As we move into an era of simultaneous innovation and
commoditization, enabled by digital technologies, managers around
the world are asking themselves "how can we both adapt to rapid
changes in technology and markets, and still make enough money to
survive - and thrive?" To provide answers to these important and
urgent questions, MIT Sloan School of Management Professor Michael
Cusumano draws on nearly 30 years of research into the practices of
global corporations that have been acknowledged leaders and
benchmark setters - and Microsoft, Apple, Intel, Google, and others
in software, internet services, and consumer electronics, and
Toyota in manufacturing. If we look deeply enough, he contends, we
can see the ideas that underpin the management practices that make
for great companies, and drive their strategic evolution and
innovation capabilities. From his deep knowledge of these
organizations, Cusumano distils six enduring principles that he
believes have been - in various combinations - crucial to their
strategy, innovation management practices, and ability to deal with
change and uncertainty. The first two principles - platforms (not
just products), and services, for product firms - are relatively
new and broader ways of thinking about strategy and business
models, based on Cusumano's latest research. The other four -
capabilities (not just strategy), the "pull" concept, economies of
scope, and flexibility (not just efficiency) - all contribute to
agility, which is a mix of flexibility and speed. Some practices
associated with these ideas, such as dynamic capabilities,
just-in-time production, iterative or prototype-driven product
development, flexible design and manufacturing, modular
architectures, and component reuse, are now commonly regarded as
standard best practices. They are also essential to a new world
dominated by platforms and technology-enabled services.
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