Chapter 2: Learning about Markets, Using Market Knowledge - George Day
Superior ability to learn about markets has become vital
3 Trends explain why
- Changes in complexity of markets – shorter life cycles, cannot react
- Exponential growth in amount of market data – realtionship databases
- Need for share organizational assumptions for strategy development
Core Compentency Laws
- It is unattainable by money alone
- It takes time to cultivate
- It is difficult to imitate
- It is capable of multple uses
- It is enhanced by repeated use
Market Driven Learning Process
Must strive to understand what is causing the changes
The Learning Organization
- Is serious about trial-and-error experimentation
- Needs a “inquiry center” an entity and attitude about how to reconcile the voice of the market
- Uses informed imitation of competitors by understand why their competitor succeeded and improving upon it
One attribute of a company is its customer focus versus competitor focus
Fear-of-failure syndrom – subverts trial-and-error experimentation
Security blanket reseach studies – studies done after the decision is made
Beaware of incomplete mental models and market amnesia
How to organizationally learn about markets
· Bring mental models into the open
· Use information technology to enhance learning
· Activate sensors at the point of customer contact
· Facillitate knowledge transfer
· Value continuity