This document discusses how clockspeed, or the rate of change, varies across industries based on the speed of process, product, and organizational changes. It provides examples of how distribution channels, brands, and supply chains have evolved at different paces in different industries. Faster clockspeed industries like MICE (meetings, incentives, conferences, exhibitions) require more agile strategies like hedging and collaboration between competitors. Technology innovation and competition are key drivers of increasing clockspeed, making sustainable advantages more temporary.

1. Chapter 2What Fruit Flies Teach Us About Business

2. Submetricsto Measure ClockspeedEach industry evolves at a different rate depending on the following:Process: measured by capital equipment obsolescence ratesProduct: measured by rates of new product introduction or intervals between new product generationsOrganizational: measured by rates of change in organizational structures

3. Submetricsto Measure ClockspeedAssets that are not explicitly process, product, or organizational distribution channelsfilm industry – from small local theatres to regional megaplexes, broadcast networks were augmenented by cable, satellite, and internetHypermarkets – 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.

4. 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

6. How ClockspeedAffects Decision Making Boeing and Airbus plan for a super jumbo jet slow industry clockspeed, can afford to procrastinateAOL’s choice for an exclusive browserIE vs Netscape Navigator in 1995Fast industry clockspeed, have to make quick decisionshas since attempted to reposition itself as a content provider similar to companies such as Yahoo & MSN, as opposed to an Internet service provider.

7. Commerce at the Speed of LightMICE industries have one of the fastest clockspeeds.high clockspeed and high uncertainty environments lead to hedging strategiesCompetitors become collaborators by entering into alliances and joint ventures to reduce the risks and control the industry standardsDisney’s purchase of ABC broadcasting, Microsoft’s partnership with NBC (MSNBC)

8. Clockspeed Drivers:Technology and Competitiontechnological 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 elsecompetitive 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)

9. Clockspeed Drivers:Technology and CompetitionThis results in the marginalization of the concept of sustainable advantageThe faster the clockspeed, the more temporary the advantageThis 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