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By David B. Yoffie

The essays during this very important assortment display that the main to luck for firms competing within the new electronic international usually are not to engineer vast technological breakthroughs, yet relatively to boost new services via creatively combining new and current applied sciences with cutting edge managerial ways. The booklet gains contributions from students at associations together with the Harvard enterprise university, Stanford, and MIT, in addition to senior managers at Intel, IBM, and Mercer administration Consulting. Drawing classes from their very own and different top businesses of the data age, together with Silicon pix, sunlight Microsystems, and Microsoft, the authors discover the dynamics of the swiftly evolving electronic surroundings. those well timed essays handle customers for convergence; establish fiscal, criminal, and managerial stumbling blocks to convergence; position the pc in old standpoint; and think about the managerial demanding situations of the recent setting, in particular product and procedure improvement and the position of interfirm alliances.

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Extra resources for Competing in the age of digital convergence

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The IBM System 360, which revolutionized the computer industry in the early 1960s, was a $5 billion investment that bet the company. Media firms, such as Malone's TCI and Murdoch's Fox Broadcasting and Sky TV, and Time Warner have bet billions of dollars since the 1970s to build infrastructure and programming. And billions are being invested in the 1990s to push out the technological frontier of semiconductors, software, communications, and consumer electronics. Enormous technological progress is in the offing, much of which will require large-scale investment.

But firms that set important standards, create the dominant designs, or control a dominant architecture 24 may be even more important in converging industries than they were in PCs or consumer electronics. Unlike the stand-alone products of the early consumer electronics industry or the early personal computer industry, competition in the new digital industries will revolve around networks and communication. If there are multiple standards, there will be less ability to communicate and interact.

Computers are spreading to the home throughout the world. 5 By making computing power cheap and ubiquitous, computers have already begun to envelop adjacent businesses, ranging from calculators to answering machines, and from electronic games to faxes. As semiconductors and related software become more powerful and cost less, they allow computers to take over a growing range of functions in the home and the office. In fact, computer and semiconductor technologies have an imperial nature: each new generation of chip grabs more functionality from related products, and each new generation of computer utilizes chip and software technology to conquer new businesses.

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