Before Telecommuting and Online Retailing, we got Management by Walking Around .
Then the gurus told us to “re-engineer” the corporation (Japanese influence).
Then, Toyota was on the roll with Continuous Improvement (Al Gore was buying into this when trying to re-invent the US Government). True to its form, Toyota continuously improves its R&D, from EV racing to 3-wheel concept EV. The Prius has established itself as the category leader.
If you don’t re-invent, someone else will (the Innovator’s Dilemma).
In fact, Steve Jobs did a great job at breaking the vicious cycle with 99 cents per song proposition, knowing that disruption would be followed by destruction (of the music industry).
Once again, we learn that corporations are sitting on their war chests full of cash.
They are looking to buy small and promising competitors, often times, to eliminate “disruption” in one fell swoop.
The big guys’ version of Continuous Improvement is Continuous Consumption, pac-man style.
From a Marketing standpoint, Hyundai and Kia have done a great job gaining traction and acceptance.
This is when GM, VW and other car makers all try to make a comeback in the face of pent-up demand (Recession hesitation).
Not only technology leapfrogs, consumers also buy in to the latest and greatest e.g. Galaxy IV.
More gadgets, more interconnection and integration.
From home to car to the office (even at those third places like Starbucks).
There will be a generation of consumers who take broadband for granted (reminds me of those pin ball machines, a 70’s must-have for off-campus hangouts).
Putting it all together. Companies need to continuously improve their products, services and ways to reach their target markets.
Buyers look for a positive experience, both on and off-line. Here is where the classic text, Influence, counts: social proof, consistency and scarcity.
When the Tesla is in back order, it’s a good sign (scarcity). So is the Prius (consistency). Before we know it, those with the guts to go for the Gold win e.g. full plug-in after trying hybrid cars(EV still needs critical mass -or Social Proof to be validated). With those war chests, I am sure companies can now afford to leap-frog their R&D knowing in their guts that there is a price for everything, including in-action. Even if you do nothing, just sitting on the track, you will likely be run over by a train. Kaizen.
Thang Nguyen 555 