Embed Size (px)
DESCRIPTION
“a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end”
Citation preview
Strategic Inflection PointsDavid Mayes
©David Mayes 1
Strategic Inflection Points: When & How to Adjust Strategies
David Mayes, Instructor
©David Mayes 2
Strategic Inflection PointsWhat are they?
What AreStrategic Inflection Points?
©David Mayes 3
Strategic Inflection PointsWhat are they?
What Is a Strategic Inflection Point?
“a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may
just as likely signal the beginning of the end”
Andrew S. Grove, Only the Paranoid Survive
©David Mayes 4
Strategic Inflection PointsWhat are they?
What AreStrategic Inflection Points?
©David Mayes 5
Strategic Inflection PointsWhat are they?
Strategic Inflection Points
Andy Grove, Intel's co-founder, also described a strategic inflection point as "an event that changes the way we think and act."
Inflection points can be a result of action taken by a company, or through actions taken by another entity, that has a direct impact on the company. Regulatory changes, for instance, could lead to an inflection point for a corporation that was previously held back by regulatory compliance issues. Inflection points in technology include the advent of the Internet and smart phones. Politically, an inflection point can be illustrated by the fall of the Berlin Wall or the fall of Communism in Poland and other Eastern Bloc countries.
©David Mayes 6
Strategic Inflection PointsWhat are they?
The Only Constant is Change
• Time = transitions & change
– Customer relationships
– Business models
– Primary markets
• Change is inevitable
• Corporate adaptation to change = survival
©David Mayes 7
Strategic Inflection PointsWhat are they?
The Inflection Point Curve
©David Mayes 8
Strategic Inflection PointsHow Do You Recognize Them?
How Do You RecognizeA Strategic Inflection Point?
“At some point on a trail, a hiker realizes that he is lost, but cannot judge exactly where on the trail or when he became lost.”
©David Mayes 9
Current State Analysis
• One Method for Identifying an Inflection Point
– Organizational Value Quadrant (OVQ)
– Profit “Heat” Mapping
– Other market analysis tools
Strategic Inflection PointsHow Do You Recognize Them?
©David Mayes 10
Strategic Inflection PointsHow Do You Recognize Them?
Current State Analysis:Organizational Value Quadrant (OVQ)
©David Mayes 11
Strategic Inflection PointsHow Do You Recognize Them?
Current State Analysis:Analyze Profit By Customer Grouping
©David Mayes 12
Strategic Inflection PointsHow Do You Recognize Them?
Find Problem Quadrants
©David Mayes 13
Strategic Inflection PointsHow Do You Recognize Them?
The Only Constant is Change
• Sometimes clear signals and direction are indicated
• Sometimes the indications are less obvious
• Change is nevertheless inevitable
• Corporate adaptation to change = survival
©David Mayes 14
Strategic Inflection PointsHow Do You Recognize Them?
How NOT to Analyze Strategic Inflection Points
“Evolutionary Steps from Strategic Inflection Points to the Next Generation Spiral Model”
Video:
http://www.youtube.com/watch?v=HOi7innr_mk
©David Mayes 15
Questions?
Strategic Inflection PointsQuestions?
©David Mayes 16
Group:
Strategy & Corporate Strategic Planning Xchange
http://www.linkedin.com/groups?gid=2970066&trk=myg_ugrp_ovr
Recommendation
©David Mayes 17
Strategic Inflection PointsDavid Mayes
©David Mayes 18
