Strategy is about choosing what NOT to do. Strategy is not just about creating nice slides. Good companies ponder daily their business mix.
(An extract from Jeff's article)
Finally, simplification was all about reallocating resources to fund more growth and identify and solve customers' problems better. When companies are slow, it is typically a sign that their costs are in the wrong place. One of the reasons big companies fail is that they don't think they can afford something and aren't willing to free up the resources to make bold moves. We are investing heavily in making GE a digital industrial company. Last year we put about $4 billion into developing our analytics software and machine-learning capabilities and another $2 billion into building a leadership position in additive-manufacturing equipment and services—an emerging field that is going to revolutionize manufacturing. We had to run leaner in other places to make those investments.
Alex Lew, CFA