Intel's mistake; disruption speeding toward the trucking industry; new IoT clothes for the US textile industry; business planning vs experimentation; how new markets trigger new business models.
We know that Intel plans 10,000 layoffs this year. The mistake that likely led to this result was a 2005 decision by Intel in which the company turned down the opportunity to provide the chip for Apple's iPhone. Instead, Intel put all of its chips on the then-booming PC market. The company is still making billion-dollar profits on the PC market, but its growth has stalled. Intel's effort to shift to the new reality lead the company to pare 11% of its workforce.
This picture of the impact self-driving trucks could have on the US economy is particularly ugly for truck drivers. Although most truck drivers currently earn a middle-class $40,000 income, many aren't college-educated and don't have relevant work skills for today's economy. Research predicts the trucking industry will drive off a cliff between 2020 and 2030. "Truck driver" is the most common job in more than half of US states, comprising 3 million workers. This article states the problem, but offers no potential solution to the likely human "collateral damage" that will result from the self-driving disruption.
The US textile industry has shrunk like a wool sweater fresh from a hot dryer. But it's not totally dead. Some of the remaining textile companies have joined the nascent Internet of Things economy. For example, New Hampshire's Warwick Mill is working with MIT and the Defense Department to produce specialized fabrics that weave in ceramics, metals, and fiberglass. These high-value fabrics are used in products like safety gloves for industrial workers and body armor for the police and military. Producing them in quantity will also produce more jobs.
From Alexander Osterwalder's Strategyzer comes a simple illustration explaining the difference between experimentation and business planning. Actually, it's 11 simple images. Together, they show the difference between executing known and validated value propositions differs from the search and discovery process for testing assumptions about new business models.
The opportunity to provide value to an entirely new market can often be the impetus for disruptive innovation. Such is the case for financial planning firms marketing financial planning to Millennials. This demographic's values and financial circumstances have required not just a shift in positioning, but the creation of entire new products — and in some cases, entire new business models.
Image by katnothernightsman via Flickr.