How Likely Is Your Industry to Be Disrupted? This 2×2 Matrix Will Tell You

Harvard Business

Incumbents in these industries often own established brands, proprietary technology, and control of distribution channels. Meanwhile, increasing numbers of incumbents are being compelled to adopt these technologies to stay competitive, even as cost and productivity pressures become acute. Previously strong barriers to entry have perished; fixed assets such as car fleets, hotels, bank branches, and landline infrastructure have become weaknesses.

The Three Decisions You Need to Own

Harvard Business Review

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. Today most if not all industries are impacted by digitization—mobile technology, big data, and the like. Decision making Leadership CEOs face countless decisions. The best executives understand which ones they need to focus on and which ones they can delegate.

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Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

Large downturns (such as this recession), technology disruptions, or regulatory shifts create discontinuities that simply accelerate the industry’s evolution toward this equilibrium state. PL and CM: Most companies look outside to adjacent markets for growth and invest in assets to exploit those opportunities. And, invariably, you invest in assets. Assets are important, but they are, increasingly, table stakes in most competitive industries; everyone in the game has them.

Say “No” to Innovation-in-General

Harvard Business Review

For over an hour, the panel discussed all of the innovative projects they’d worked on — spanning projects from Google Fiber to ad bidding technologies at Facebook. But as we accept that leadership comes in many forms, from managing crises to coaching employees, we need to do the same when it comes to innovation. It’s the continuous technological innovations that will exploit your fixed asset base.