Geoffrey Moore, best selling author and a Managing Director at TCG Advisors, talks about how inertia overrides innovation in established enterprises.
Moore advises that since innovation begets inertia, there is a need for companies to recycle their resources with respect to both innovation and inertia to differentiate themselves in a competitively driven market.
Moore focuses on innovation and discusses the different stages in the market maturity life cycle.
Moore elaborates on the four different innovation zones: product leadership, operational excellence, customer intimacy and value renewal. These zones make up the market maturity life cycle.
Moore looks at the different classes of innovation that comprise the product leadership zone: disruptive, application, product and platform innovation. These innovation zones are driven by the technology adoption life cycle and are very R&D intensive and high-risk.
Moore explains the concept of fractalization of markets when markets get out of the growth phase.
Moore delves into the "customer intimacy zone" to explain the innovations that comprise this zone: line extension, enhancement, marketing,and experiential innovations
Moore talks about the operational excellence zone and its innovations: value engineering, process, integration and business model innovation.
Moore uses McKinsey's 7S's model to attack the problem of inertia in companies
Moore uses the core/context analysis framework to discuss how to overcome inertia in strategy and structure.
Moore believes inertia is the legacy of successful innovation and the two must be managed as a single system in a business enterprise.