Global comPetition is not just product versus product or company versus company. It is mind-set versus mind-set. Driven to understand the dynamics of competition, we have learned a lot about what makes one company mor...
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Global comPetition is not just product versus product or company versus company. It is mind-set versus mind-set. Driven to understand the dynamics of competition, we have learned a lot about what makes one company more successful than another. But to find the root of comPetitiveness-to understand why some companies create new forms of competitive advantage while others watch and follow - we must look at strategic mind-sets. For many managers, ''being strategic'' means pursuing opportunities that fit the company's resources. This approach is not wrong, Gary Hamel and C.K. Prahalad contend, but it obscures an approach in which ''stretch'' supplements fit and being strategic means creating a chasm between ambition and resources. Toyota, CNN, British Airways, Sony, and others all displaced competitors with stronger reputations and deeper pockets. Their secret? In each case, the winner had greater ambition than its well-endowed rivals. Winners also find less resource-intensive WaYs of achieving their ambitious goals. This is where leverage complements the strategic allocation of resources. Managers at competitive companies can get a bigger bang for their buck in five basic ways: by concentrating resources around strategic goals;by accumulating resources more efficiently;by complementing one kind of resource with another;by conserving resources whenever they can;and by -covering resources from the marketplace as quickly as possible. As recent competitive battles hav, demonstrated, abundant resource, can't guarantee continued industry leadership. To contend with hungry rivals, managers must master the art of resource leverage and recognize that creating stretch - a gap between where a company is and where it wants to be - is the most important task they face.
No industry relies more on information than banking does, vet Continental, one of America's largest banks, outsources its information technology. Why? Because that's the best way to service the customers that ...
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No industry relies more on information than banking does, vet Continental, one of America's largest banks, outsources its information technology. Why? Because that's the best way to service the customers that form the core of the bank's business, says vice chairman Dick Huber. In the late 1970s and early 1980s, Continental participated heavily with Penn Square Bank in energy investments. When falling energy prices burst Penn Square's bubble in 1982, Continental was stuck with more than $1 billion in bad loans. Eight years later when Dick Huber came on board, Continental was working hard to restore its once solid reputation. Executives had made many tough decisions already, altering the bank's focus from retail to business banking and laying off thousands of employees. Yet management still needed to cut costs and improve services to stay afloat. Regulators, investors, and analysts were watching every step. Continental executives, eager to focus on the bank's core mission of serving business customers, decided to outsource one after another in-house service - from cafeteria services to information technology. While conventional wisdom holds that banks must retain complete internal control of IT, Continental bucked this argument when it entered into a ten-year, multimillion-dollar contract with Integrated Systems Solutions Corporation. Continental is already reaping benefits from outsourcing IT. Most important, Continental staffers today focus on their true core competencies: intimate knowledge of customers' needs and relationships with customers.
Do it right, and your investment in information technology can have all sorts of strategic payoffs. Do it wrong, and you'll be paying, dearly, for nothing. Here's a guide to evaluating IT and measuring its imp...
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Do it right, and your investment in information technology can have all sorts of strategic payoffs. Do it wrong, and you'll be paying, dearly, for nothing. Here's a guide to evaluating IT and measuring its impact.
Success today flows to the company that establishes proprietary architectural control over a broad, fast-moving, competitive space, Charles R. Morris and Charles H. Ferguson claim in "How Architecture Wins Techno...
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Success today flows to the company that establishes proprietary architectural control over a broad, fast-moving, competitive space, Charles R. Morris and Charles H. Ferguson claim in "How Architecture Wins Technology Wars" (March-April 1993). No single vendor can keep pace with the outpouring of cheap, powerful, mass-produced components, so customers have been stitching together their own local systems solutions. Architectures impose order on the system and make interconnections possible. An architectural controller has power over the standard by which the entire information package is assembled. Because of the popularity of Microsoft's Windows, for example, companies like Lotus must conform their software to its parameters to be able to compete for market share. Proprietary architectural control has broader implications for organizational structure too: architectural competition is giving rise to a new form of business organization.
Two systematic biologists at the American Museum of Natural History in New York have built themselves a powerful parallel computing system from scratch and have slashed the time needed to uncover evolutionary relation...
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Two systematic biologists at the American Museum of Natural History in New York have built themselves a powerful parallel computing system from scratch and have slashed the time needed to uncover evolutionary relationships.
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