Category Archives: Competition

Going to Pieces

It’s hard to miss the changes in the media world, specifically, the demise of the Blockbuster empire. Netflix has a business model that is a game changer, a Blockbuster buster, as iTunes changed the way we access music and other entertainment, a CD and DVD killer. The world of content will soon be without the burdens of physical media. I’m fascinated by the Blockbuster busting by a competitor, one implementing the very strategy that made Blockbuster king of the block. Blockbuster was the brainchild of Wayne Huizenga, an entrepreneur recognized for this value creation strategies. Huizenga’s strategy was to take businesses that were very fragmented in the marketplace and integrate them, creating customer value. He did the same in the world of waste management. Interestingly, Netflix saw the Blockbuster blindness to its current fragmentation and jumped in.

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Roads, Forks, and Prongs

The term robber baron is said to have originated as a medieval name attributed to those that controlled passage on the Rhine River and charged exorbitant tolls. They recognized the power they held, as constrainers or enablers of commerce. The term lived on and thereafter was attached in 19th century America to the magnates that built and operated the railroads. Their power, the same as their predecessors, came as they became the harvesters of the power that came to gatekeepers to commercial traffic. The big and exciting commercial wars in the mid to late 1800’s were about control of the rails. The magnates who built the rails, steamship lines, and the routes of commerce did much to shape the course of history and how we operate today. We may not recognize names like Gould, Crocker, Flagler (outside of Florida), Harriman or Vanderbilt, but their tribe of visionaries and shapers continues on.
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My Way or the Highway

American Airlines war with the web is a fascinating series of events. Nobody can argue that the web is the neural and circulatory network for the preponderance of businesses. Unavailability and inaccessibility are likely to be two deathly symptoms of a commercial entity headed for life challenging times. Now, when I hear about accessibility issues, I tend to associate them with technical or network failures. Something broke, or glitches or evildoers are driving the calamity. Not so in this case. This war has to do with how accessibility is managed. American has made a decision that they will set the rules of how customers can access them.

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Who’s in Your Wallet?

Many great cities over developed for one important reason. They were at crossroads, or at bays, river crossings, or safe harbors. Some were near resources to be harvested or emerging roads, tracks, or caravan routes. They grew because they were or would become markets. Markets towns enabled trade, commerce, and exchanges that enabled value creation. Agriculture, mining, cattle, diamonds, forestry … all types of enterprises emerged, so that exchanges could be made, with money or barter as instruments. We could get and sell stuff. For most of human history, markets were visible, tangible, and somewhere we travelled to buy or sell. This tangible requirement and the transportation linkages determined life or death to commerce and the development of cities. Ask the railroad towns that were bypassed by the interstate highway system or mining towns that had no metals or minerals left to harvest. Our conquest of time and space over centuries has shaped this dynamic.

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Better Late Than Never, or Better Never Than Late?

Labor Day weekend is upon us as is also the statistical peak of the hurricane season. Somehow the coincidence befits the times as it may well be a different type of statistical peak for labor. The Labor Department defined the day as “Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.” It provokes an interesting question as to who is the chicken and who is the egg? Are “strength, prosperity, and well-being of our country” a consequence of the labor movement or the cause? What does the experience of our current situation say?

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Who’s Not on Board?

Not that long ago, a major mobile phone carrier had an effective advertising campaign with a catchy slogan. Yet, I found their slogan troubling. It was troubling in that their banner, “We have fewer lost calls” left with me an impression that “we’re not as bad as the other guys” was written with the intent to establish a positive differentiator of quality and reliability. My reaction then was that the goal was to be the best of the bad, or cream of the crap. Upon reflection, I realized that the problem was with me, and in fact, the carrier’s message was the right one. This carrier was actually speaking the language of quality, not of spin (as I confess was my reaction). Quality is measured by the likelihood of failure against a specification. In their case, our case, it was a message that what mattered to the customer was continuity of service and there is a probability that that service will be interrupted, and the best do it fewer times. The carrier must have studied Dr. Noriaki Kano and realized that in some cases, the best can mean fewer defects, and failures against a basic requirement can only bring dissatisfaction. For the basic requirement of service availability, a service unavailability measure is the right metric and satisfaction is not achievable, that is, zero defects can bring only zero dissatisfaction.

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Seneca, Darwin, And The Flying Dinosaurs

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” Charles Darwin. It is very specific about who or what survives, yet the more significant message is the meaning that “if you are not responsive to change, you will not survive.” There is ample anthropological evidence providing insights into how the differences we see between peoples may have evolved. It becomes more fascinating when I see birds that share a common ancestor with dinosaurs. Much of the same applies to organizations, governments, cities, businesses, religions, and even management systems. Management systems contain the DNA and resources that define how an organization operates with the intent of thriving and surviving to thrive another day.

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I Can’t Hear What You’re Seeing

For many years, the term Voice of the Customer has been a source of incalculable confusion and a hazardous source of misdirection. The reality of dealing with a cacophony of voices that can often come from the many interfaces and service points is daunting for some. Discerning the signal from the noise fosters subjective simplification and can and too often yield risky and sometimes shallow insights carried forward into our delivery of services.
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Going for the Gold

By now many of us are working through the withdrawal symptoms of POSD, or Post Olympic Stress Disorder. The quality of coverage keeps ratcheting up every time, particularly with the clarity of HDTV, bigger screens, and cameras suspended in truly agile systems. I am amazed at how the athletes perform at levels that continue to redefine what is humanly possible and just how little the difference is between the first and the fifth placers … often a fraction of a second. High performance is redefined.
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Blaise Pascal and the Somali Pirates

Are we confident that our processes are delivering to the right quality and compliance requirements? How did we decide what the right controls, checks and balances are? Do we build in a safety margin or pay for insurance because we might fail? After all, failure has consequences, and insurance and safety cushions can be costly.
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