Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Monday, July 21, 2014

Lessons From a Fighter Pilot for Businesses and Leaders

A fighter pilot thrives on the threshold of uncertainty and risk. In combat, a combination of factors makes even the best-equipped pilot vulnerable. A combination of intelligence, execution, and feedback enable a fighter pilot engage or disengage an enemy.
Coincidentally, these are the same things that are needed by businesses or leaders who also thrive on uncertainty and risk, in situations where decisions need to be made quickly and correctly, and executed nimbly.
Let's look at one concept that has enabled the fighter pilots gain advantage in challenging situations.

The Observe, Orient, Decide, and Act (OODA) Loop

If I didn't tell you that this term originated in the US military, you could mistake it for business jargon! And, you will be mostly right. The term, which originated in the US Air Force, has been used in other fields outside of military, and very rightly so. You might be amused to know the concept has been used in F-16 and later fighter jets since the 1970s.
And, it is not much different from business methodologies we use today, or any such tools of decision-making and execution.
The four component of the OODA loop and its analogy in business are:
  • Observe: Collect data about the enemy aircraft via various mechanisms and tools. Very similar to the intelligence we gather in businesses.
  • Orient: Interpret the data as it pertains to the pilot, and all the experience and perspective the pilot has. This is very critical since misreading of the data could mean engaging the enemy or not. In business, we tend to collect a lot of "noise" data. But interpretation of this data could open up choices we need to make. Misreading the data, based on experience and perspective (or lack thereof) could send the business in a wrong direction.
  • Decide: Based on the intelligence and orientation, decide which of the choices the pilot needs to make - engage, flee, keep observing, anticipate, and so on. Not so different in business world.
  • Act. Take the chosen path.
The process doesn't stop when the pilot has acted. The loop iterates again based on new intelligence from the altered situation.

Timing is key, but not everything

John Boyd, who developed the OODA loop, was nicknamed "Forty Second Boyd" for his skill in gaining advantage in air combat in a short time.Timing is critical in military situations, given that your life depends on not only the decision and action, but how quickly you can make the decision and act upon it. However, you can't sacrifice other aspects for timing, else you will risk getting into a worse situation than when you started.
By rule, all startup companies start from a position of disadvantage, and need to gain advantage by not only the right decisions, but act upon it, and sustain that - all in a short time. The one way to do it, learning from OODA loop, is to create a constant feedback, decision, and action cycle, adapting every time there is a change in situation.
This also can be applied to almost any aspect of business, where agility and adaptability is key.

The human factor

While the entire cycle can be automated, remember that it is finally humans that decide to act. Like a fighter pilot who has many tools at his/her disposal, the experience and perspective, and finally the ability to decide and act can't be ignored. And, while at it, we can refine our data collection mechanisms to weed out data that's not relevant or contextual.

Thursday, September 12, 2013

Why Apple discontinued iPhone 5


(Original article by: Ali Rizvi at homeshopping.pk)
Seeing how this topic has gotten a reaction from the public, I would like to explain by giving reason as to why Apple chose to discontinue its 2012 flagship phone.
The perception, for a long time, even before we had a name for the iPhone 5c was that it would be a budget phone and therefore of lower quality than the iPhone 5s. The rumors kept building up and people started thinking that a budget iPhone was definitely going to happen. As rumors progressed further, we started seeing signs of the budget iPhone with the images of the plastic shell around the body being released. Of course, some would have been fake but still the perception was being made since a very long time.
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In the past few days, leaked pictures showed the packaging, colour variants and more concrete information regarding the device and people were thinking that it would cost quite low. However, when the prices were released, a lot of people were shocked and are using the social media to vent their anger.
iphone5c_boxes_Hajek-380x285

Well, one of the main reasons that Apple discontinued the iPhone 5 is that the “budget iPhone” as it was labelled will cost a whopping $549 (PKR 56,000) and $649 (PKR 66,000) for the 16gb and 32gb model respectively. This wedges the price right below that of the iPhone 5S and offers the same specifications as the iPhone 5. This would have caused problems when people would have decided to choose between the iPhone 5 and 5c since the release of the 5s would have meant that Apple would have to lower the price of the iPhone 5.
Now, why would anyone buy a phone which was labelled a cheap phone made with plastic over a phone of premium quality with the same specifications and price like the iPhone 5? This might have been the main reason for the discontinuing decision as it would have affected the sales of the iPhone 5c which Apple would never want since it is their latest phone.
The iPhone 4s is still hanging in there because Apple could have reduced its price even further leading to an increase in sales. A very calculated decision taken by the company which the consumers wouldn’t have minded.
But, would you really buy the iPhone 5c over the iPhone 5 or you'll go for iPhone 5s? Let us know in the comments.