How to Confront Relentless Commoditization

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Great Excerpt
DennisQ   6/17/2011 10:30:57 AM

I think that's a well chosen excerpt and it really makes me want to read the book.

"It’s not just about what you create. It's also about what you choose to leave behind." I agree. And I actually posted yesterday how smart I thought the sale of the PC business was to Lenovo, in hindsight.

I think many organizations do not heed this advice and that's why so many companies fail to have the lifespan and long-term success that IBM has enjoyed. Too often executives fail to adapt and attempt to continue to rely on the successes of the past, even when they are objectively past their prime. Change can be difficult, and it's very easy to form an emotional attachment either to specific products, people, or methods of doing things. Sometimes you just need to throw out the idea of reviving past success and either let it die or gracefully exit before everything goes downhill.

Anyhow, thanks for pointing this out Bolaji!

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Don't hang on too long
FLYINGSCOT   6/17/2011 12:53:57 PM

From my own experience I believe companies that do not do well are those that oftentimes try to "flog a dead horse" for lack of ability, fear or leadership to do anything else.  Successful companies set the trends.  Next are companies that can anticipate trends or follow very quickly with fast turn products.  Bringing up the rear are those that try to do what they have always done and not do it well enough ANYMORE.  In high tech this trait of hanging on to something that should be dropped is often exacerbated by poor (and substantial) investments in internal technology where outsourcing should have been employed.

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The whole desktop PC era was thanks to IBM
prabhakar_deosthali   6/19/2011 3:54:14 AM

The world must acknowledge that it was because of IBM that the world saw the PC coming to their desktop. In early 80's the strategic decison by IBM to make the design of the PC open to all the third party developers and system integrators was the key to make the PC a commodity. For many years , a PC made by the thrid party developers used to be called IBM-PC-Compatible to give the credibility to the product and to give the guarantee to the customers that it would run all that software and hardware ,that would run on the original IBM PC.


If at that time IBM would have decided to keep the PC design their proprietary , then the world might not have seen the proliferation of the commoditized computing that is available today.

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Re: Don't hang on too long
Ariella   6/20/2011 9:22:10 AM

Good observation, Flyingscot. It's rather like the quote, "Some people make things happen, some watch things happen, while others wonder what has happened."



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