Great take by Umair Haque on the necessary paradigm shift that companies must in order to be agents of change rather than simply agents of opportunity. Author Umair Haque writes that the 21st century demands from firms of all stripes: a paradigm shift in the nature of advantage.
Here’s something you might not know. There’s enough food in the world to feed pretty much everyone. So why are more than 1 billion people — nearly 20% of the world’s population — either starving or malnourished? And why, over the last two decades, has global hunger steeply risen?
The answer has everything to do with the past — and future — of advantage.
The past of advantage was extractive and protective. The future of advantage, on the other hand, is allocative and creative.
Allocative advantage asks: are we able to match people with what makes them durably, tangibly better off — and can we do it 10x or 100x better than our rivals?
Creative advantage asks: is our strategic imagination 10x or 100x richer, faster, and deeper than our rivals?
Extractive advantage asks: how can we transfer value from stakeholders to us, 10x or 100x better than our rivals?
Protective advantage asks: are buyers and suppliers locked in to dealing with us, 10x or 100x more tightly than to rivals?
He even makes a Prezi about it.
- The New Paradigm of Advantage | Harvard Business Review | Umair Haque | 10 March 2010