Synopsis: Andy Grove - Only the Paranoid Survive
Jan 19, 2004, 10:33p
Andrew S. Grove - Only the Paranoid Survive
* In technology, whatever can be done will be done.
* 6 forces diagram
1) Power, vigor and competence of existing competitors
2) Power, vigor and competence of complementors
3) Power, vigor and competence of customers
4) Power, vigor and competence of suppliers
5) Possibility of what your business is doing can be done a different way
6) Power, vigor and competence of potential competitors
* Don't underestimate the force of complementors
* A Strategic Inflection Point is characterized by a dissonance between what the company says it is doing and what it is actually doing
* Train your instincts to pick up a different set of signals
* Horizontal industries live and die by mass production and mass marketing
* People who have no emotional stake in a decision can see what needs to be done sooner
* People in the trenches are usually in touch with impending changes early
* How to know if you're at a Strategic Inflection point:
1) Your key competitor is about to change
2) Your key complementor is about to change
3) People who are usually competent are losing it
* Definition of entrepreneur: someone who moves resources from areas of lower productivity and yield to areas of higher productivity and yield
* Take your time until the news you hear starts to repeat what you've already heard
* Fear is powerful in creating and maintaining passion. Fear of competition, fear of bankruptcy, fear of being wrong and fear of losing can all be powerful motivators.
* Powers: knowledge, organizational
* Emotional investment is a weakness - replacement of execs is largely motivated by bringing in someone who is not invested in the past so that they can act more rationally
* Strategic dissonance - divergence between actions and statements
* Continuously experiment
* "Put all of your eggs in one basket and WATCH THAT BASKET" - Twain
- in reality, this should be balanced with new directions
* In a good co-op, people acting in their own self-interest act in the interest of the whole (like in parts of the Internet)
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