Sourced from David Murdico’s LinkedIn page.

In the article “3 Traps That Block Corporate Transformation”, Vineet Nayar discusses how companies have modernized their way of achieving success and what I found surprised me.

Nayar points out that the success recipe used to be “Innovative Ideas + Cheaper/Faster/Better Execution + Powerful Leadership”, but the current recipe is “Innovative Ideas + Delivering Unique Experiences + Enabling Leadership.” One example of the original Cheaper/Faster/Better Execution is Dell’s virtual integration, as we learned in Operations. But as information technology advanced and became an industry in its own right, companies do not have to individually invest in their own IT department and can instead outsource and specialize in their actual business. An example of this can be found in the article ‘Google Joins a Heavyweight Competition in Cloud Computing’ where Quentin Hardy introduces companies such as Google and Amazon’s role in providing corporations access to otherwise expensive computing technology. The modern role of IT in business was introduced in Performance Management and BTM, and the changes that outsourcing brought to companies was generalized in the article. I think this shift in the success recipe really clicked for me when I considered the Business Model Canvas. How I interpret the change is that Execution shifted from being a Value Proposition to something such as Key Resources or Activities and in its place, more emphasis was placed on the client-centric contents of the Value Proposition Canvas.