McGrath – Running in Concrete Shoes

These “concrete shoes” are legacy assets that no longer give competitive advantage.

Rita Gnuther McGrath writes

The eroding differentiation of legacy assets can sneak up on you if your aren’t strategically alert.

AT one time they were exciting. That is why they became “legacy” — critical, so to speak. But when they lose that magic, firms have to start thinking about cutting the costs of maintaining and using them. This is what Steve Jobs did when he came back to Apple. Standardizing, simplifying and outsourcing all should be considered.

Of course, at some point, saving money is no longer the point. The asset has become obsolete. The best example of this is IT infrastructure. This is expensive stuff, and it becomes obsolete rather quickly. So what do firms do? often then do patchwork repairs and upgrades instead of recognizing that they would be better off starting over.

How do get rid of the old? That is next


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