Don't Bet on Preventing a Tornado
Distribute bets at the beginning of an open systems contest
The Don't Bet on Preventing a Tornado framework emphasizes the importance of distributing bets at the beginning of an open systems contest. This involves placing multiple bets and shifting them away from the losers towards the emerging winner.
- Distribute bets at the beginning of an open systems contest
- Place multiple bets and shift them away from the losers towards the emerging winner
- Focus on creating a market where multiple options are available
- Distribute Bets at the Beginning of an Open Systems ContestDistribute bets at the beginning of an open systems contest, rather than trying to prevent a tornado. This involves placing multiple bets and shifting them away from the losers towards the emerging winner.Pro tipFocus on distributing bets at the beginning of an open systems contest, rather than trying to prevent a tornado.WarningBe careful not to place too many bets, as this can lead to decreased focus and increased costs.
Lotus and WordPerfect
Lotus and WordPerfect's decision to bet on OS/2 is an example of betting on preventing a tornado. This led to failure, as the market ultimately shifted towards Windows.
OutcomeLotus and WordPerfect's decision to bet on OS/2 was a failure, resulting in the loss of market share.
Betting on Preventing a Tornado
Betting on preventing a tornado can lead to failure, as it is impossible to control the market. Instead, companies should focus on distributing bets at the beginning of an open systems contest.
The concept of not betting on preventing a tornado was first introduced by Geoffrey A. Moore in his book 'Inside the Tornado'. Moore argues that companies should distribute bets at the beginning of an open systems contest, rather than trying to prevent a tornado.
Source · BOOK
Inside the Tornado: Marketing Strategies From Silicon Valley's Cutting Edge