The Power of Paradigms in Jobs and Business: Apple, Microsoft, Google, Facebook, Walmart

In 1964, the Italian company Olivetti created a new paradigm when it invented the first personal computer. At the time, computers and the peripheral equipment to make them useful took the space of a couple of refrigerators.  The Olivetti desktop computer was far too expensive for a large consumer market.  However, the computer was a successful product for sale to businesses and universities.

Apple built on this paradigm to create the affordable personal computer.  In addition to advances in technology, the difference between the Olivetti desktop computer of the time and Apple computers is the price.  The Apple paradigm is to make the operating system and the hardware priced for a personal use.

For a period, Apple wandered from this paradigm and began to make and sell computer applications to schools.

The company suffered from this shift away from its original paradigm as a company that strictly made a personal computer company that ran on Apple OS.

Steve Jobs refocused the company on its original paradigm as an end-to-end device/OS maker.  Apple sold its educational software division.

On Monday, Aug 20, 2012, operating under the original paradigm, Apple became the most valuable company in the world.

Companies that create and sell software applications for businesses and colleges have existed since the 1950’s.  Bill Gates and Paul Allen used this paradigm to found Microsoft as a company that created software to sell to manufacturers of personal computers.  Other companies made the hardware.  Microsoft wrote the operating system.  Although now Microsoft makes devices and online services, the company is still primarily a software service company.

Google’s paradigm is collecting data and selling advertising.  Larry Page and Sergey Brin founded Google with a paradigm for creating a search engine that builds a database of user behavior and selling contextual advertising based on that user behavior.   Other manufacturers have built search engines into a website.  The Google paradigm extends the offer of payment and placement of the Google search engine and the Google advertising to any website publisher.  The relationship between Google and its millions of publishers dynamically powers the essential collection of user behavior data and Google’s placement of advertising on millions of websites.
Facebook’s paradigm is enrolling middle-income shoppers in a membership website.  Mark Zuckerberg founded Facebook with the paradigm for creating a membership site for college undergraduates.   From this paradigm, Facebook built a membership site that targeted not only more highly educated members but also a group old enough to shop and soon to become higher-income wage earners.  Then Facebook opened the site up to a general audience that rapidly grew from the college undergraduates to their friends and family members.  With a base of college-undergraduate members, Facebook’s created a meeting place for people who are middle-income shoppers.

The people who go into a company and create a new paradigm are rare.  Once a company is in place and has established ways of doing business, a person with a new paradigm creates risk to the established model.

Walmart’s paradigm is to increase profits through logistics.  Sam Walton started as an employee of a variety store.  He then purchased Ben Franklin variety stores and later founded Walmart.  He changed the paradigm of the variety stores through deep discount purchases of non-traditional items for quick resale.  He then opened large-scale deep discount stores.

However, other variety stores such as Kresge (Kmart) and Woolworth (WoolCo) had transitioned to discount stores.  These retailers bought products at lower costs through volume purchases.

Choosing locations in rural markets where rent and labor was less expensive, Walton was brilliant at cutting costs and making wise product choices.

The new paradigm that Sam Walton brought to his retail stores was to perfect logistics.  He could literally pay nothing for the products that he sold to retail customers, because Walton would receive and sell the products before having to pay the bill for the goods or store operating costs.  As Walmart moved into more competitive markets, it was through logistics that Walton could sell at lower prices than less efficient local competitors were.

Today nearly every large company focuses on demand planning and logistics. At the Walton College, University of Arkansas, there is a Depart of Supply Chain Management.  Walmart may still have the most effective supply chain system in retailing.

Before you head to the company office party, make plans.  If you have experience going to trade shows, you may find that you can use the same plans for attending an office party that you have used for attending trade shows.

Make plans to meet with people.   If you expect to see people you do not ordinarily see, call them to let them know that you would like to meet with them for a moment to thank them for their work.  If you work in demand planning and the data applications people are at the party, meet them to strengthen your relationship.  You are not at the party to talk about work, but you can use the party for an opportunity to express your appreciation.  Just take time to say thank you.

Turn off your cell phone.  If you feel pressed to check in for a call, an email, or a text during the office party, leave the party briefly to take a break to check for messages.

Lighten up and have fun.  The office party is fun.  Enjoy yourself.  If everyone wears regular office attire, wear your best office attire.  Maybe buy something new for the office party.  Buying and wearing a new blouse or new shirt may help you have more confidence.  Don’t make it flashy.  Just make it new and nice.  If a new tie or scarf gives you confidence, you should buy it as an investment in your career.

Stay on the move and mingle.  If you do not recognize someone at the party, introduce yourself.  Offer to introduce the person to other people.   If the person is new and is nervous, these people tend to remember people who took time to greet them.  Yet when you sense that a conversation slows, excuse yourself to speak with other people.

Cliques are comfortable.  People cluster in groups with other people they know.  There are three things to consider about cliques.

1. If you are spending too much time in your clique, move around.
2. If someone you do not know steps into your group of friends, introduce yourself and introduce the person to your friends.
3. If you see someone you would like to meet and the person is in a group of people speaking, wait until you see a lull in the conversation to introduce yourself.

Listen and ask questions.  People will appreciate your interest in them and their job.

Make the office party your opportunity to make contacts and strengthen relationships.  You can have a great time and show people your terrific skills to work with other people.

Internet addiction or digital addiction is so powerful that people walk into walls, fall down stairs, and crash their cars while using smartphones and tablets. People read GPS directions while driving. How can anyone see where to drive if they are reading a phone? I have been in meetings that ban cell phones and seen people use their phone to check the time when there is a clock on the wall.

Google returns 68,100,000 links for the search terms “Internet addiction.” Digital addiction is so subtle. It tells us that constant Internet connection is akin to breathing. Internet addiction creates denial.  We just connect with the Internet naturally. We just breathe naturally.

Do you ever notice that you feel irritable and distracted when you can not connect to the Internet? For some people, losing an Internet connection in a coffee shop can create the same anxiety they feel when they lose an Internet connection at home.

Can you take a walk without your smartphone?  Can you watch television without also having an Internet connection?  Has your smartphone pulled you out of a meeting demanding that you use it?

Police can spot drivers using smartphones the same way the police spot drunk drivers.  Smartphones users may drive too slowly or too fast.  Their driving speed increases and decreases.   They weave in their lane or they weave in and out of their lane.

Four ways to enjoy your day without the Internet.

1. If you are walking, take note of your surroundings.  If you are in a building, remember the colors of the walls and the floor.  Notice the people you pass and what they are wearing.  Nod to the people you pass.  If you know them, say, “Hi,” and say their name.  Remember the lighting and the type of flooring.  Remember the smells of where you are.
2. If you are in a waiting room, take a book or some magazines.  Take a notepad or legal pad to write things.  If you have some letters or notes to send, a waiting room is a place to find time to write them.
3. If you are in a shopping line, remember the color of the hair of the people around you.  Guess the age and height of the other shoppers.  You might even realize that you know someone you had not noticed.  Glance at the items in their carts.   You might remember something that you need or some new item you would like to try.
4. If you are in a meeting, pay attention to what people are saying.  Take handwritten notes.  When you have something to say, take part in the meeting.

Enjoy your time on the Internet.  Enjoy your time without the Internet.  All the things in your life are important.  Make the Internet just one of them not all of them.