Professor Rita McGrath at business of software 2013 end of competitive advantage

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This document discusses strategies for managing disruption and careers in a transient economy. It suggests moving from organizational career management to individual career management with a focus on continuous learning. Leaders need to shift from defending past advantages to continuously reconfiguring and reallocating resources, developing innovation capabilities, and seizing new opportunities. The new playbook involves healthy disengagement from the past, deft resource allocation, and an entrepreneurial and discovery-driven mindset.

Business Technologie

Copyright 2013 by Rita Gunther McGrath

1

CONTACT RITA

Rita Gunther McGrath
rdm20@columbia.edu
www.ritamcgrath.com
Follow me @rgmcgrath

A Tale of Two Companies, two oil billionaires,
a Japanese innovator and a whole lot of
denial

C
3 opyright 2013 by Rita Gunther McGrath

New forms of competition that
we never considered!

VS

4

The new playbook for strategy
Continuous Reconfiguration
Healthy Disengagement
Deft Resource Allocation
Innovation Proficiency
Discovery Driven Mindset
Entrepreneurial Career Management

Copyright 2013 by Rita Gunther McGrath

5

What does it all mean for
individual careers & talent?
From

To…

Organizational systems

Individual skills

A stable career path

A series of ‘gigs’

Hierarchies and teams

Individual superstars

Infrequent job hunting

Permanent career
campaigns
Careers managed by the
individual

Careers managed by the
organization
Copyright 2013 by Rita Gunther McGrath

6

A recipe for disruption

Implications from the book for
would-be disruptors

Copyright 2013 by Rita Gunther McGrath

7

Find an attractive target

Copyright 2013 by Rita Gunther McGrath

8

“I don’t want any surprises
and don’t bring me bad news”

Copyright 2013 by Rita Gunther McGrath

9

$What does their customer really need?  Same need that the incumbent provides, but with a twist?  Making what the incumbent provides unnecessary?  Doing the same thing, but at a fraction of the price?  Customer need that is not being met, is being met badly or expensively, or is being met in such a way that infuriates customers?  Might they reward you for making their experience better? Copyright 2013 by Rita Gunther McGrath 10$

Payment customers

Copyright 2013 by Rita Gunther McGrath

11

US Banks raked in $45.3 Billion in fees from
merchants in 2008 & its gone up since then

Copyright 2013 by Rita Gunther McGrath

12

Next, you’ll need a business
model

Copyright 2013 by Rita Gunther McGrath

13

Here’s the disruptor

Copyright 2013 by Rita Gunther McGrath

14

The transient advantage
economy & entrepreneurship

Copyright 2013 by Rita Gunther McGrath

15

Time & Interest permitting

Implications for leaders in large
organizations

Copyright 2013 by Rita Gunther McGrath

16

From Stability to Continuous Reconfiguration

Copyright 2013 by Rita Gunther McGrath
17

From defending past advantages
to healthy disengagement

Copyright 2013 by Rita Gunther McGrath

18

From resources held hostage
to deft reallocation

• Textiles
• Chemicals

1940s1960's

Copyright 2013 by Rita Gunther McGrath

1980s-1990s
• Advanced
Materials
• Flameproof
Products

• Specialty
Materials
• High-IP specialty
chemicals

2000s on

19

From episodic innovation to a
sustained capability

Copyright 2013 by Rita Gunther McGrath

20

From defending advantages to
seizing opportunities

Copyright 2013 by Rita Gunther McGrath

21

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2. CONTACT RITA Rita Gunther McGrath rdm20@columbia.edu www.ritamcgrath.com Follow me @rgmcgrath

3. A Tale of Two Companies, two oil billionaires, a Japanese innovator and a whole lot of denial C 3 opyright 2013 by Rita Gunther McGrath

4. New forms of competition that we never considered! VS 4

5. The new playbook for strategy Continuous Reconfiguration Healthy Disengagement Deft Resource Allocation Innovation Proficiency Discovery Driven Mindset Entrepreneurial Career Management Copyright 2013 by Rita Gunther McGrath 5

6. What does it all mean for individual careers & talent? From To… Organizational systems Individual skills A stable career path A series of ‘gigs’ Hierarchies and teams Individual superstars Infrequent job hunting Permanent career campaigns Careers managed by the individual Careers managed by the organization Copyright 2013 by Rita Gunther McGrath 6

10. What does their customer really need?  Same need that the incumbent provides, but with a twist?  Making what the incumbent provides unnecessary?  Doing the same thing, but at a fraction of the price?  Customer need that is not being met, is being met badly or expensively, or is being met in such a way that infuriates customers?  Might they reward you for making their experience better? Copyright 2013 by Rita Gunther McGrath 10

19. From resources held hostage to deft reallocation • Textiles • Chemicals 1940s1960's Copyright 2013 by Rita Gunther McGrath 1980s-1990s • Advanced Materials • Flameproof Products • Specialty Materials • High-IP specialty chemicals 2000s on 19

22. CONTACT RITA Rita Gunther McGrath rdm20@columbia.edu www.ritamcgrath.com Follow me @rgmcgrath

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