Inflection points often follow a pattern of hype, dismissal, emergence, and maturity.

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Seeing Around Corners: How to Spot Inflection Points in Business Before They Happen

How can you foresee new growth opportunities and take advantage of the next inflection point? Distilled from decades of consulting expertise on innova...

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An inflection point is a transformation of the business environment caused by factors like technological change, demographic shift, or new regulations. It changes the very fundamentals of business, destroys existing incumbents, and generates new opportunities. Being able to spot inflection points early can give an organization tremendous strategic advantage. Inflection points often follow a pattern of hype, dismissal, emergence, and maturity. Inflection points are often invisible to the boardroom. The earliest signs emerge from the edges of the organization, where it interfaces with the outside environment. It is therefore beneficial to create information flows from the edges to the top management. Employees shield leaders from unpleasant information to create a good impression. To overcome this, leaders must "get out of the building" and systematically expose themselves to the interfaces where customers engage with the organization. Delegate small teams at the front lines to make deci...

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Businesses can ensure they are not caught off-guard by inflection points by being vigilant and proactive. They should create information flows from the edges of the organization to the top management, as the earliest signs of inflection points often emerge from the interfaces with the outside environment. Leaders should also make an effort to expose themselves to these interfaces where customers engage with the organization. Additionally, delegating small teams at the front lines to make decisions can help in spotting inflection points early.

Some strategies for dealing with the emergence and maturity stages of inflection points include:

1. Early detection: Spotting inflection points early can give an organization a strategic advantage. This can be achieved by creating information flows from the edges of the organization to the top management.

2. Direct exposure: Leaders should expose themselves to the interfaces where customers engage with the organization. This can help them understand the changes in the business environment.

3. Delegation: Small teams should be delegated at the front lines to make decisions. This can help the organization adapt quickly to the changes brought about by the inflection point.

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