Clockspeed: Winning Industry Control in the Age of Temporary Advantage (Revised)

It would be a mistake to be employed in some supply chain capacity and *not* read this book. I believe that it offers an intriguing set of solid examples of how incorporating supply chain management into strategy discussions has helped some companies profit at the expense of others.Some commenters have noted that examples seem anecdotal. I tend to think that Fine's approach here, in going into depth with just a few examples, is a richer basis upon which to draw conclusions. You don't necessarily need a statistically significant sample set in order to gain insights into how to conduct strategy.I would also take issue with one reviewer's note that it is overly geared towards manufacturing, rather than services. Managing supply chains and conducting make-buy decisions are clearly the province of operations. But shouldn't consulting services develop precisely those areas of expertise in order to assist their biggest clients?A note of disclosure: I took Fine's course on this subject while at MIT. While I wouldn't trade having been in that graduate seminar for 100 books, if you can't take the course, at least read the book! Doing so brought back the pleasure for me of being in his class.

This book has some really interesting threads around supply chain design competency, clockspeed, and learning from industry fruit flies, but the real value of the book is in between all of that. For years, there have been wonderful insights into technology strategy, product architecture, manufacturing strategy, etc. etc. roaming around the halls of MIT and throughout journal articles. The only way to really tap this depth of knowledge is by being there. Charlie has woven these thoughts, ideas, and concepts throughout the book rather seemlessly. If you read the book carefully, and think very hard about some of the nuggets throughout the book, I'm sure it will be worth your time.

I enjoyed this book and found it useful. The concepts in this book are widely applicable to a variety of situations. The book addresses many cases in large institutions; however, many of the concepts also can be applied at the project or start-up level. Several concepts in the book are applicable to common situations: 1) Virtual Company: This framework allows one to assess whether a company has enough capability to remain a virtual company or eventually become a "hollow" company. By using the 3-d and the key characteristics frameworks, Prof. Fine provides a good understanding of which areas of the value chain to keep under control. Of course, to retain a very small asset base initially, one could potentially outsource areas where the company does not have the capacity or capability, but should be looking to bring in-house those functions that have been outsourced for capability. 2) Combining the clockspeed concept and the double helix with the "innovator's dilemma" and marketspace concepts generates some useful insights. When the helix starts turning, from a integral solution to a modular form, that is an optimum time to be forming an entrepreneurial company. When the helix is switching back to vertically integrated industry structure, that implies a mature market with consolidation that is not as inducive to entrepreneurship. At the switch from integral to modular, you will see many growing markets. Though the entire market may not grow, the actual marketspaces will grow tremendously and create new value propositions. This is the middle of the classic "S" curve where the venture capitalists tend to invest, and it is the time where "clunky" upstarts begin their innovations - similar to the electric cars in the innovator's dilemma.This morning I was listening to a lecture from Brad Geagley of Disney Imagineering describing their new retail theme parks "DisneyQuest." Just as Disney always does, they are applying the latest technology to entertainment. Mr. Geagley described how Disney has to keep certain elements of its attractions upgradeable because the technology is changing at different rates. The mechanical aspects (head-mounted displays, etc.) are designed in-house with lengthy half-lives. Other parts, like the software and animation technology, are changing every few months. Some technologies are outsourced (Silicon Graphics), while other aspects such as the animation are proprietary and done in-house. All of these made me immediately think that these guys should get a copy of this book. They would feel much more in control of the process. Thanks Prof. Fine.

Charley Fine's contribution in Clockspeed is his unique combination of an analysis of the development speed of different industries with his "double helix" description of the industry trends toward vertical integration or its opposite. Understanding these trends and the pace of the evolution of your "ecological habitat" and gaining value chain advantage in your chosen niche is vitally important to high tech startups whose very lives depend on operating at maximum clockspeed. I am recommending the book to my venture partners and to every startup we are considering for investment.

Clockspeed succeeds at both providing deeper insights than a typical business book and in being very interesting to read. Fine explores the fascinating dynamics of competition and competitive advantage, and explains puzzles like why the computer industry has gone from being highly vertically integrated to being a disintegrated network of competing and cooperating firms. Going beyond description and explanation, Clockspeed provides concrete steps managers can take to ensure that their companies survive industry turbulence.