Will Instagram displace Apple as the great strategic story of the decade?

Will Instagram displace Apple as the great strategic story of the decade?

 

The most important part of the Instagram story may not be the billion dollar purchase prize, but the transformational influence that Kodak’s failure in the light of Instagram’s success may have on corporate strategy and design.

Corporate cultures are influenced by short horizons. In a recent Forbes assessment of the Kodak bankruptcy, Larry Keeley observed this condition –

At least once a week, top executives tell me that new growth businesses in their firms are intriguing and potentially important, but they simply “don’t move the needle.” Said in plain American: “The hot new thing simply cannot produce enough revenues this quarter to improve my bonus as a senior executive.” So those projects are starved of resources instead of nurtured.

And in the New York Times, Nick Bilton observes that –

Even if Polaroid or Kodak could have developed Instagram, it’s likely that the project would have been killed anyway. What would be the reaction of almost any executive presented with a business plan to save the company with an iPhone app that had no prospect for revenue?

We’ve become very interested in this concept of “stock and flow” from other influences, but highlighted by the Instagram story.

What are your experiences with this “stock and flow” pattern?

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