Personal understanding: update, create, change
Innovation is a process of cognitive breakthrough and practice. Innovation is new thinking, new ideas, new things and new markets. Innovation should adapt to the times and environment.
Path dependence is a continuation of inertial thinking, a helpless expression that hopes to change but cannot act.
The goal should be set beyond the limits of his own ability. Bu Yun tries to never know what he can do, and ca n’t or ca n’t just be his cowardly performance.
Failure is a disaster, and it is also an opportunity for rebirth; failure is one's own and will be others'. The only thing to do is how to stand up from failure, learn from it, and regenerate life.
Chapter 7: Innovation is the life of
an enterprise Innovation is the core of the enterprise's development momentum and the inevitable result of market competition. Only by innovation can an enterprise break the routine and break the tradition; only by constantly innovating can it be invincible in the competitive competition forever.
77. Davido's Law: Continuously create new products while eliminating old products
Proposed by: Intel Corporation Vice President Davido
Points Comment: To stay ahead, you must always deny and surpass yourself.
The theoretical basis of Davido's law is to focus on the effectiveness of market development and interest segmentation. People always seize the opportunities in the market competition all the time, because only by entering the market first can it be easier to obtain a larger share and high profits. Intel Corporation has pursued Davido's law in product development and promotion, and has obtained generous returns. Intel is always a developer and advocate of microprocessors. Their products are not necessarily the best and fastest, but they must be up to date. For this reason, they do not hesitate to eliminate themselves even if they are selling products in the market. For example, the 486 processor, when this product is still in the market, they intentionally shortened the technical life of the 486 and replaced it with a Pentium processor. Intel uses Davido's law to always grasp the initiative of the market, leave competitors behind, attract suppliers and consumers around, guide the market, and control the market.
Only by continuously creating new products, eliminating old products in time, and making successful new products enter the market as soon as possible, can new markets and product standards be formed, so as to master the right to formulate game rules. To do this, the premise is to always lead in technology. Enterprises can only rely on the short-term advantages brought by innovation to obtain high "innovation" profits, rather than trying to maintain the original technology or product advantages, in order to achieve greater development.
78. Path Dependence: Jump out of the mindset Path Dependence
Presenter: New Institutional Economist North (D)
Comments: North (D) created the concept of "trajectory" of institutional change, the purpose is to Explain from an angle why all countries have not followed the same path of development, and why some countries have been underdeveloped for a long time, and they have always been unable to walk out of the strange circle of inefficient economic backwardness. After examining the modern economic history of the West, North said that in a country's economic development, there is a "path dependence" phenomenon in institutional changes.
It is similar to the "inertia" in physics. Once you choose to enter a certain path (whether it is "good" or "bad"), it may depend on this path. The established direction of a certain path will be self-reinforcing in future development.
Path dependence means that once a system is formed, whether it is effective or not, it will continue to exist and affect subsequent system choices for a certain period of time, just like entering a specific "path". Institutional changes can only follow this path Go on. "Path dependence-small events and environments can determine the outcome of a certain development, and once the results of certain small events and environments dominate, this development leads to a specific path." [1] Broadly, path dependence states "history Events that occurred at a certain time in the past will affect a series of events that occur afterwards. "[2] The path dependence in the narrow sense means" Once a country or region begins to develop along a trajectory, the cost of changing the development path is very high. There are other road choices, but established systems will hinder changes to initial choices. "
The choices people make in the past determine their current and future choices. A good path will play the role of positive feedback, and through inertia and impulse, a flywheel effect will be generated to enter a virtuous circle; a bad path will play a role of negative feedback, and may be locked in a certain low-level state.
The standard distance between the two rails of the American Railroad is 4 feet 8.5 inches. Where did this standard come from? It turned out that this was the British railway standard, while the American railway was originally built by the British. So why do British people use this standard? It turns out that the British railways were designed by the people who built the tram tracks, and this is the standard used by trams. Where did the railroad track standards come from? It turned out that the people who first built trams used to make horse-drawn carriages, and they used the wheel width standard of horse-drawn carriages. Because if the carriage at that time uses any other wheelbase, the wheels of the carriage will soon crash on the ruts of the old British road. why? Because the width of the ruts on these roads is 4 feet 8.5 inches. Where did these traces come from? The answer was determined by the ancient Romans, because in Europe, including the long-distance roads of Britain, were paved by the Romans for their troops. The width of the Roman chariot is 4 feet 8.5 inches. If you use different wheel widths to drive on these roads, the life of his wheels will not be long. And why use this as the wheelbase width? The reason is simple, this is the width of the two horses of the chariot.
