This chapter describes how the five major influences examined in Parts I through V interact to drive new business creation, and how these interactions change over time to increase, maintain, or decrease the thrust on new business creation (Figure 19.1). The experience of AMP Sigcom is used for illustration.

The interactions among the five major influences at AMP Sigcom when Mike Walker was DGM are considered first. This is followed by a description of how the interactions changed to maintain and then reduce the thrust on new business creation under Walker's successor, Clay Smith.

AMP Sigcom under DGM Mike Walker

The business environment

The external business environment of AMP Sigcom was characterized by low to moderate rates of change when Walker was DGM. Only customer buying requirements were changing at more than a moderate rate: customers increasingly favored products that were more standardized and yet more versatile in application. There were few technical developments and not a great deal of competitive activity in the area of new products. Thus, the external business environment had limited influence on new business creation.

However, the internal business environment did provide an impetus for new business creation. The existing business of AMP Sigcom was maturing, and its star product (the CB connector) was in rapid decline. Consequently, successful new business creation was needed to revitalize the division.