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Index
Preface: Only the Paranoid Survive “Sooner or later, something fundamental in your business world will change.”
Something Changed
“New rules prevailed now-and they were powerful enough to cost us nearly half a billion dollars.” What Happened to Us “That Guy Is Always the Last to Know”
A “10X” Change
“What such a transition does to a business is profound, and how the business manages this transition determines its future.” The Six Forces Affecting a Business A “10X” Force The Strategic Inflection Point
The Morphing of the Computer Industry
“Not only has the basis of computing changed, the basis of competition has changed too.” Before the Strategic Inflection Point After the Strategic Inflection Point Winners and Losers The New Rules of the Horizontal Industry
They’re Everywhere
“Strategic inflection points are not a phenomenon of the high-tech industry, nor are they something that only happens to the other guy.” “10X” Change: Competition Wal-Mart: An overwhelming force in town Next: The software company “10X” Change: Technology Sound takes over silent movies Upheaval in the shipping industry The PC revolution: A tale of denial “10X” Change: Customers Changing tastes in cars Attitude shifts The double whammy in supercomputers “10X” Change: Suppliers Airlines flex their muscles The end of second sourcing “10X” Change: Complementors “10X” Change: Regulation The demise of patent medicines The reordering of telecommunications Privatization
“Why Not Do It Ourselves?”
“The memory business crisis—and how we dealt with it-is how I learned the meaning of a strategic inflection point.” Entering Our Strategic Inflection Point The Route to Survival Looking Back
“Signal” or “Noise”?
“How do we know whether a change signals a strategic inflection point? The only way is through the process of clarification that comes from broad and intensive debate.” Is X-ray Technology a “10X” Force? RISC versus CISC Is It or Isn’t It? Helpful Cassandras Avoiding the Trap of the First Version Debate Arguing with the Data Fear
Let Chaos Reign
“Resolution comes through experimentation. Only stepping out of the old ruts will bring new insights.” The Touchy-Feely Issues The Inertia of Success Strategic Dissonance Experimentation The Business Bubble A New Industry Map
Rein in Chaos
“Clarity of direction, which includes describing what we are going after as well as describing what we will not be going after, is exceedingly important at the late stage of a strategic transformation.” Traversing the Valley of Death Redeploying Resources Leading Via Strategic Actions The Clarity Imperative Adjusting to the New Dynamic Dialectic The Other Side of the Valley
The Internet: Signal or Noise? Threat or Promise?
“Anything that can affect industries whose total revenue base is many hundreds of billions of dollars is a big deal.” What Is the Internet Anyway? Bits and Stolen Eyeballs What About Us? Threat or Promise? What Do We Do?
Career Inflection Points
“Career inflection points caused by a change in the environment do not distinguish between the qualities of the people that they dislodge by their force.” Your Career Is Your Business The Mental Fire Drill Timing Is Everything Get in Shape for Change A New World
Notes
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