How much of an impact has Digital Transformation really had on major markets? How often do unicorns disrupt incumbents? Let’s dig into the data over the last 30 years.
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SHOW NOTES:
- How Incumbents Thrive and Survive (HBR) - Jullian Birkinshaw
CHANGE COMES SLOW AT FIRST, AND THEN ALL OF A SUDDEN (or does it?)
- Since 1995, 40% have stayed, 50% have merged/sold, 7-8% dropped out, and 50% of existing move up into F500.
- The Blockbuster, Nokia and Kodak stories are outliers.
THE USER EXPERIENCE HAS CHANGED, BUT THE COMPANIES BEHIND IT HAVEN’T AS MUCH
- Disruption is about more than just newer/better technology
- Existing brand relationships, trust, physical locations, supply-chains, partner-networks all play a key role for incumbents
- Everyone is investing in digital transformation, for various reasons - user experience, data analysis, cost cutting, etc.
- Four paths as an incumbent - [1] Fight back, [2] Double down, [3] Retrench, [4] Move away
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