Therefore, the design of the most advanced transportation system in the world today may have been determined by the width of two horses two thousand years ago. This is path dependence. It may seem a bit paradoxical and humorous, but it is a fact.
Career can not get rid of this path dependence, once we choose "horse", our life track may be only 4 feet 8.5 inches wide. Although we are not satisfied with this width, it is already difficult to withdraw from inertia.
79. Flea effect: managers do not set limits by themselves
proposer:
point comment: goals determine life. The "flea effect" came from an interesting experiment: biologists once flung fleas on the ground at random, and it can jump more than one meter from the ground. But if a lid is placed one meter high, then the fleas will jump up and hit the lid, and repeatedly hit the lid. After a period of time, you remove the lid, and you will find that although the fleas continue to jump, they can no longer jump to more than one meter high, until the end of life.
why? The reason is very simple, they have adjusted their jump height, and adapted to this situation, no longer change. Not only for fleas, but also for people, there is a kind of life with any goal. There are many people around us who understand what they should do in life, but they can't take action. The fundamental reason is that they lack some future goals that can attract them. What kind of goal you have, what kind of life you have!
There is a real example of what happens if a person ca n’t see his goal:
In the early morning of July 4, 1952, the California coast is shrouded in dense fog. On Catalina Island, 21 miles west of the coast, a 34-year-old woman waded into the Pacific Ocean and began to swim to the California coast. If she succeeds, she is the first woman to swim across the strait. This woman is named Florence Cordwick. Prior to this, she was the first woman to swim across the English Channel from the coasts of Britain and France. That morning, the sea was freezing and her body was numb and foggy. She could hardly see the boat that escorted her. Time passed hour by hour, and millions of people watched her on TV. Her biggest problem in swimming in the past was not fatigue but the bitter water temperature. After 15 hours, she was numb by the cold sea water. She knew that she could no longer swim, so she was asked to pull her onto the boat. Her mother and coach were on another boat. They told her the coast was near and told her not to give up. But she looked towards the California coast and could see nothing but the dense fog. After dozens of minutes, people pulled her onto the boat. And the place where she took the boat was only half a mile from the California coast!
When someone told her this fact, she slowly recovered from the cold and was very frustrated. She told reporters that it was not fatigue or cold that really made her halfway, but because she could not see the target in the thick fog. It was the only time Miss Kodwick did not persevere in her life. Two months later, she successfully swam across the same strait.
Similarly, for a business to succeed, it must set a goal that it can pursue. Motorola is a typical example of success in pursuing goals.
In the American corporate world, there is a well-received award-the US National Quality Award. It symbolizes the highest honor in the American corporate world. The company that wins this award must be one that can produce the highest quality products in the country.
To win this award, Motorola has been competing since 1981. It dispatched a reconnaissance team to conduct inspections in manufacturing institutions around the world with outstanding performance. The purpose is not only to see how they do it, but also how they strive for excellence. All Motorola employees face challenges and strive to significantly reduce the error rate in their work. As a result, the product error rate was reduced by 90%, but Motorola was still not satisfied. The company has set a new goal: the pass rate of the produced phones reaches 99.997%. All Motorola employees received a wallet-sized card that marked the company's goals. The company also produced a video cassette to explain why 99% of the products are still fault-free. The video tape pointed out that if everyone in this country works with 99% quality, there will be 200,000 wrong medical prescriptions every year, not to mention 30,000 newborns, The nurse fell to the ground by mistake. And asked, is 99% quality enough for police who entrust their lives to Motorola wireless phones?
In 1988, 66 companies began competing for the US National Quality Award. Most of the participating units are actually some departments of large companies such as IBM, Kodak, HP, etc., but Motorola takes the entire company as a unit to participate in the competition, and easily wins the championship with absolute advantage.
