I attended a breakfast meeting this past week with several people who had worked for Silicon Graphics, the once high-flying technology company that enabled innovations such as the dinosaurs in the movie Jurassic Park. SGI offered high-performance workstations that supported state-of-the-art graphics and animations.
Where is SGI today? Extinct–just like the dinosaurs it helped depict on the big screen. What happened?
SGI failed to understand and react to the looming market transition that eliminated the need for companies to buy their high-performance workstations. Why would a company invest in an expensive, proprietary solution when a personal computer could deliver a satisfactory result?
SGI owned their space until competitors caught up. SGI went from tech darling to an irrelevant company quite rapidly. SGI lived in denial that their world was changing. As my mentor Alan Weiss would say, SGI got caught “breathing their own exhaust.”
Is your company facing similar risk? Are your competitors about to render your solution irrelevant? This is no way to thrive.
Photo Credit: Scott Kinmartin on Flickr
Thought for the week:
Dave Gardner, Gardner & Associates Consulting http://www.gardnerandassoc.com
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