Experimental Capitalism
by Haydn Shaughnessy

Posted on Leave a commentPosted in 8th Global Peter Drucker Forum

It seems like an amazing time for entrepreneurism. Yet, if measured by the net addition of new companies to the US economy, home of the startup, or the number of new startups, entrepreneurship has been in decline for twenty years, according to both the Kauffman Foundation and Brookings Institute.We have convinced ourselves that the startup scene is vibrant and we need to ask why. There are similar illusions around the decline of larger companies. You’ve heard it said often enough that the lifespan of companies on the S&P 500 is also in decline. This too tends to be untrue. Companies don’t disappear when they leave the S&P 500. New companies arrive who have earned their […]

Patterns of Disruption and the Great Transformation (part 2)
by Haydn Shaughnessy

Posted on Leave a commentPosted in 6th Global Peter Drucker Forum

In innovation and transformation we have avoided looking at the structural transformation of industries. This is arguably due to the fact that so many industries are changing at the same time, making the analysis of structural change an overwhelming task. Other reasons include: the fact that the change driver is not technology and nor is it an exogenous shock such as a fast rising emerging economy. Instead we have moved into an era where a combination of factors can quickly fragment an industry from tight vertical integration to broad horizontal dispersion.   The diagram below summarizes disruption forces in the IT and telecoms space from the late 1990s onwards. Reading the diagram from the left, […]

Patterns of Disruption and the Great Transformation
by Haydn Shaughnessy

Posted on Leave a commentPosted in 6th Global Peter Drucker Forum

The economy is experiencing successive waves of change in industry after industry.   It is important to understand the common themes behind these changes and have a model that helps executives anticipate and manage the impact of disruption or to devise disruptive strategies. Increasingly executives are talking about change as “disruption” and many smaller companies are positioning themselves as “disruptors” of a sector. Arguably “disruption strategy” is taking over from competitive strategy. If so then we need to clarify terms and grasp what this means.   As identified by Christensen, disruption typically creates new markets. If it doesn’t do this then strategy is typically competitive rather than disruptive. If we bear that distinction in mind […]