Strategic misjudgment and internal consumption are the two killers of the new business.

Editor’s note: This article comes from WeChat public account “

In human history, there are three major wealth creation systems.

The first is the agricultural system. The core of the agricultural system is to create wealth through the use of land and photosynthesis. At this stage, all people need are simple tools and do not need to process a large amount of information. But the limitation is also obvious, that is, the output basically depends on the size of the land, and the output efficiency is relatively low.

The second is the industrial system. The industrial age is the second curve of wealth creation. It uses chemical energy and uses power transmission to integrate human skills on a large scale. In order to better integrate into the industrial society, we need to learn professional skills in universities and then participate in the division of labor. Essentially, the industrial age relied on fossil energy and human skills.
The third is information and knowledge systems. As you can see from the figure, in this era, the speed of wealth creation far exceeds the growth rate of the industrial era. You can review the top 10 companies in the world 20 years ago, basically oil and automobile companies. Now, high-market companies have basically become high-tech companies. Essentially, in this era, the core driving force for wealth creation is Extracting knowledge from information through information and digitization, using knowledge to continuously reorganize existing resources in human society, and ultimately realize the rapid creation of wealth .
 

Lu Qi: There is a company that chose the right strategy but died of internal consumption
What exactly is digital? What does the digital wave mean to us?

Digitalization is large-scale information processing.

In the digital wave, the behaviors, models, and ecology of individuals and businesses will be reshaped. As an enterprise, as an employee in an enterprise, we must have a very clear understanding of this. How to get better development under this wave? How to seize more opportunities for innovation? How to solve the dilemma that enterprises may face? This is something everyone needs to think about.

Under the digital wave , How can I turn on the second curve?

When the start-ups reach a certain scale, how can they maintain rapid growth? The core is to find the second curve of the enterprise. After the excellent companies enter the growth stage, as the first curve business matures, they will invest some resources to incubate the second business.
Lu Qi: There is a company that chose the right strategy but died of internal consumption

As the above picture shows, the current business is doing well, and the company is also investing resources to develop the future track. These two There are no problems in this part, and everything is good. It is precisely the middle part that is most prone to problems: how will the future business of the incubation graduate successfully? How to really break a track? How to make the second curve grow? ^

The second curve of an enterprise cannot grow up. The problem is often in two aspects. One is that the strategic judgment is wrong, and the other is that the internal consumption of the enterprise is serious.

So, what should a company in the growth stage do strategically?

1. Judging the direction

Which direction does my second curve go, the core of my judgment is to understand the market trend deeply. Among them, to judge the future of technology and the future of products, relatively speaking, most people can see the development trend of technology, the difficult thing is to judge the future product form.

2. Judging the timing Jobs once said that to judge the future, every company will do the same, but this is the most difficult . Apple was never the first to make a product in a certain field. For example, it was not the first to make a music player, it was not the first to make a mobile phone, and it was not the first to make a tablet. How did Apple do it?
 

There is a core law that can help you judge the timing. For any new industry driven by technology, the road it will always follow is a curve: The distribution of structure with society , Age distribution, income distribution, and mentality are closely related. Young people are always the most open, while older people tend to be conservative.

Therefore, there are always some people in the early days. As long as they are new, they will actively try no matter how bad the product is. > “, which is a tech fanatic. After them, there will be a second group of people to use the product, they are “ Early Adopters “, these people are visionary people, generally business leaders By. However, there is a huge gap between these two groups of people.
Lu Qi: There is a company that chose the right strategy but died of internal consumption