One of the potential errors was mistaking market momentum for leadership. The Concern Since EDS was flush with financial resources the attitude that they could out spend the competition might develop. Past successful business practices had become ingrained in the corporate culture and could potentially be impossible to change. If you have more builders than architects, the organization begins to lack vision. The sense of urgency to change was not evident.
Failure drives change.
The more difficult challenge is to change while a company is very successful. Since their past business practices have assisted in their success, there will be a natural resistance to change. The risk exists that the industry might change faster than the firm. The lack of urgency and the inability to change, or escape their past, had more to do with the mental models of the management team than the evolution of technology, the competition, or the market place. EDS management further concluded that the ability to adapt, grow, innovate and learn were sustainable capabilities and that perhaps, these competencies may be the most important sustainable competitive advantages of the company.