David P. Norton quote: “Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age…”

“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

“In a poetic sense the prime goal of the new economy is to undo – company by company, industry by industry – the industrial economy.”

Kevin Kelly (1952) American author and editor

Out of Control: The New Biology of Machines, Social Systems and the Economic World (1995), New Rules for the New Economy: 10 Radical Strategies for a Connected World (1999)

“The industrial landscape is already littered with remains of once successful companies that could not adapt their strategic vision to altered conditions of competition.”

Ralph Abernathy (1926–1990) American Civil Rights Movement leader

“Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times…
Now all employees must contribute value by what they know and by the information they can provide. Investing in, managing, and exploiting the knowledge of every employee have become critical to the success of information age companies”

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

Source: The Balanced Scorecard, 1996, p. 5-6

“Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times…
Now all employees must contribute value by what they know and by the information they can provide. Investing in, managing, and exploiting the knowledge of every employee have become critical to the success of information age companies”

Robert S. Kaplan (1940) American accounting academic

Source: The Balanced Scorecard, 1996, p. 5-6

“The big will have a different kind of bigness. The network economy encourages the middle space. It supplies technology (which the industrial age could not) to nurture mid-sized wonders.”

Kevin Kelly (1952) American author and editor

Out of Control: The New Biology of Machines, Social Systems and the Economic World (1995), New Rules for the New Economy: 10 Radical Strategies for a Connected World (1999)

“Visionaries are the first people in their industry segment to see the potential of the High Tech Marketing Enlightenment new technology. Fundamentally, they see themselves as smarter than their opposite numbers in competitive companies—and, quite often, they are. Indeed, it is their ability to see things first that they want to leverage into a competitive advantage. That advantage can only come about if no one else has discovered it. They do not expect, therefore, to be buying a well—tested product with an extensive list of industry references. Indeed, if such a reference base exists, it may actually turn them off, indicating that for this technology, at any rate, they are already too late.”

Geoffrey Moore book Crossing the Chasm

Source: Crossing the Chasm, 1991, p. 41-42

“Market share was the grand old metric, the guiding light, the compass of the product-centric age. Companies focused on improving their product and building economies of scale. This product-centric thinking led to the battle cry: "Get more market share and the profit will follow."”

Adrian Slywotzky (1951) American economist

Source: The Profit Zone (2007), p. 3.

“From microchips to corn chips, software to soft drinks, and packaged goods to package delivery services, executives have watched the intensity and type of competition in their industries shift during the last few years. Industries have changed from slow moving, stable oligopolies to environments, characterized by intense and rapid competitive moves, in which competitors strike quickly with unexpected, unconventional means of competing. They now confront “hypercompetitors” who continuously generate new competitive advantages that destroy, make obsolete, or neutralize the industry leader’s advantages, leaving the industry in disequilibrium and disarray.”

Richard D’Aveni (1953) American economist

Richard A. D’Aveni (1997). " Waking up to the New Era of Hypercompetition https://www.researchgate.net/publication/233454654_Waking_Up_to_the_New_Era_of_Hypercompetition". The Washington Quarterly, Sept. 3, 1997. p. 183–195. Lead paragraph.

“During the early stages of an industry, when the functionality and reliability of a product isn't yet adequate to meet customer's needs, a proprietary solution is almost always the right solution -- because it allows you to knit all the pieces together in an optimized way.
But once the technology matures and becomes good enough, industry standards emerge. That leads to the standardization of interfaces, which lets companies specialize on pieces of the overall system, and the product becomes modular. At that point, the competitive advantage of the early leader dissipates, and the ability to make money migrates to whoever controls the performance-defining subsystem.
In the modular PC world, that meant Microsoft and Intel (NASDAQ:INTC), and the same thing will happen in the iPod world as well. Apple may think the proprietary iPod is their competitive advantage, but it's temporary. In the future, what will matter will be the software inside that lets users find exactly the kind of music they want to listen to, when and where they want to, with minimal effort.”

Clayton M. Christensen (1952–2020) Mormon academic

2006 interview in Business Week, cited in: Rebutting Clayton Christensen on Apple's 'Troubled' Future http://seekingalpha.com/article/5633-rebutting-clayton-christensen-on-apples-troubled-future-aapl-msft-dell in Seeking Alpha (11 January 2006)
2000s

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