gesture too. Can you figure out what the gesture is? Heheh.

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  • There are often telltale warning signs that an industry is being disrupted:

    * Profit margins rise may on flat to down sales as you cater to best customers or as smaller producers are squeezed out;
    * Industry fragments into niches;
    * New and sometimes strange entrants gain toeholds in the market, often with marginal customers;
    * Specialized expertise no longer required;
    * Commoditized pricing;
    * Management playbook fails;
    * Growth gap opens;
    * Management seeks a miracle. (This last stage is often when mergers are trotted out. You name the sector, this nearly always happens.)

    The key issues are that management has to keep its eyes open that
    1. disruption is possible or is now underway and
    2. that management seeks new sources of value to provide customers

    Details and what to do about it at:

    http://www.ondisruption.com/my_weblog/2006/08/d...
  • /pd
    yeah, Robert-- the finger is a nice guesture .. now that's reading between the fingers !! :)-
  • Christopher Coulter
    Flipping off Steven Sinofsky, eh? ;)

    And instead of snapping up blog-loved myopiaistic Flickr, the better bet woulda been Photobucket.
  • Cody: that was a pretty nice gesture there! Did you really just say "read between the fingers?" Heheh.
  • Oooohhh, is this the new meme!?!?! OMG, look, I'm making a gesture...and it's not a nice one, hehe

    Damn I hate memes.
  • After reading your last three posts, I know I'm making a gesture...

    No, not THAT one. The one where you turn your head to one side, raise your eyebrows, and look like a confused puppy...
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