Site Map Contact UsHome

Two Routes to Resilience

By Clark G. Gilbert, Matthew J. Eyring, Richard N. Foster

TwoRoutesResilience

Download a complimentary copy of the article here.

Sooner or later, most companies will need to reinvent themselves in response to disruptive market shifts, technologies, or start-ups. But can a new business model quickly replace all the revenue an incumbent has lost to market upheaval? Only in rare instances, say the authors. That's why they propose that companies under assault pursue two distinct but parallel efforts: "Transformation A" should reposition the core business, adapting it to the altered environment. "Transformation B" should launch a separate, disruptive business that will be the source of future growth. That approach allows the company to realize the most value from its current assets and advantages, while giving the new initiative the time it needs to grow. This article walks readers through the dual transformations of three companies that were facing massive disruption: the Deseret News, which was losing advertising to online upstarts; Xerox, whose copier business had been eroded by Asian rivals; and Barnes & Noble, which was threatened by e-books. In each instance, a key to making the dual transformations work was the establishment of a "capabilities exchange," which allowed both efforts to share resources without interfering with the mission or operations of either. The results to date are promising: At all three firms, the core business is back on track, and the innovative initiative is demonstrating strong growth.

Read this article to learn:

  • How to develop and manage two separate transformation efforts
  • The five-step process to establishing a "capabilities exchange," which allows both efforts to share resources without interfering with the mission or operations of either
  • Real-life dual transformation stories from three companies that were facing massive disruption: the Deseret News, Xerox, and Barnes & Nobles

 


Related Insights

An Impact Story from Innosight:

P&G's New Growth Factory - How Innosight’s innovation tools helped the world’s largest consumer products firm achieve its growth goals.

Read More

Innosight in Harvard Business Review:

How to Jump-Start the Clean-Tech Economy

Read more

Innosight has developed a methodology to understand the total problem and to think through business models in a systematic way.

Omar Ishrak
CEO, Medtronic

Grow with Innosight

Interested in learning how Innosight can help your organization?

Contact us

Meet our team and explore what it's like to work at Innosight.

Careers