Extraction mindset Vs. Value creation mindset

When money is the primary focus: - Innovation stagnates since the focus is on extracting more value from existing solutions - Customer relationships become transactional - Employees lose motivation since they're not connected to a meaningful purpose - Competitors who genuinely care about solving problems will eventually win When problem-solving is primary: - Innovation flourishes because you're genuinely trying to serve customers better - Strong customer loyalty develops as they feel truly understood and served - Employees are motivated by meaningful work - Money flows naturally as a byproduct of creating real value Even seemingly invincible market leaders can fall when they shift from problem-solving to value extraction. Prominent examples that come to mind are IBM, Kodak, Nokia. Do you have any other examples? Amazon is currently showing this shift in mindset but I don't think it's inevitable with scale. Toyota is a great example: - Consistently focused on quality and efficiency - Kaizen philosophy of continuous improvement - Even when dominant, kept solving problems better - Maintained respect for customers and processes SO WHAT IS HAPPENING? B2B companies often maintain their problem-solving focus because: - Their customers are sophisticated and well-informed - Switching costs are high, but possible - Long-term relationships matter more - Poor value is quickly noticed and acted upon - Word spreads fast in professional networks B2C companies often drift because: - They start seeing customers as "captive audiences" - Individual consumer power seems limited - Marketing can temporarily mask declining value - Network effects and switching costs create complacency WHAT CAN YOU DO? Mission Focus: - Define your business in terms of problems solved, not money made - Make problem-solving the core metric for success - Let revenue be a measurement of problem-solving effectiveness Customer Understanding: - Continuously engage with customers to understand their evolving problems - Focus on solving problems better, not extracting more money from existing solutions - Build long-term relationships based on value creation Innovation Strategy: - Invest in R&D that improves problem-solving capability (even if that's a free tutorial on YouTube) - Don't let current revenue streams blind you to better solutions - Stay alert to new ways to solve customer problems Business Culture: - Build a team motivated by solving problems - Reward innovation and customer satisfaction - Create metrics that measure problem-solving effectiveness, not just revenue Growth Approach: - Scale by solving more problems or solving them better - Avoid the temptation to maximize short-term profits at the expense of customer value - Study the market for signs of customer problems being underserved Let me know your thoughts and let's have a productive discussion!