Clockspeed Summary
Summary of
Clock Speed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine
Introduction
In order to conduct a scientific study, you set a baseline then introduce changes in order to understand the impact of the change. Unfortunately, the rate of change, or clock speed, in many studies (human evolution as an example) is too slow for one person to have time to introduce multiple changes and measure the results. Biologists have found by studying fruit flies (a rapid clock speed with a life span of days rather than years), they can reach conclusions faster by studying multiple life spans in a short amount of time. As with the fruit fly, some businesses also have a rapid cycle making them a prime target for study in application to business in general. By studying organizations with fast clock speeds, one can draw inferences to others. Essentially, studying fruit fly industries lets us understand all industries with the idea of implementing effective change in any company regardless of their individual clock speed.
Analysis
Clock speed is defined as the rate an industry evolves based on product, process or organizational change. By looking across multiple industries, it is possible to find some with very rapid clock speeds and others with exceptionally slow ones. By taking lessons from industries such as entertainment and computers (very fast), one can draw conclusions for the automobile and aircraft industries (longest cycles noted). In his analysis, Charles Fine goes on to note that as the speed of an industry accelerates, the advantage one company may gain shortens – advantages are temporary. This conclusion is somewhat intuitive since the research and development to production cycle gets shorter. Others can copy and move into a competitive state more quickly. In order to maintain the advantage, it becomes more critical to simultaneously develop products, processes and supply chains. The author describes this as three
Clock Speed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine
Introduction
In order to conduct a scientific study, you set a baseline then introduce changes in order to understand the impact of the change. Unfortunately, the rate of change, or clock speed, in many studies (human evolution as an example) is too slow for one person to have time to introduce multiple changes and measure the results. Biologists have found by studying fruit flies (a rapid clock speed with a life span of days rather than years), they can reach conclusions faster by studying multiple life spans in a short amount of time. As with the fruit fly, some businesses also have a rapid cycle making them a prime target for study in application to business in general. By studying organizations with fast clock speeds, one can draw inferences to others. Essentially, studying fruit fly industries lets us understand all industries with the idea of implementing effective change in any company regardless of their individual clock speed.
Analysis
Clock speed is defined as the rate an industry evolves based on product, process or organizational change. By looking across multiple industries, it is possible to find some with very rapid clock speeds and others with exceptionally slow ones. By taking lessons from industries such as entertainment and computers (very fast), one can draw conclusions for the automobile and aircraft industries (longest cycles noted). In his analysis, Charles Fine goes on to note that as the speed of an industry accelerates, the advantage one company may gain shortens – advantages are temporary. This conclusion is somewhat intuitive since the research and development to production cycle gets shorter. Others can copy and move into a competitive state more quickly. In order to maintain the advantage, it becomes more critical to simultaneously develop products, processes and supply chains. The author describes this as three
References: Fine, C. H. (1998). Clock Speed: Winning Industry Control in the Age of Temporary Advantage. Reading, Massachusetts: Perseus Books.