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Clockspeed : Winning Industry Control in the Age of Temporary Advantage Paperback – Illustrated, October 1, 1999
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About the Author
- Item Weight : 13.3 ounces
- Paperback : 289 pages
- ISBN-10 : 0738201537
- ISBN-13 : 978-0738201535
- Dimensions : 6.14 x 0.73 x 9.21 inches
- Publisher : Basic Books; Revised ed. edition (October 1, 1999)
- Language: : English
- Best Sellers Rank: #1,125,098 in Books (See Top 100 in Books)
- Customer Reviews:
Top reviews from the United States
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-No Advantage is Permanent
New roles are needed to mine new opportunities. Outsourcing and downsizing with only cost-savings in mind can create critical limits in supply chains. Choosing appropriate strategic capabilities for the core toolbox is the ultimate strategic core competency. Leaders must identify high-value-added capabilities; commodity-destined capabilities and time scales for both.
Three sub-metrics are involved in evaluating clock speed: process, product and organization. Consider obsolescence rates of all three in strategic planning.
Since all advantage is temporary, they key is to repeatedly choose which advantages to cultivate for changing market conditions.
-No Capability Exists in a Vacuum
Fine asserts that "there is no competency more critical than that of superior design of one's capability chain - from the final consumer all the way upstream to the sources of raw materials and new technological concepts." This underscores the need for careful attention in designing the extended organization. Placing supply chain management in the context of the suite of stakeholders gives a more full view of the need to manage capabilities: where are the greatest opportunities are in the chain and where resources will be most scarce in the future?
Small changes in the middle of the chain can have large effects at both ends. Plan, monitor and reassign accordingly. Map the capabilities chain to identify weak links and provide a new view of opportunities. A strategic "cord of three strands" is made of intertwined chains of organizations, technologies and capabilities. This idea forms the foundation for the pinnacle concept of concurrent engineering.
Three-dimensional concurrent engineering (3DCE) or integrated product development is the simultaneous, coordinated development of products, processes and supply chains (including strategic capabilities). It is important to view the supply chain as an extended enterprise, not just a series of transaction nodes. Concurrently designing products (or services), processes and supply chains improves overall ability to effectively navigate rapidly changing supply and market pressures by strategically managing with the extended enterprise in view. Silos cannot exist in this framework.
These ideas underpin the key steps to capabilities chain design: determine what capabilities are core versus peripheral; what to outsource; which suppliers to use. Capability chains and supply chains are interwoven. Manage them integrally to become responsive and to foresee, prepare and adapt to meet new challenges before they arrive.
1. analysis of supply chains, understanding an industry, and how you can draw conclusions and foresee the future,
2. how to work with supply chains; what to build or buy and how to treat your suppliers, etc.
I am interested in the analysis and not supply chain so the first part of the book was pleasing.
I will tell you why I liked the first part of the book:
a) Fine describes how fast an industry is "updated". From the slowest (ex: military and civic flight) to the fastest (ex: mobile telephony, internet, etc). This made me understand why mobile operators have lost the war against the Nokias of the world, and why all are afraid when Google and Yahoo! enters the mobile space.
b) He then tells you why an industry is VERTICAL with
integral/integrated parts or HORIZONTAL with modular parts and what drives an industry to change, and why the change goes back and forth over time. This was absolutely fantastic for me because it really explained the rationale behind internal development, niches and outsourcing.
The rest of the book describes ethics and philosophy within supply chain dynamics, how to control sourcing, and simple rules of why to build or buy.
Fine writes in a simple language, but the toolbox he gives you is complex and made me understand the industry I work in with new eyes!