 |
AKSH 04: SCMHRD, Nashik
2-Day National Seminar on Let's take an example of microbes, which multiply by dividing themselves in a contained space. In the early stages of growth - say, after the first microbe divides itself into two - the microbes have lots of room for the newcomers; the number of microbes grows exponentially. Eventually, however, the space becomes so crowded that only few newcomers can survive. The growth in the number of microbes subsides. This example emphasizes the deeper meaning of the point of inflection. The identical forces that promote accelerating growth to the left of the point of inflection become disruptive obstacles on the right side. The slowdown in the growth rate, in other words, is endogenous. No outside force is necessary for the system to pass through a point of inflection: the forces of growth are destined to become their own enemy. The principle applies to many different patterns of change. "Such a point wherein people are forced to change the way they do business is termed as Strategic Inflection Point." In economics, rapid growth provokes inflation but then inflation deteriorates into stagflation. High rates of investment are essential for rapid growth, but in time new investment fills the most attractive opportunities, moves into secondary opportunities, and then outruns demand. Thus, investment converts itself into excess capacity and becomes a deadweight drag on business activity. Debt plays a similar role - stimulus on one side and burden on the other. High rates of profit, perhaps the consequence of brilliant technological innovations, attract global competition and copycats that suppress profitability and slow the process down. Today's businesses should possess the ability to decipher the happenings that would lead to an inflection point. Further these firms should be in a position to know the TIMING of the point of inflection. The ability to identify such a point of inflection complemented with the skills to tackle them would in-turn determine the success or failure of any firm. Microsoft and Intel owe their phenomenal success to their ability to identify the point of inflection and strategize accordingly. In other words, Strategic Inflection Point is the greatest opportunity for those who could effectively exploit it and it is the beginning of the end for those who lack the ability to tackle it. However painful they are, these inflection points, which serve as a gateway for tomorrow's business practices would have an inevitable role in carving their successes or failures.
Core Team, |
 |
|
|