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As we continue in an era of simultaneous innovation and commoditization, enabled by digital technologies, managers around the world are asking themselves "how can we both adapt to rapid changes in technology and markets, and still make enough money to survive - and thrive?"
To provide answers to these important and urgent questions, MIT Sloan School of Management Professor Michael Cusumano draws on nearly 30 years of research into the practices of global corporations that have been acknowledged leaders and benchmark setters - including Apple, Intel, Google, Microsoft, Toyota, Sony, Panasonic, and others in a range of high-technology, services, and manufacturing industries. These companies have also encountered major challenges in their businesses or disruptions to
their core technologies.
If we look deeply enough, he contends, we can see the ideas that underpin the management practices that make for great companies, and drive their strategic evolution and innovation capabilities.
From his deep knowledge of these organizations, Cusumano distils six enduring principles that he believes have been - in various combinations - crucial to their strategy, innovation management practices, and ability to deal with change and uncertainty.
The first two principles - platforms (not just products), and services (especially for product firms) - are relatively new and broader ways of thinking about strategy and business models, based on Cusumano's latest research. The other four - capabilities (not just strategy or positioning), the "pull" concept (not just push), economies of scope (not just scale), and flexibility (not just efficiency) - all contribute to agility, which is a mix of flexibility and speed. Many practices associated
with these ideas, such as dynamic capabilities, just-in-time production, iterative or prototype-driven product development, flexible design and manufacturing, modular architectures, and component reuse, are now commonly regarded as standard best practices.
These six enduring principles are essential in a new world dominated by platforms and technology-enabled services.
- Sales Rank: #781911 in eBooks
- Published on: 2012-07-19
- Released on: 2012-07-19
- Format: Kindle eBook
Review
"[The book's] six principles represent a set of guidelanes that executives in any company or industry should consider in order to achieve high performance over the long terms."--Strategy+Business (named a 2011 Best Business Book)
About the Author
Michael A. Cusumano is the Sloan Management Review Distinguished Professor of Management and Engineering Systems at the Massachusetts Institute of Technology's Sloan School of Management, with a joint appointment in MIT's Engineering Systems Division. He specializes in strategy, product development, and entrepreneurship in the software business. He has consulted for more than 50 major firms around the world and is the author or co-author of 8 books. The Business of Software was named one of the top business books of 2004 by Steve Lohr of the New York Times. The international best-seller Microsoft Secrets (1995, with Richard Selby), has been translated into 14 languages. Competing on Internet Time: Lessons from Netscape and its Battle with Microsoft (1998, with David Yoffie) was named a top-10 Business Week book.
Most helpful customer reviews
7 of 7 people found the following review helpful.
A valuable guide in the age of cloud-enabled business
By Leif C. Ulstrup
Professor Cusumano's "Staying Power" is a major contribution in the field of business strategy.
I am in the business of technology and management strategy consulting and think his ideas have enormous value to any executive grappling with the implications and opportunities of cloud-computing enabled business. His six principles are easy to grasp. They are deceptively simple and are particularly powerful in a commercial and public sector business climate of austerity where new business models are emerging that will fuel our next growth cycle, but are disrupting incumbents. The introduction of cloud computing is beginning to have a disruptive effect on a wide range of business. Living through that disruption in day-to-day business can make it hard to see the bigger patterns at play and think through what the future state will look like. Professor Cusumano's elaboration of the platform/complementer services model with his excellent historical context and current market analysis makes it much clearer where we are headed in my industry and to seize emerging opportunities.
I purchased the book based on an Amazon recommendation and I am very grateful I did. The book is written in a more academic style than is typical of the more popular style business and management books. In fact, I picked it up and sat it down several times before committing to the book. It is not a book designed to skim. It requires concentration and focus to understand how Professor Cusumano has reached the conclusions he has. His ability to characterize the current disruptive innovation cycle in the information technology business using his analysis of the history of both the information technology and automotive industry is excellent. It is a fascinating story leading up to today's new business models.
Once I started really focusing on the book, I could not put it down. My copy is full of highlighter pen marks and 3M stickers. Kudos to Professor Cusumano for a valuable tool for business executives trying to figure out how to proactively take advantage of the cloud-enabled business models that are emerging. I hope that he extends this work with additional video and supplementary blog or presentation materials to continue to expand on his ideas and share more examples of the ideas in action. I have already begun converting his ideas into execution in my business.
5 of 5 people found the following review helpful.
Why managers should read "Staying Power"
By J. S.
"Staying Power" is one of these rare books on strategic management that is both thoughtful and engaging. The author uses real examples and established companies from different industries and different countries, to illustrate a number of principles that hold for all companies. The "six enduring principles" presented in the book may not be obvious at first, but they are fundamental principles to guide you in improving the performance of your company or business unit, new or mature, small or large. The principles come alive with the examples. The examples are so vivid and well told that any experienced manager will be able to feel inside the respective company, looking carefully at the case in point and interiorizing what each principle is about and how to put it in practice in her or his company or business unit. This book is not a "quick read", but you can read it effectively one principle (one chapter) at a time. Your time will be very well rewarded.
4 of 5 people found the following review helpful.
Must read book on technology strategy
By V.A.
Staying Power book builds upon the material covered in his earlier books "business of software" and "platform leadership" and takes it to the next level. This book is a good read for anyone connected with software strategy or for senior executives in a technology company. Cusumano has taught strategy courses at MIT for over 15 years and he lays down some of the fundamental strategies for attaining and maintaining a leadership position in a technology industry.
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