Can a company actually disrupt itself?

Peter DiamandisDr.Peter H. Diamandis is a Greek American engineer, physician, and entrepreneur best known for being the founder and chairman of the X PRIZE Foundation, the co-founder and chairman of Singularity University and the co-author of the New York Times bestseller Abundance: The Future Is Better Than You Think.

I often say that businesses must disrupt themselves (before someone else does) to survive.

The fact of the matter is: very few companies have actually successfully disrupted themselves.

Instead, most successful companies “disrupt adjacencies”: they leverage their existing assets to expand into new, high growth markets. They actually disrupt someone else!

Let’s start with a few disruption examples.

FACEBOOK Disrupts SMS MESSAGING: Facebook decided to disrupt SMS messaging with the launch of Messenger. Because Facebook is a platform, they have been able to garner 700M monthly active users globally – driving a projected 38% decline in Telco SMS revenue in North America by 2017.

TESLA Disrupts ENERGY STORAGE: Tesla, an electric car company, is disrupting energy storage with the Tesla Powerwall. They used the technology developed for their cars to branch into this new ($19 billion) market.

GOOGLE disrupts MOBILE PHONES: Google is an Internet search company, but in 2008, Google got into the phone/hardware business, shipping Android and beginning the disruption of mobile operating systems. Android currently commands an astounding 82.8% market share.

Continue reading Can a company actually disrupt itself?

PostCapitalism: The Economy Of The Future? #Soros #Obama #Stiglitz #Meltzer

Over the past two centuries or so, capitalism has undergone continual change – economic cycles that lurch from boom to bust – and has always emerged transformed and strengthened. Surveying this turbulent history, journalist and Channel 4 economics news editor Paul-MasonPaul Mason wonders whether this time capitalism itself has reached its limits and is changing into something wholly new.

At the heart of this change is information technology: a revolution that has the potential to reshape utterly our familiar notions of work, production and value; and to destroy an economy based on markets and private ownership. Almost unnoticed, in the niches and hollows of the market system, whole swathes of economic life are changing. Goods and services that no longer respond to the dictates of neoliberalism are appearing, from parallel currencies and time banks, to cooperatives and self-managed online spaces. Vast numbers of people are changing their behaviour, discovering new forms of ownership, lending and doing business that are distinct from, and contrary to, the current system of state-backed corporate capitalism.

This talk was organised by and recorded at the RSA.

The orignal article was posted in Social Europe Journal, click on
http://www.socialeurope.eu/2015/10/postcapitalism-the-economy-of-the-future/

An interview on ”Education reform needed in Greece” September 15, 2003. Relevant today

By Yiannis Papadoyiannis – Kathimerini

drjohn11aDr. John Psarouthakis, a US-based businessman and former professor at the University of Michigan and lecturer at MIT, says the importance of higher education and the minimal interference of government in the economy cannot be overstated. «Without effective higher education, it is very difficult for Greece to achieve economic development and social progress at rates that will accelerate its convergence with the other European Union partners,» he said in an interview with Kathimerini.

“I believe that in the past 12 years my concerns worsened and Greece tried to make up with debt what she could not do competitively—to cover her financial needs with debt instead of a growth economy” John Psarouthakis, October 24, 2015

Psarouthakis expresses concern at the frequency of changes in the Greek education system. «It is odd how easily each minister of education changes crucial elements in the education system, such as examinations or procedures for university entry.» By contrast, in Europe and the USA, where higher education is on the cutting edge of new knowledge, there is stability and ministers function and decide within given frameworks, he notes. The picture at Greek universities is even more disappointing. «In practice, universities in Greece do not have the necessary autonomy, while their structures are based on past eras, which cuts them off from society and its needs.»

The continuous «dialogue» between universities and society is a process of crucial importance. Without it, tertiary education establishments will produce scientists without the training required to work for its further progress. «The inability of higher education institutions to listen to and communicate with society intensifies problems: Graduates cannot be absorbed by the labor market while the country is losing ground in both educational level and competitiveness, holding down its growth rates and undermining convergence.

Continue reading An interview on ”Education reform needed in Greece” September 15, 2003. Relevant today