In This Issue
Vol. 27 Issue 9
PIVOT: HOW SYSTEMS REINVENTION WILL DRIVE THE YEAR AHEAD
- The Great Pivot
- PIVOT I: The New Energy Ecosystem
- PIVOT II: Healthcare That Skips Insurance Companies
- PIVOT III: EV or Bust
At some point, with enough pressure, every system will break.
When the barriers to innovation are weaker than the forces for change, one of two things happens: either the barriers collapse or the need for change drives consumers around the walls to find a new solution, building the beginnings of a new business or system.
Just ask Kodak, which scoffed at the idea of digital and then fell into film-based failure. Consumers went around Kodak’s walls in favor of a product that allowed them to take more photos for fewer dollars.
Or consider Henry Ford, who ignored the need for cheaper vehicle financing to his own peril:
In 1921, the Ford Motor Company sold about 2/3 of all the cars built in the U.S. By 1926, this share had fallen to approximately 1/3. And in 1927, when Ford belatedly responded (at tremendous financial cost and internal strife) to changes in the market’s tastes and competitive innovation by shutting down production temporarily to re-tool his factories and bring the Model A to the market, that percentage fell to about 15%.
This is not a new idea. In fact, it’s so common that there’s a popular meme for it: Innovate or die.
This year, more than ever, we will need to live by that tenet.