23 July Optimal Market Standing (...resistance...)

[Paul Terlemezian]

Drucker's assertion is that being in a dominant position without competition can be a deterrent to innovation.

 

Within our industry we oftern have an external provider with "one" large customer.

The internal provider has "one" large customer as well.

 

The external provider may choose to innovate with its smaller clients and then bring the successful innovations to its large customer.

 

Similarly the internal provider may seek smaller projects where it can innovate and then refine these experiments prior to implementing them on a broader scale.

 

What other opportunities for innovation does a dominant position offer?

[Paul Terlemezian]

Drucker also asserts that a way to assure innovation is to focus on market share vs. market dominance.

Would an internal provider be more innovative if it set a goal of having a defined percent of internal training being provided by external providers?

While there is a cost associated with this there are some likely benefits? What are the costs? What are the benefits?

Would an external provider be more innovative if it set a goal of having a defined percent of its offerings be reselling of other's capabilities?

What costs and benefits would the external provide experience?