Clockspeed Summary

1509 words 7 pages
Summary of
Clock Speed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine

In order to conduct a scientific study, you set a baseline then introduce changes in order to understand the impact of the change. Unfortunately, the rate of change, or clock speed, in many studies (human evolution as an example) is too slow for one person to have time to introduce multiple changes and measure the results. Biologists have found by studying fruit flies (a rapid clock speed with a life span of days rather than years), they can reach conclusions faster by studying multiple life spans in a short amount of time. As with the fruit fly, some businesses also have a rapid cycle making them a prime target for
…show more content…

The supply chain architecture may ultimately drive concurrent engineering thus competitive ability of the organization. By considering “make versus buy” and “integral versus modular” distinctions, organizations then determine the criticality of the supply chain design. Elements considered in the design include four proximity dimensions: geographic (integrated products need co-located teams), organizational (ownership, managerial oversight, interpersonal), cultural (language, ethics, laws) and electronic (e-mail, intranets, information exchange functions). “Lean” production relies on close proximity in geography, organization and culture. It will take the fourth element working in various states with the other three to create a global, integrated organization. To this point, the one component not considered in the discussion is organizational knowledge. Ultimately this drives decisions around integration and modularity. That decision then manifests itself in “make versus buy” decisions. The historical view for the buy decision was based on a vendor relationship rather than the more subtle partner approach. In current supply chain design, it is imperative organizations properly align themselves with their partners not only in product requirements, but also in governance and direction. As the partnership grows, so does the dependence. If an organization finds itself dependent on a supplier for both capacity and