Clayton M. Christensen quote: “During the early stages of an industry, when the functionality and reliability of a product isn't yet adequate to meet …”

“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

“To any thinking person, it must be obvious that there is something badly wrong in relations between human beings and the animals that human beings rely on for food; and that in the past 100 or 150 years whatever is wrong has become wrong on a huge scale, as traditional animal husbandry has been turned into an industry using industrial methods of production. … It would be a mistake to idealise traditional animal husbandry as the standard by which the animal-products industry falls short: traditional animal husbandry is brutal enough, just on a smaller scale. A better standard by which to judge both practices would be the simple standard of humanity: is this truly the best that human beings are capable of?”

J.M. Coetzee (1940) South African writer

“ Animals can't speak for themselves - it's up to us to do it! http://www.theage.com.au/news/opinion/animals-cant-speak-for-themselves--its-up-to-us-to-do-it/2007/02/21/1171733841769.html,” in theage.com.au (February 22, 2007)

“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

“As open systems, organizations faced an environment that might be placid and benevolent, or turbulent and harsh. Economic, social, political, and technological changes could come rapidly or slowly, and some organizational arrangements might be better able to cope with the changing environment than others. Could it be that there was no one way to structure an organization that design was influenced by environmental factors and could vary, depending on technology?
Joan Woodward (1916–1971) took this contingency view, classified organizations by the complexity of the technology used in producing goods, and found that it influenced an organization’s structure. Her classification, ranging from less complex (1) to more advanced (3), consisted of (1) unit and small-batch production systems that produced made-to-order and customized products to meet consumers’ needs; (2) large-batch and mass production, which involved a fairly standardized or uniform product with but few variations in its final appearance; and (3) long-run continuous-process production, which involved a standard product manufactured by moving through a predictable series of steps.”

Daniel A. Wren (1932) American business theorist

Source: The evolution of management thought, 1972, p. 462-3 (in 2009 edition)

“Capitalism is commodity production at the highest stage of development, when labor power itself becomes a commodity. The growth of internal exchange, and particularly of international exchange, is a special feature of capitalism. The uneven and spasmodic character of the development of individual enterprises, of individual branches of industry and individual countries, is inevitable under the capitalist system.”

Vladimir Lenin (1870–1924) Russian politician, led the October Revolution

Source: Imperialism, The Highest Stage of Capitalism (1917), Chapter Four, "The Export of Capital"

“…if you increase living standards you make labor more productive. This is why Asia today is becoming more productive than the United States.”

Michael Hudson (economist) (1939) American economist

" "Higher Taxes on Top 1% Equals Higher Productivity http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=6000", Video Interview (13:28), The Real News Network (TRNN) (January 1, 2011)

“As the technology matures, it becomes less and less relevant. The technology is taken for granted. Now, new customers enter the marketplace, customers who are not captivated by technology, but who instead want reliability, convenience, no fuss or bother, and low cost.”

Donald A. Norman (1935) American academic

Source: The Invisible Computer (1998), Ch. 10

“Big industry, competition and generally the individualistic organization of production have become a fetter which it must and will shatter.”

Friedrich Engels (1820–1895) German social scientist, author, political theorist, and philosopher

(1847)

“As far as the customer is concerned, the interface is the product.”

Jef Raskin book The Humane Interface

The Humane Interface (2001)

Help us to complete the source, original and additional information

Clayton M. Christensen 23

Related quotes

Related topics