“Despite a decade or more of restructuring and downsizing, many U. S. companies are still unprepared to operate in the 1990s. In a time of rapidly changing technologies and ever-shorter product life cycles, product development often proceeds at a glacial pace. In an age of the customer, order fulfillment has high error rates and customer inquiries go unanswered for weeks. In a period when asset utilization is critical, inventory levels exceed many months of demand.
The usual methods for boosting performance — process rationalization and automation — haven’t yielded the dramatic improvements companies need. In particular, heavy investments in information technology have delivered disappointing results — largely because companies tend to use technology to mechanize old ways of doing business. They leave the existing processes intact and use computers simply to speed them up.
p. 104; The two lead paragraphs”

“Those responsible for marketing had to sell, not a product, but the idea that their firm was able to produce what the customer required. The product was developed after the order had been secured, the design being, in many cases, modified to suit the requirements of the customer. In mass production firms, the sequence is quite different: product development came first, then production, and finally marketing.”

“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.”

“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.”

“This decade holds many changes for the United States, but the greatest needs regarding America's productivity in the 1990s, are better education and employee training.”

“Nonroutine tasks:… There are few well-established techniques; there is little certainty about methods, or whether or not they will work. But it also means that there may be a variety of different task to perform, in the sense that raw materials are not standardized, or orders for customers ask for many different or custom-made products.”

“Creating demand is hard. Filling demand is easier. Don't create a product, then seek someone to sell it to. Find a market - define your customers - then find or develop a product for them.”

“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.”

“An irresistible cycle seemed to operate, repeating patterns of the ancient world where civil strife and war brought disaster… I surmised that patterned and predictable changes were in turn rooted in the very nature of civilization—the ineluctable breaker of custom and eroder of moral codes, and itself a product and expression of rapid technological and social change.”

“Don't find customers for your products, find products for your customers.”