Is it because they failed to innovate?

Why Business Growth Stalls

Is it because they failed to innovate?

When a business is struggling with declining sales or stagnation, the management often seeks the help of professional consultants to implement innovation strategies. They analyze the company's current status, identify weaknesses, and develop strategies to strengthen its strengths. They set KPI (Key Performance Index) values for each unit's action-specific achievement goals and introduce performance-based systems, leading to bold organizational restructuring, restructuring, and personnel changes.

These decisions, based on seemingly scientific (?) analysis, may lead to short-term performance improvements. The management may breathe a sigh of relief.

However, these technical methods do not strengthen the company's constitution. A few months later, performance may falter or decline again, leading to confusion and a lack of direction. If this situation repeats itself, employees become exhausted and accumulate "failure experiences."

This phenomenon is not limited to private companies. Many civil servants, university professors, and researchers at government-funded research institutes also complain of feeling overworked and stressed. There are many cases where life is different from what it seems.

Are they failing because they don't have cutting-edge technology?

It is said that of the 40 million jobs created in the United States since 1965, only 5-6 million were contributed by the cutting-edge sector. This means that the cutting-edge industry has not been able to fill the jobs lost by the smokestack industry. In fact, large Korean companies are cutting more than 100,000 jobs each year. It is a misconception that the leading job-creating industry in the United States is the service industry. Most jobs are not created by cutting-edge technology, but by medium-sized companies that possess mid-level technologies (Middle Technologies) and low-level technologies (Low Technologies).

If you look at the products that are currently hitting the jackpot in the market, they are not products that incorporate cutting-edge nano technology or biotechnology. They are idea products that satisfy customer inconvenience and expectations. Innovation is never proportional to the amount of investment capital.

Seven years ago, I met the president of a company located in the Sihwa Industrial Complex. The company he ran was a cutting-edge company that manufactured sensors, and it had a fab, a clean room process similar to the semiconductor manufacturing process, where wafers were brought in and subjected to exposure, etching, and cleaning processes for patterning.

The problem was that the wafer size that could be processed in the fab was small, making mass production relatively impossible. The company was also struggling due to the high electricity consumption of the clean room environment, the cost of replacing special and expensive HEPA filters that control dust, and the cost of high-purity special gases and solvents.

The biggest reason they came to me was to ask for a 10 billion won grant to primarily process large-sized wafers. In fact, there are only a few ways for SMEs to secure funding of this scale, such as loans or attracting investment. However, in cases where the financial status is not very good, it can be considered almost impossible to borrow money. It is also difficult to close the desired deal in the Korean investment climate, which is very poor.

Having a high level of technology does not guarantee success in business. On the contrary, there are many cases where they experience difficulties due to high investment and maintenance costs.

Were they too slow?

The true winner of African animals is not the lion but the antelope. This is what the number of individuals tells us. The reason for their victory is that antelopes "don't run alone." The fastest land animal on Earth is the cheetah, which runs at 110 km/h. Modern people envy the cheetah's speed, but the cheetah's greatest strength is not speed but its ability to seize opportunities and focus in the moment. "No one can just run." Isn't this the tragedy of modern people? Wisdom is the same wherever there is life.

Disposable products such as sanitary napkins and diapers, which have become deeply ingrained in our daily lives, have the characteristic that the market opens only when the income level of the people is supported. They have no choice but to die if they develop first and the market does not open. Steve Jobs' iPad was developed a few years before a Korean company called Mint Pad, but customers were not interested. And I don't even remember it. Just because you're fast doesn't mean you can get to your destination first.

Look ahead and run!

"This is a real crisis. There is no time to hesitate. Move forward!" These are the words of a large company president. Domestic newspapers were vying to echo the words of the chairman of the large company. There is no problem with a car speeding up. The ability of the person holding the steering wheel is much more important.

The Illusion of Progress and the Reality of Uncertainty: A Critical Analysis of the Human Condition

The Unseen Cliff: A Cautionary Tale from the African Savanna

Imagine the vast expanse of the African savanna, where thousands of springboks gallop across the grasslands. It is said that these antelopes instinctively begin to run even when only a few gather, driven by the primal urge to secure food first. However, their relentless pursuit of competition often leads them to overlook the impending cliff just ahead, resulting in their tragic demise.

From Agrarian Roots to the Turbulent Modern Era

From the dawn of civilization until the advent of the Industrial Revolution in the 18th century, humanity existed in an era of agriculture and animal husbandry, characterized by a slow and measured pace of life. However, the Industrial Revolution ushered in an era of mass production, followed by the IT revolution and the opening of the Chinese market, dramatically expanding the global marketplace. This sudden shift brought with it the challenges of oversupply and uncertainty, fundamentally altering the course of human existence.

Navigating the Fog of Uncertainty

In this era of limited visibility, we have succumbed to a sense of vague fear, propelling us into a headlong rush. It is said that rowing in a foggy sea can only lead you further astray from your destination. Could it be that we are blindly charging towards an undesirable future?

The Human Condition: A Shared Experience

The story of the springboks serves as a cautionary tale for humanity, highlighting the dangers of unchecked competition and the importance of critical thinking. As we navigate the complexities of the modern world, it is crucial to remain mindful of the potential pitfalls that lie ahead.

The human condition is marked by both progress and uncertainty. While we have made significant advancements in various aspects of life, we also face unprecedented challenges. It is essential to approach the future with a blend of optimism and caution, recognizing both the opportunities and potential dangers that lie ahead. By embracing critical thinking and a balanced perspective, we can navigate the uncertainties of the modern world and strive for a brighter future.