80. Babylon's law: failure is an opportunity
author: F · Babylon, former president of the United States Dokoupil companies
the opportunity if you did not have a record of failure in a year, you would never dare to try all kinds should grasp: Reviews .
In our journey in life, opportunities are everywhere. But the opportunities are fleeting, and you ca n’t take advantage of all the preparations. This requires us to have a spirit of trial and error. Even if you prove yourself wrong in the end, you won't regret it. Because you seize the opportunity, and at least know that your previous way of seizing the opportunity does not work. It is often said that failure is the mother of success, and failure is a wealth, and the meaning is roughly here.
In the industry circle, there is a rule of Procter & Gamble that if employees do not make mistakes for three months, they will be regarded as unqualified employees. In this regard, Mr. Bai Bo, the global chairman of Procter & Gamble, explained: That means he did nothing.
American management scientist Peter Durak believes that no matter who it is, what they do, they learn from trial and error. The more mistakes they experience, the more progress they can make. This is because he can learn a lot from experience. Durak even believes that someone who has not made mistakes must never be promoted to supervisor. Japanese entrepreneur Mr. Honda also said: "Many people dream of success. But I think that success will only be achieved after repeated failures and reflections. In fact, success only represents 1% of your efforts, it can only be another 99% of the crystallization of what is called failure. "The
automobile industry is a" global "industry. In the late 1960s, Japanese companies started to develop on a large scale, starting with automobiles. But the first attempt by Japanese cars to enter the US market ended in failure. In the face of failure, they do not blame or blame each other, but unify the country, redeploy, repeatedly consider the cause of the failure, and on the basis of summing up their experience and lessons, they have redefined the provision of low fuel consumption, good quality, and Americans. The operating habits, the strategy of American cars with American style. Practice has proved that their new strategy is feasible.
IBM almost went bankrupt in 1914, and was in danger of bad luck in 1921, again experiencing a trough in the early 1990s. However, in error correction time and time again, they finally overcome the temporary difficulties. On one occasion, a senior person in charge of IBM had lost 10 million US dollars due to a serious mistake in his work. He was extremely nervous about this, thinking he would be expelled or at least be severely punished. Later, the chairman called him to notify him of the transfer, and there was still promotion. He was surprised to ask why the chairman did not expel him, but the answer he got was: If I fired you, why would you spend $ 10 million on your tuition?
In 1995, due to various reasons, Lenovo (Hong Kong) Group experienced a huge management, product and financial crisis. At the risk of being abandoned by investors, Lenovo did not panic. They calmly analyzed the cause of the problem and decisively merged Hong Kong Lenovo and Beijing Lenovo, making Lenovo as a whole overcome the difficulties. From this matter, Lenovo Chuanzhi Liu Chuanzhi realized that the Chinese mainland market should be Lenovo's main battlefield for a long time. Based on the reflection on failures and setbacks, Lenovo redeployed the strategy and layout of the Chinese local market. They finally caught up with the fast-growing express market of the Chinese PC market and became the biggest winner in China ’s rapidly growing PC market from 1996 to 2002.
For more than two decades, Microsoft has been smooth, but Gates believes that accustomed to failure is the basis of success. Therefore, Gates often hires people who have failed experience in other companies as their assistants, borrowing their experience to avoid repeating the same mistakes. The people Gates admired most were Ford founder Ford and General Motors founder Sloan. There is a picture of Ford in the Gates office, as an incentive, but also as a vigilance-Ford dreamed to make cheap and easy-to-use transportation, creating a car century, but finally insisted on the original belief and could not continue to improve. Hegemony status was replaced by the later universal. Hanging a picture of Ford is not only a respect for his popularization of the automobile, but also a reflection of his failure.
How to deal with "failure" is an unavoidable problem in the process of enterprise growth. A successful company will know the lessons of "what should be done" and "should not be done" from failure, not only to find the "mother of success" that can breed success from failure, but also from failure Learn more about what not to do and what to give up. Abandonment is a very interesting phenomenon when a company faces failure: the enterprise regards failure as wealth because failure proves that some roads cannot be reached.
