In order to achieve sustainable development and avoid decline, enterprises need to open up a new road before the arrival of the peak, and the development track of this road is called the "second curve";
In the first curve, there are two key points: breakpoint and stall point (limit point)
Breakpoint: Look for the breakthrough point in the initial stage of enterprise development or the stage from 0 to 1 of startup company. Once the enterprise finds this point, it will grow itself along the growth curve and realize the growth from 1 to 10;
Limit point: when the enterprise grows along the original products, channels, technologies and markets, it will definitely reach the limit point; The limit point is inevitable for any enterprise. Professor Li Shanyou said: The limit point is also a stall point.
In the book Stall Point, "Once an enterprise reaches the stall point, only 65,438+00% of enterprises can restart the growth engine.
In 2007, the market value of Nokia was $654.38+050 billion, accounting for 40% of the global mobile phone market, which was before the peak of the whole mobile phone history and then plummeted. At the same time, in 2007, Apple launched the first generation of smart phones.
The second curve: there is a business book with the same name, The Second Curve, which reads:
"Everyone knows that the second curve is very important, but there is a key point. The second curve must start before the peak of the first curve. " In other words, when the growth of enterprises on the first curve reaches the limit point, it is too late to start the second curve!
So when do you need to start the second curve?
Professor Li Shanyou found the answer in the book of Intel CEO Grove, only paranoia can survive!
Grove mentioned a concept in his book called "strategic turning point"? Every strategic inflection point will have a ten-fold speed change, and every ten-fold speed change will lead to a strategic inflection point; "The so-called ten times speed is not the ten times speed change of your whole industry, whole enterprise and whole product, but a factor that affects the enterprise and changes the ten times speed in a short time." ?
Professor Li Shanyou named it "ten times the speed change of a single factor". In the first curve, any single factor changes ten times faster, which will lead to the appearance of the second curve.
These elements include: competition, technology, users, suppliers, complementary enterprises and operating rules;
Professor Li Shanyou further found a way to find the second curve in Charles Munger's thinking model-maximization and minimization model: single factor maximization.
That is, "focus on an element of the first curve, decompose the first element into the smallest unit, see which element can achieve ten times the growth rate, and then put all the resources on a single element to turn it into the whole of the second curve."
The book "Lean Entrepreneurship" says: "Re-focus a function of the previous product and enlarge it into a whole."
For example:
Paypal concentrated its financial payment on e-mail payment, which became an instant hit.
Ipod maximizes the music player and can only listen to songs. In addition, many functions are not available. Ipod acquired Sony music player products in the same period.
The biggest function of the leap of the second curve is to provide sustained growth for enterprises, which is obvious both in market value and within enterprises. The second curve is 10- 100 times of the first curve.