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Clockspeed chapter 2

Clockspeed chapter 2



charles fine clockspeed

charles fine clockspeed



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    Clockspeed chapter 2 Clockspeed chapter 2 Presentation Transcript

    • Chapter 2
      What Fruit Flies Teach Us About Business
    • Submetricsto Measure Clockspeed
      Each industry evolves at a different rate depending on the following:
      Process: measured by capital equipment obsolescence rates
      Product: measured by rates of new product introduction or intervals between new product generations
      Organizational: measured by rates of change in organizational structures
    • Submetricsto Measure Clockspeed
      Assets that are not explicitly process, product, or organizational
      distribution channels
      film industry – from small local theatres to regional megaplexes,
      broadcast networks were augmenented by cable, satellite, and internet
      Hypermarkets – combination of department store and supermarket
      brand names – some brands (Coca-Cola, Tide) developed over decades and may be quite durable, while some established a strong brand image in a fairly short period of time.
    • as a Fruitfly
      getting a brand name first has tremendous value to it
      as soon as Amazon got a brand name, it began to focus on supply chain management
      for business-to-consumer e-commerce companies, figuring out how to do the back ends of supply chain design and supply chain management is absolutely critical
    • How ClockspeedAffects Decision Making
      Boeing and Airbus
      plan for a super jumbo jet
      slow industry clockspeed, can afford to procrastinate
      AOL’s choice for an exclusive browser
      IE vs Netscape Navigator in 1995
      Fast industry clockspeed, have to make quick decisions
      has since attempted to reposition itself as a content provider similar to companies such as Yahoo & MSN, as opposed to an Internet service provider.
    • Commerce at the Speed of Light
      MICE industries have one of the fastest clockspeeds.
      high clockspeed and high uncertainty environments lead to hedging strategies
      Competitors become collaborators by entering into alliances and joint ventures to reduce the risks and control the industry standards
      Disney’s purchase of ABC broadcasting, Microsoft’s partnership with NBC (MSNBC)
    • Clockspeed Drivers:Technology and Competition
      technological innovation - Even slow-clockspeed industries today, in fact, will tell you that their underlying technologies are speeding things up for them because they rely on information communication technologies like everyone else
      competitive intensity - Today's trade regime and partly because Internet-based commerce basically allows any supplier in the world to reach any customer segment in the world. So no matter what business you're in, there are more suppliers who can get to your customers today than in the past (e.g. steel industry)
    • Clockspeed Drivers:Technology and Competition
      This results in the marginalization of the concept of sustainable advantage
      The faster the clockspeed, the more temporary the advantage
      This idea that you can develop a set of capabilities that will sustain you for a long period of time is now obsolete. You have to think of advantage as being temporary. The goal today is to find your way from one temporary advantage to the next one