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Pivot in Company Strategy – The Nvidia Example

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After making chips and graphics chips for personal computers for most of the almost-20 years it has been in business, Nvidia has plunged headlong into a new market; that of the mobile chip, the chip that powers tablets and mobile phones.

Why has Nvidia changed its product strategy, and therefore its market strategy, and therefore its company strategy?

Well, because it feels it has to, that’s why. It’s current market is not only slowing dramatically because computer sales are down, it is beset by competitors like AMD and Intel who now include very adequate graphic processors in their standard setup, thereby effectively cutting Nvidia out of the picture in terms of selling an add-on graphic processor to the target PC manufacturer. Nvidia, and more specifically, Nvidia’s CEO, Jen-Hsun Huang, has made a tough decision that staying in their current market will lead to slow, but certain death, and is now striking out for the frontier of mobile chips.

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Saab Turnaround 2011 – The Struggle and the Pain

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In February, I wrote a piece titled “Can Saab Be Turned Around?” in which I pondered the chances of Saab being able to do a herculean amount of work with what little they had to work with, and, in the process, turn themselves around. 

Since that time, Saab has plunged into a financial abyss, been forced to shut down production, and taken on one Chinese investment partner (Hawtie), and then been forced to abandon that deal within two weeks because the Chinese company could not get the required permissions from the Chinese government to do the deal, and then, take on another Chinese business partner (Pangda). 

What bought on the aforementioned sudden fall, you might ask? 

To put it succinctly, the CEO’s rash actions. Saab had been paying all of their suppliers late for months, trying to conserve their cash flow, more or less “stealing from Peter to pay Paul”, which in this instance meant they were trying to put more money into sales, marketing, research and development; the first two things they desperately need to do to get more cash now (by selling some cars), and from the development perspective, they need to get the next generation of the 9-3 moving along, which is their volume model, and which needs an update. 

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What Is Social CRM?

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There is a very long definition, and then there is the one I’m going to give you: 

Social CRM is the enterprise version of Web 2.0; it enables businesses to share organizational knowledge easily, it gathers information from various sources on the internet, it allows companies to become more social in terms of how information flows back and forth across the organization, and, is specifically designed to help sales teams and developmental teams. 

That was pretty painless, right? 

But, why Social CRM? Don’t businesses already have CRM systems out the wazoo? What’s wrong with those systems? 

Having led some large sales teams, I can answer that question. 

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The Real Scoop on “Authenticity” and What It Means to Your Customers

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By Red Slice on May 4, 2011Reprinted here by express permission of Red SliceType “authentic branding” into Bing and you’ll pull up 581,000 results. The advice to “be authentic” hits business owners and entrepreneurs more than gray skies hit Seattle from October to May. And, yes, I give this advice to my clients.

But what does being “authentic” really mean?

This term has been bastardized a bit in the intersection between entrepreneurship and personal development. Many coaches and consultants are advising people to “live their passion” and “live an authentic life” and to find careers and businesses that “authentically” play to their strengths. This is all great advice.

But some business owners confuse “authenticity” with “only the stuff I care about.” And that’s not really what we’re talking about from a branding perspective.

Having an authentic brand means that you deliver what you promise. Period. You do what you say, You walk your talk. When I go to Walmart, I don’t expect great service or quality fashion. I expect what they promise: low prices. That is authenticity. It has more to do with company values, service quality, product line and image. It means that if you advertise your brand as hip, sexy and cool, then your products, your company – heck, maybe even your people – need to walk that talk. It means if you are going to tout “Customer Service is our #1 Priority” that you authentically take care of your customers, go above and beyond, and empower your call center employees to do whatever it takes to solve their problems quickly and painlessly. It means that if you claim to be cheap and disposable, that you ARE cheap and disposable, because that what people want from you if you are promising that.

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Experience and the Turnaround

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While at a business conference earlier this year, a fellow I had just met mentioned to me in an offhand way that they (his business unit) had just hired a young guy out of a prestigious business school program to “fix” their business, which has been on the decline for the past three years. They hired this guy as a permanent employee, and the CEO had great hopes that he would bring the company back into the black by the end of this year, using the latest business strategies. He reports directly to the CEO, not the head of the business unit.

After all, he did have a perfect GPA at the B-School he attended.

I hope that works out for them, but I did give him my business card. “Just in the instance that the task turns out to be a little bigger than you thought”, I said.

Now for some business-style preaching:

When managing a business turnaround, there is a great deal of reliance on data, on forecasts, on costs, on efficiency, on quality, etc. And many of the things you do to fix the company are the things taught in most business schools and/or internal management training programs at large corporations.

So, any young over-achiever right out of business school with the most up-to-date academic knowledge can probably fix what’s ailing your business and get it turned around pretty quick, right?

I’m waiting…

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