Blog Post Three – Natural Selection in Business

An interesting week made notable for the final failure of HP’s Neoview. A quick look at my profile will show that I tried for two years to sell this system but alas, we had little success. Although this blog is intended to be non-IT and non-political, I think I will in time share with you some horrors from my experience. Bye the way, I am planning a very technical blog in the near future with a partner here in Sweden, you’ll be he first to know!

Blog Post Three – Natural Selection in Business

In nature, when resources are plentiful, species live together quite amicably. Even predator and prey reach a satisfactory balance whereby there is always food for both. However, when resources are scarce, species that were once happy together often turn into bitter enemies. The strong, big guy’s fight each other, determined to completely obliterate their competitor often resulting in mortal damage being inflicted on both. Whilst this is happening, the intelligent guys, who are inevitably smaller and physically weaker, get to work. Firstly, they take advantage of the preoccupation of the others by amassing their basic requirements quickly. They then diversify and find a niche for themselves, knowing that competition will come, but being determined to foresee it and avoid it where possible.

Most people accept that this is the way of the natural world and business dynamics tend to follow the same basic rules. Intelligent companies will not measure themselves by numbers of employees, amount of real estate or revenue alone, but will instead increasingly judge themselves on different values:

  • The average life time value of their key customers
  • The elapsed time for a new customer to become profitable
  • Public image
  • Customer retention
  • Knowledge, expertise and willingness of the work force
  • Brand awareness and flexibility
  • Environmental friendliness
  • Efficient and focused work practices
  • Customer satisfaction

Note: be aware that the little guys don’t always have to take on the big guys directly and in fact it’s usually best not too. Those of you who know the story about David and Goliath should be clear that this was not a simple big guy versus little guy competition in which David shows the world not to be afraid of a ‘larger’ opponent. The fact is that Goliath, although being big, had no noticeable weaponry whilst David however, had the equivalent in those days, of a sawn off shotgun. My guess is that if the two guys had met with equal weapons the result would have been rather less romantic but David showed some real common-sense here. He knew that if he wasn’t prepared for the fight he had no chance so he fought the battle very much on his own terms.

Advertisements

About bibongo

I'm a consultant in the field of Business Intelligence and have been since the mid 80's which gives you some idea of my age! I'm priviledged to have held senior positions with Teradata, Oracle, Hp and EMC. I have an English son and a Swedish daughter seperated by some 18 years which is another type of welcome challenge!
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s