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Manufacturing Technology Committee
Chandler, Arizona Facility
2005 A: The Net Rush
The Internet boom lasts and lasts; the quick and nimble create
vast wealth from primarily virtual assets
Structure of Commerce
- Exponential increases in processing, storage, networks, information
connectivity, education, and knowledge drive enormous wealth
creation
- We have not reached limits to this boom that feeds on virtual
resources; it is a sustained, great expansion of historic proportions
- Network economics drive major changes in business strategy:
incremental cost to serve new customer is zero; value increases
as square of network size
- New companies born of the digital age dominate the new economy;
first movers retain an advantage as new opportunities keep expanding
- Incumbents invest heavily in digital age startups
- If they buy a startup, they don't assimilate them
- If an e-business is created inside, they isolate it and
eventually spin it off
- Old company cores shrink slowly
- There are many "startup generators" that pump out
a steady stream of digital age wealth creators
- Build-to-order manufacturing is increasingly common as everyone
expects fulfillment of custom orders very quickly
Business Architecture
- Business leaders must manage to market cap: top-line not bottom-line
focus; develop the perception of momentum; strategy in motion-strategy
is revisited every quarter and decisions are made quickly
- Competition is based more on the future than the present;
competition is like a virtual hockey game in which everyone
is skating toward a constantly moving puck
- Speed is essential: move in big chunks
- Rely on the infrastructure of others
- Drive very fast product/service development
- Dispose often and quickly of prior-year systems and products
- Optimize everything for speed, agility, growth
- Build capacity and volume, even if you have to sustain large
losses
- New digital age high flyers attract the best and the brightest;
serious brain drain from incumbents accelerates their demise
- Managing virtual assets and information flows brings far
greater returns than managing physical assets and cash flows
- Goal-focused culture: leaders are dreamers who can hit the
numbers
Enablers
- Rapid feedback on markets, channels, campaigns, product/service
usage, and quality drives development
- Venture markets expand rapidly outside the US
- Information and knowledge management systems accelerate learning,
training, and decision making
- Legal and financial frameworks are now able to cope with
digital age instruments and risks
- Basic technologies have continued to increase in performance
exponentially
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