Some claim Blockchain will fundamentally change the world. Others dismiss it as hype. The truth probably lies somewhere in between. Naturally, reaching your own conclusion of what Blockchain might mean for the world, your industry, or your business requires an understanding of what it is. Here we attempt to cut through some of the noise and describe, in accessible terms, what this technology, whether transformative or hype, really is.
We usually get it wrong. When trying to predict the path of innovations – which ones are hype, which ones are real, which ones will take hold, and which ones will fall out of favor – our record, as humans, is poor. We think this is because, in the study of innovation, people overlook a critical factor.
In my first article of this series on strategic openings, I covered three of the seven strategies successful companies used to create disruptive innovations that set them apart from the competition.
In chess, successful players know that a strong opening can give them the advantage to win the game. In fact, studies have shown that Grandmaster chess players often draw on something entirely “un-logical” from their playbook to create an unexpected opening. This is what gives them an early competitive edge over their opponent.
A study by one of my former professors at London Business School found that “Only 55% of the middle managers we have surveyed can name even one of their company’s top five priorities.”
Your ability to innovate depends on your ability to conceive of new strategic options, which in turn is a function of the number and variety of stories you recognize. When you face a challenge and ask, “What does Porter’s Five Forces tell me to do?” or “What does Clayton Christensen’s Disruptive Innovation model dictate?” you end up defaulting to what others – your competitors, your peers – would do as well. Instead, use our IDEAS framework – specifically the “Expand” step – as the key to getting out of that rut.
In our last blog, we argued that great strategies stem from impossible questions, typically a long-term one (e.g., Tesla’s how to create an electric vehicle the every-day consumer can afford?) and a near-term one (e.g., today Tesla’s might be how to establish the capacity to manufacture at scale?).
Why are so many breakthrough strategic possibilities killed off before they see the light of day? Years of research have provided us insight into the mistakes teams make that tend to kill off the most exciting ideas.
General Electric just announced it is selling off GE Digital, the much-hyped software business based in California and a keystone in GE’s strategy to transform itself from an unfocused conglomerate (in financial services and media) into a digital player that would usher in the next industrial era, creating the “industrial internet of things.”
We are passionate about understanding how the strategic conversations you hold – in boardrooms or hallways – can lead to breakthrough ideas … and why so often they don’t. We have found five mistakes teams often make that tend to kill off the most exciting strategic possibilities, and we’ve come up with a way to counter each mistake, called the IDEAS framework (Imagine, Dissect, Expand, Analyze, Sell).
In this article, I share this framework with you, in addition to a special announcement about a new program we are launching this month (see below).