Warren Buffett quote: “Most companies are saddled with institutional constraints. A company's history, for example, may commit it to an indust…”

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

David P. Norton (1941) American business theorist, business executive and management consultant

Source: The Balanced Scorecard, 1996, p. 2-3

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

Robert S. Kaplan (1940) American accounting academic

Source: The Balanced Scorecard, 1996, p. 2-3

“Management of an industrial company must be giving targets to the engineers constantly; that may be the most important job management has in dealing with its engineers.”

Akio Morita (1921–1999) Japanese businessman

Source: Made in Japan (1986), p. 168.

“It should first be stated that a joint-stock company is not a 'brotherhood of shareholders' but is managed by a controlling group of big shareholders while the rest of the shareholders do not differ from holders of bonds with a flexible rate of interest.”

Michał Kalecki (1899–1970) Polish economist

Source: Theory of Economic Dynamics (1965), Chapter 8, Entrepreneurial Capital and Investment, p. 93

“[an Ontario-based bus company] Trentway-Wagar was arguing that because carpooling used to be inconvenient, it should always be inconvenient, and if that inconvenience disappeared, then it should be reinserted by legal fiat. Curiously, an organization that commits to helping society manage a problem also commits itself to the preservation of that same problem, as its institutional existence hinges on society’s continued need for its management. Bus companies provide a critical service—public transportation—but they also commit themselves, as Trentway-Wagar did, to fending off competition from alternative ways of moving people from one place to another.”

Clay Shirky (1964) American technology writer

Cognitive Surplus : Creativity and Generosity in a Connected Age (2010)

“Most large industrial concerns are limited by policy to special directions of expansion within the well-established field of the company.”

Edwin H. Land (1909–1991) American scientist and inventor

Congressional testimony (1945)
Context: Most large industrial concerns are limited by policy to special directions of expansion within the well-established field of the company. On the other hand, most small companies do not have the resources or the facilities to support "scientific prospecting." Thus the young man leaving the university with a proposal for a new kind of activity is frequently not able to find a matrix for the development of his ideas in any established industrial organization.

“In addition to technical problems, systems also have organizational and logistical problems. Many different people may be involved over a wide physical or geographic coverage and over a long period of time. Many may work for different companies or organizations with different rules and methods of operating. Very many data and much knowledge are involved. The organizational problem concerns itself with the question of how all these people can work together most effectively for the common purpose.”

Harold Chestnut (1917–2001) American engineer

Source: Systems Engineering Tools, (1965), Systems Engineering Methods (1967), p. 24; First paragraph of Ch. 2. System Organization, Scheduling, and Record-Keeping

“Part of America's industrial problems is the aim of its corporate managers. Most American executives think they are in the business to make money, rather than products or service…The Japanese corporate credo, on the other hand, is that a company should become the world's most efficient provider of whatever product and service it offers. Once it becomes the world leader and continues to offer good products, profits follow.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

Source: Out Of The Crisis (1982), p. 99

“The aggregate capital appears as the capital stock of all individual capitalists combined. This joint stock company has in common with many other stock companies that everyone knows what he puts in, but not what he will get out of it.”

Karl Marx (1818–1883) German philosopher, economist, sociologist, journalist and revolutionary socialist

Vol. II, Ch. XX, p. 437.
(Buch II) (1893)

“There are many examples of companies and countries that have improved their competitiveness and efficiency by adopting open source strategies. The creation of skills through all levels is of fundamental importance to both companies and countries.”

Mark Shuttleworth (1973) South African entrepreneur; second self-funded visitor to the International Space Station

Go Open Source puts R3m into building Linux channel, Tectonic staff, Tectonic, South Africa, 2006-01-30, 2011-09-11 http://www.tectonic.co.za/?p=840,

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