Business Strategy: Creaming

creaming

In the past week I have been sending information to a Silicon Valley consulting firm seeking a dialogue and an estimate to incorporate into my business plan for my startup.  Today I received a reply that the consulting firm was ending discussion because they did not want to do work that did not guarantee paid business.

In Peter Drucker’s book, Innovation and Entrepreneurship, such a strategy is called “creaming”.  It is a business plan that seeks to maintain the status quo while also seeking the largest profit margins.  This strategy allowed Japanese mini-mills to undermine and destroy the American steel industry and Japanese auto makers to undermine and destroy the American auto industry.  It is no surprise that Peter Drucker was fired by General Motors.  Now, we are facing the same business plans in the American information technology industry.

Today, I appealed the decision of that consulting company’s Vice President and wrote directly to the Owner.  I have pointed out Drucker’s observations.  I have also decided that if my appeal fails, I will go to information technology companies outside the United States.  I do not want to be part of the recurring American addiction to a recipe for disaster.

Advertisements

25 Bubbles: Information Technology

big_bubbles_blossom

1. Service Oriented Architecture will create more problems than it will solve

2. Relational databases have reached the end of their innovative value

3. Object oriented programming is based on a fictional ontology

4. Unified Modeling Language is incapable of abstracting systems

5. Current enterprise architectures are conceptually naive

6. The world wide web is 80 percent data slum surrounding 20 percent data excess

7. The majority of communication on the internet has no goal or purpose

8. Business uses information technology to demonstrate due diligence and then ignores it

9. Merging scientific databases is useless because they have no consistent metrics

10. The central processing unit is an inefficient and ineffective brute force antique

11. Data has never been accurately and precisely represented, understood or stored

12. We do not understand the information technology of genetics

13. We do not understand the information technology of chemistry

14. We do not understand the information technology of physics

15. Information technology is simply a popular metaphor not the reality of the universe

16. Computerized climatological models have no predictive capability at all; our understanding of climate change is hindsight

17. Weather prediction is based on satellite images not computer modeling

18. Computer scientists have no idea what consciousness is nor does anyone else

19. Business models and data models are like oil and water
20. Silicon Valley and every corporation affiliated with it will not save the world

21. Science does not have its rightful place in information technology

22. Little information technology involves design, most of it is craft

23. Calling a programmer an engineer does not make a programmer an engineer

24. Calling a programmer a designer does not make a programmer a designer

25. There is hope, but the people who got us here definitely will not get us there