From a personal perspective, two elements are needed to accomplish something: personal motivation and personal ability. It is difficult for a person with motivation but no ability, or for a person with ability but no motivation, to succeed in something. This is my initial literal understanding of the book "Only the Paranoid Survive". All paranoia must have a mental motivation to stick to it, otherwise it will be difficult to grit one's teeth and persevere when encountering difficulties and setbacks; if there is no ability, it will be difficult to judge the correct course. Without the correct course, all paranoia will fail. It's a high-risk gamble.

Although this book talks about the opportunities, rise and fall of the Internet industry, the philosophical logic in it can benefit any company and individual. For example: six factors that affect corporate competitiveness, 10x speed power, and strategic turning points.

Six factors that affect corporate competitiveness: the strength, vitality and capabilities of existing competitors; the strength, vitality and capabilities of complementary enterprises; the strength, vitality and capabilities of corporate customers; the strength, vitality and capabilities of suppliers; Vitality and capabilities; the strength, vitality and capabilities of potential competitors; the possibility of other ways of operating business projects (ie, substitutability).

If any of the above six factors undergoes a "rapid", "crazy" or "disruptive" drastic change, it will become a 10x speed force that affects the industry. The wind rises, and then comes the typhoon; the waves come, and the violent waves follow; the competition comes, and super competition also appears. Once the power of 10x speed appears, companies will be unable to control it, just like when a typhoon comes, humans are helpless. The decline of mobile phone giants Nokia and Motorola, and the bankruptcy of Kodak are all disruptive changes in the industry caused by the emergence of 10x speed power.

When the 10x speed factor appears, the company faces a strategic turning point. One is decline and death; the other is rebirth.

Faced with the power of 10 times the speed, many companies were unable to withstand the typhoon of the trend, and went bankrupt and scattered. There are two points of view worth sharing:

One is to comply with human nature. As described in the book, "Business prosperity breeds the seeds of self-destruction. The more successful you are, the more people will covet you. They will steal your business piece by piece until there is nothing left." "The same thing may not be a big deal for an unknown small business, but it is a big deal for a company with global influence. There will be a large number of competitors and media swarming in, trying their best. Anything to weaken you. Here is a microcosm of human nature: jealousy, greed, selfishness, hypocrisy. Only by understanding human nature, understanding human nature, and complying with human nature can we better control trends and enterprises. After all, enterprises and the competitive environment are composed of people.

Another is: the boss is always the last one to know the truth. If the boss is far away from the market, or the company does not have an effective, reasonable, true, objective, and efficient way to deliver information, then all decisions may deviate from the course. If the person directing the guns cannot hear the sound of the guns, how can they aim accurately and hit the target? ?

From an enterprise level, when leading enterprises in the industry face the power of 10 times the speed, due to factors such as enterprise experience and sunk costs, the more once glorious enterprises are the last to adapt to changes. The last one to succumb to 10 times the speed, most of them lost more miserably. This best illustrates the truth that "success is the greatest failure."

Companies that experience a strategic turning point and begin to decline rarely recover.

When faced with 10x speed forces, some companies are able to discern industry trends, prepare for transformation in advance, and accurately find opportunities that arise from dangers during crises. Thereby achieving a strategic turning point leap instead of dying. Intel's transformation from memory to microprocessors is a good example. Otherwise, the Intel brand may not exist today.

Companies that have successfully experienced strategic turning points have several characteristics: they have a keen insight into the industry and can smell the dangers of the industry; they prepare in advance when the company still has profitability and a large amount of cash flow. , be fully prepared; when transforming, do not hesitate, make decisive decisions, and focus all financial, material, and human resources on transformation. Only paranoia can survive, and this must be fully reflected. The strategic turning point is the Valley of Death for an enterprise. It is the greatest hardship that an enterprise needs to go through. Enterprises that have experienced the Valley of Death have stronger explosive power, endurance, and competitiveness. Only enterprises that have experienced the Valley of Death several times can enter Among the world's great companies.

Let us review the classic in the book again: "Sooner or later, your company will reach a strategic turning point, and the foundation of the company will undergo drastic changes in an instant. Technology, rules, competitive environment, industry form... everything... Everything has changed. If left unchecked, strategic turning points can be destructive enough to destroy a good company. However, strategic turning points do not always lead to disaster, and some companies may use this opportunity to leap to new heights - if managers. If you can be keenly aware of the change in the direction of the wind and take the correct action in time. ”

2019.8.31