The Second Growth Curve: How AI is Transforming Business Survival Strategies
🔍 What Is the “Second Growth Curve”?
The second growth curve refers to a strategic pivot or innovation that a company must undertake before its current business enters decline. It’s about anticipating stagnation or saturation and proactively launching a new product, service, or business model to sustain growth.
📈 Why Is It Important?
The speaker, Dr. Lau Cher Han, emphasizes that:
- Every product or business has a life cycle: introduction, growth, maturity, and decline.
- If a company fails to innovate before decline, it risks becoming obsolete.
- The second curve is not just a backup—it often challenges or cannibalizes the first curve.
🧠 Key Principles Behind the Second Growth Curve
1. Disruption Is Necessary
- The second curve often threatens the first curve.
- Example: Netflix moved from DVD rentals to streaming, even though DVD rentals were still profitable.
- This shift required “cutting off one arm to save the body”—a metaphor for sacrificing part of the current business to ensure long-term survival.
2. Timing Is Critical
- You must launch the second curve during the maturity phase, before the decline begins.
- Companies like Nokia and Kodak failed because they reacted too late.
3. Innovation Doesn’t Have to Be Radical
- In Malaysia, disruptive innovation isn’t always necessary due to lower venture capital activity.
- Instead, incremental innovation or repurposing existing strengths can be enough.
🧪 Real-Life Examples from the Talk
🌍 International Example: Netflix
- First Curve: DVD rental by mail.
- Second Curve: Streaming platform.
- Netflix disrupted its own profitable DVD business to embrace streaming, which later became its core.
🇲🇾 Local Example: Dr. Lau’s Company
- First Curve: Full-stack programming education.
- Second Curve: Data science and analytics.
- Later pivoted again to AI tools and automation, especially post-ChatGPT era.
Each pivot was made before the previous service became irrelevant, ensuring continued relevance and growth.
💡 How to Find Your Second Growth Curve
Dr. Lau suggests:
- Understand your current product’s life cycle.
- Use data to identify emerging trends (e.g., Exploding Topics, Google Analytics).
- Be willing to disrupt your own business.
- Focus on core strengths that competitors can’t easily replicate.
- Design a flywheel: customer acquisition → service delivery → feedback → refinement.
🧭 Strategic Mindset Required
- You don’t need to be overly creative.
- You do need courage to pivot and possibly abandon parts of your current business.
- The second curve is about long-term survival, not short-term comfort.
🧠 Q&A Highlights from “AI for Boss” Webinar
🔍 Automation & AI Tools
- Can automation replace employees?
- Not necessarily to fire people, but to reduce repetitive tasks and hiring needs. It improves productivity and allows existing staff to work more efficiently.
- Which accounting software can connect with automation tools like M8N?
- Known compatible software includes SQL, AutoCount, QnE, and Xero (via API).
- Can chatbots handle customer inquiries beyond FAQs?
- Yes, depending on how you design the chatbot. It can either respond with humor, ask for contact details, or escalate to human support.
- Can chatbots provide quotations for services with variable pricing?
- Yes, but they require training and customization to understand your service packages.
📊 Data & Analytics
- Which is better: Google Analytics or Google Trends?
- Google Analytics is preferred for real-time, site-specific data. It helps track user behavior, conversion rates, and sales insights.
- Can I analyze competitor websites?
- Yes, using tools like SimilarWeb, SEMrush, and UberSuggest. These provide traffic data, keyword performance, and market insights.
- How do I identify industry trends?
- Use tools like Exploding Topics, Google Keyword Planner, and UberSuggest to track trending keywords and topics.
🧰 AI Tools & Learning
- Which free AI tools can help write resumes?
- Any AI writing tool (e.g., ChatGPT, Claude, Gemini) can assist with resume writing, grammar correction, and formatting.
- Will AI tools I learn today become outdated soon?
- Tools may change, but foundational skills like prompting and understanding AI workflows remain valuable.
- Is there a certified course for M8N automation?
- Yes, there are certification programs available in English and potentially in Chinese if demand is sufficient.
- What’s the difference between the AI Bootcamp and AI Agent Training?
- Bootcamp focuses on business strategy and practical application, while Agent Training is more technical and tool-specific.
🧭 Business Strategy & Second Curve
- Do essential industries (e.g., food, agriculture) need a second curve?
- Yes. Even staple industries face disruption from health trends, environmental concerns, and technological shifts.
- How do I stay valuable in the AI era?
- Focus on five pillars: content creation, data analysis, automation, talent management, and strategic planning.
@lerlerchan by LerLer Chan
Ler Travel Diary is using
Web Hosting and n8n on Hostinger
To be a smart saver, check out
ShopBack for more information.
Enjoy SGD5 discount voucher on
Klook with code 53E7UD
Need discount for your travels? Check out our travel deals page.