Two keys here:
A bold vision with measurable goals helps to align the organization and attract great talent.
Change will only stick when all team members help to define the new organization.
Organizing for simplicity: An inside look at Humana’s digital transformation
For a better understanding on transforming your business in the digital age, read David Rogers’ latest book.
Great piece from Stratechery on Unilever’s acquisition of Dollar Shave Club. Thompson makes the case that the creation of Amazon Web Services and YouTube a decade ago created the opportunity for Dollar Shave Club to disrupt a giant like Gillette. I find it just as interesting to read about how P&G came (and tries to remain) in the dominant position.
Probably the most important fact when it comes to analyzing Unilever’s purchase of Dollar Shave Club is the $1 billion price: in the world of consumer packaged goods (CPG) it is shockingly low. After all, only eleven years ago Procter & Gamble (P&G) bought Gillette, the market leader in shaving,for a staggering $57 billion.
To be sure Gillette is still dominant — the brand controls 70 percent of the global blades and razors market — but there is little question that Dollar Shave Club is a much better deal, in every sense of the word. Understanding why Dollar Shave Club was cheap means understanding why its blades are cheap, and understanding that means understanding just how precarious the position of P&G specifically and incumbents generally are in the emerging Internet economy.
It’s true that free samples help consumers learn more about products, and that they make retail environments more appealing. But samples are operating on a more subconscious level as well. “Reciprocity is a very, very strong instinct,” says Dan Ariely, a behavioral economist at Duke University. “If somebody does something for you”—such as giving you a quarter of a ravioli on a piece of wax paper—“you really feel a rather surprisingly strong obligation to do something back for them.”
Ariely adds that free samples can make forgotten cravings become more salient. “What samples do is they give you a particular desire for something,” he says. “If I gave you a tiny bit of chocolate, all of a sudden it would remind you about the exact taste of chocolate and would increase your craving.”