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Those (such as I) who subscribe to the MIT Sloan Management Review have perhaps already read many of these essays. How convenient to have a single volume in which they are gathered; also, to have such a well-written Introduction by the editors and then a section ("The Authors") which suggests additional resources to explore. (I consider Markides' All the Right Moves: A Guide to Crafting Breakthrough Strategy to be one of the most important business books written within recent years.) Some owners/CEOs of smaller companies incorrectly believe that strategic thinking (at least as they understand it) is not of major importance when, in fact, the opposite is true. Go back and examine the origins of what have since become the world's largest corporations and you will learn that each began with one or two basic strategies. For example, when James Cash Penney opened his first store (named "The Golden Rule") in 1902 in Kemmerer (WY), his basic strategies were (a) to treat each customer as a guest and (b) to offer merchandise of the highest possible quality for the lowest possible price. More recently, in 1983, Michael Dell began to re-sell RAM chips and disk drives for IBM PCs (from his dormitory room at the University of Texas) and by April of 1984, his computer component business was grossing about $80,000 a month. His basic strategy then and now: To sell a limited selection of products directly to consumers and then provide superior service. My point, obviously, is that this book can be an invaluable resource for senior-level executives in large companies but can also be every bit as valuable to decision-makers in small-to-mid size companies.
The authors raise almost all of the most important questions to be asked about strategy and then, together, offer thoughtful (at times highly innovative) as well as practical responses to those questions. For example: How to define a company as a value creator rather than a value appropriator? How can a new management framework address the current business environment of complexity and uncertainty by expanding the spectrum of strategic positions? How can successful business strategy emerge from a decision-making process in which executives develop "collective intuition" and accelerate "constructive combat" while maintaining decision pacing and avoiding politics? You may not agree with all of the authors' observations and conclusions. Fair enough. But I am certain that, after having read this book, you will be a much more effective strategic thinker.
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Case studies are analyzed on how they used the "4 levers of Platform Leadership": 1) Scope of Firm, 2) Product Technology/Architecture, 3) Relationships with external complementors, and 4) Internal Organization.
Very well written.
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This is like explaining a football game entirely on the basis of the diagrams that the coaches drew on the chalkboard. What actually happened on the field gets no attention.
For example, the authors claim that one of Netscape's strategies was to leverage Internet standards. However, the reality is that with its browser Netscape thumbed its nose at Internet standards, particularly when it dominated the market. Even today, its browser generally is seen as less compliant with standards than is Microsoft Explorer.
Another alleged Netscape strategy was to "eat your own dogfood," which means using your own products. The reality is quite different. For example, Netscape released a production version of Enterprise 3.0 and kept its own web site on Enterprise 2.0 for several months afterward.
In 1996, a key component of Netscape's web server was something they called LiveWire, which provided scripting and database connectivity. I adopted it for my web site in the second half of 1996. However, after several months of trying to get it to work reliably, we had to abandon it, moving to Java servlets instead.
Meanwhile, as of late 1997 (when I stopped following it), Netscape's web site still had not adoped LiveWire. They let other users suffer with the bugs and problems in LiveWire, while they ran their own site using the older technology of CGI/Perl. That means they spent at least 1-1/2 years in real time (multiply by 7x to get Internet time) NOT eating their own dogfood. In contrast, Microsoft used their competing Active Server Page technology immediately on their sites.
To return to the football analogy, my epitaph for Netscape is that it is a company that told the press and its shareholders that it was aiming to play in the Super Bowl, but disdained to practice blocking and tackling.
While Netscape's executives were formulating these nifty strategies, Sun and Microsoft were getting their code in shape. In my opinion, that is most of the story.
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The purpose of the book is to explain what makes Microsoft tick. It may come as a surprise to most people, but, according to Cusumano, Microsoft is not a dictatorial fiefdom. Perhaps Microsoft's greatest success is in obtaining and retaining the best programmers in the field. Programmers are notoriously independent souls who likely wouldn't stand an overbearing workplace for long.
That's not to say that Microsoft is not a high pressure environment. Programmers are expected to meet deadlines and to be knowledgeable about what they are doing. This may sound axiomatic but the number of companies whose employees are partially (or even completely) in the dark is staggering.
The best part of "Microsoft Secrets" is that most of the lessons to be drawn from it can be applied to any organization, especially the people management techniques. Even some of the more 'software industry specific' techniques can be transferred to other deadline oriented industries (e.g. publishing).
The only real drawback to the study though is its long-windedness. When I say that Cusumano has gone to great lengths to present this picture of Microsoft, I mean he has *GONE TO GREAT LENGTHS*. This only detracts partially though as the book does remain a good read.
This text is most interesting to high-tech weenies who want to understand how Microsoft organizes its product development and market introduction. Like IBM, Microsoft feels that a market leader is obligated to create its own language. If you want to know the difference between a MSFT Program Manager and a MSFT Product Manager, get this book.
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In his subsequent books, especially those on Microsoft and Netscape, Cusumano slowly discovers that the traditional software development process, requirements/specifications/code, etc., e.g. the waterfall model, is *NOT* the model adopted by successful software companies (and, indeed, not the model adopted by many hardware companies). He learns that designs are not something to be churned out by a factory - indeed, if they can be churned out, then they should be reusing exactly the same software.
In some ways the packaged software industry, e.g. Microsoft, supplanted the custom software industry in this timeframe, the time of the PC; Microsoft's process, which Cusumano calls "synchronize and stabilize", may be considered to be JIT (Just In Time) software specification and development. Or, if not Just In Time, As Soon As Possible and No Earlier than Necessary.
While I cannot agree with the conclusions of this book, it is interesting to have on one's bookshelf, to see the evolution of the author's thought over time.
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