Mapping G Moore’s “Darwin” to Telecomm Semi’s in the ’00’s

The reception to my post on mapping PMCS of the ’90s into Moore’s latest model is a mystery. It had a very high number of hits ( relative to my site), but I received very few comments. (note. most comments come via e-mail or in person). If I received any they were of the “snarky” variety … like “what happened in the 2000’s :razz:” … or … “you guys suck”

Recently I’ve been preparing some lectures which have sent me in the Moore direction for material. Having revisited “Darwin” I’m taking the bait and tackling the innovation strategies for Telecomm Semi in the ’00’s.

I agree with Moore that companies are innovating like mad and they aren’t seeing good results come from it. Sadly from the Moore “Dealing With Darwin” perspective the Telecomm Semi sector provides far too much poster material for his examples of “Innovation strategies gone bad” or “What not do.”

* Business Architectures *

The biggest Moore “Sin” that most Telecomm Semi vendors have been committing is “Changing who they are.” It’s Complex System model companies trying to switch to Volume Operations model companies. Given the success of consumer markets in the past decade it is easy to see the logic behind this desire. Unfortunately, Moore is rather specific on what happens if a company tries this — IT IS MET WITH CERTAIN DEATH. (kind of a big sin in his books :evil:)

My experience resonates with Moore’s view that each business model is like the yin & yang. What works in one fails in the other. I left PMCS for a few years to work in a volume operations focussed shop and it was an excruciatingly painful experience! I was always doing the wrong thing. My experience as a complex system model employee was a severe impediment. Later I moved to the complex systems customer segment and I immediately began doing the right things. It’s for real.

* Drinking The Kool-Aid *

The other major Moore “Sin” that Telecomm Semi vendors are committing is trying to innovate in declining markets. There are loads of examples of “not exiting declining markets”, “not accepting that markets are declining”, and “trying to grow in declining markets”. Many may comment that all the companies in this sector have slowed down R&D in these segments, but almost no one has exited.

What’s curious is that this book is copyright 2005 and the Cisco Product Portfolio example on page 21 shows most Telecomm Semi sector products in really bad spots. ( ie Kool Aid is available in all meeting rooms. )

* Getting On With Renewal *

On the good news front, most Telecomm Semi vendors understand that the “Purpose Built IP Network” requires them to enter new categories. They’ve got to renew – Organically or via Acquisition. The acquision renewal path seems to have had the most success, so far. I’ve commented on this here.

* PMCS Specific `00’s *

It is very good news that PMCS is back to being a category leader in two growing markets ( FTTH and Storage). It is also cool that these segments are consistent with the IP Stack Model that the Internet is rallying around. These sectors have got a solid framework to stand on.

As for what happened from 2000 to date. Suffice it to say that The Fire of Telecomm Semi market began to fade with the final Saturn meeting in the Fall of 2000. This was followed by some very dark years.