It is the powerful and traditional organisations that will lose out to those that are smaller, nimbler and more connected. In her recent essay and pod cast the excellent Nilofer Merchant describes how in the Social Era the herd of fast-moving gazelles will beat the 800lb gorilla. And with this in mind, she has also written the obituary for Traditional Marketing Strategy. RIP, Traditional Strategy: 1930-2012. We loved your work – and it was great knowing you…
Cap Gemini recently reported that over 80% of CEO’s they surveyed identified idea sharing as the single most important element of innovation – and yet only 16% said they had the right culture to do it. And General Electric’s (GE) survey of top global marketers revealed that whilst 86% of them agreed that partnerships were the most important element of innovation – only 21% were able to build them. We call this ‘The Collaborative Paradox’: there is an increasing demand for innovation, which is driven by smarter relationships – but due to a lack of internal and external collaboration skills, there is often a failure to innovate.
Two recent articles in HBR comment on the likely impact of Spotify – and how the launch of the Swedish music service could spell a radical change in the future of the music business, the broader content industry – and even Apple’s iTunes service. Maxwell Wessell points out that Spotify is a classic ‘low end disrupter’ that ironically could now have the same impact upon Apple – that iTunes originally had on the music retailing business – whilst James Allworth suggests consumers could get a shock if the Swedish system changes its pricing..
Hewlett Packard grew its business using powerful partnerships with Intel (chips) , Oracle (databases) and Cisco (networking) – but as Judith Hurwitz points out in a recent article published in Harvard Business Review (HBR) – it now needs to revisit and reinvigorate these key relationships to regain its innovative edge.