Knut Haanaes: Two reasons companies fail — and how to avoid them

Why companies fails? This is a hard question to answer. In this TED video Knut Haanaes explain two critical concepts, exploration and explotation, to avoid companies to fail.

Exploration: coming up with what’s new, search, discover, new products, changing our frontiers. Exploration is risky. Long term perspective for companies.

On the other hand, Explotation: taking the knowledge we have and making good, better. Explotation /= risky. Short term perspective.

Only around 2% of firm mix exploitation and exploration.



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How to applied these two concepts? Follow:

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Mr. Haanaes has write a book about strategy. Amazon –¬†Your Strategy Needs a Strategy: How to Choose and Execute the Right Approach.