What are the consequences of a misjudgment

II Systems Blog

Today I would like to describe an example of misjudgments and their consequences. A sad example of the demise of a successful company is Nokia. Nokia Corporation was formed in 1967 through the merger of the Nokia Company - the original paper mill - with the Finnish Rubber Works and the Finnish Cable Works.

At the time, management had a vision that there was a lot more potential in telecommunications. This change led Nokia to become the most successful company in the field of mobile phone manufacturers and from 1998 to 2011 it was the world's largest mobile phone manufacturer.

Apparently they felt very safe in management and believed that customers didn't want to do anything other than make a phone call with their mobile phones. From Nokia's point of view, such an assumption was absolutely correct. In retrospect, however, this way of thinking sealed the company's downfall. Nokia was (too) successful and unable to initiate the necessary changes.

I would like to describe what happened using the change formula (see also blog post "Change motivation mathematically described")

U: Dissatisfaction / suffering

With a profit of 7.2 billion euros in 2007, there was no suffering at all.

Z: goal / vision

As a market leader, you already felt like a visionary. Who should question Nokia's vision?

W: (practicable) way

The way seemed clear to everyone. Everyone on earth wants to make a phone call - mobile. Hence, Nokia cell phones were needed.

K: cost / energy

Such a way of thinking led to the fact that one did not want to exert oneself further and did not invest any costs or energy in the new mobile touchphones, in internet service, photo technology etc.

We all know how the story ended.

Apple, on the other hand, recognized the potential early on and saw the mobile phone differently. Steve Jobs developed products that everyone wanted to have but that didn't exist at the time. With the I-Phone, Apple has broken new ground.

Steve Jobs was ridiculed and fought when he presented the iPhone. The management of Nokia was certain (routine) that customers only want to make calls with their mobile phones.

Steve Jobs once described this very aptly: “I didn't even know that customers only wanted to make calls with their cell phones. I was of the opinion that customers also want to listen to music, want to take pictures, etc. So I just developed the iPhone. "

Unfortunately, I experience an attitude that Nokia had at the time, even in many successful practices. The opinion here is that customers (patients) only expect good medical service. Patient service is nice to have, but not that important. This is basically all marketing that you don't need.

This is an extremely dangerous way of thinking and precisely the reason that we at iie-systems want to wake up our customers in good time.

If you do not develop your company Praxis in the direction of the Internet today, you do so at your own risk!