Core Competence, As It Is Used By

Capitalism Has Taught Us That Markets Are Always More Efficient Than Hierarchical Managerial Coordination. But In A Situation Where Those Three Conditions Aren't Met, I Can't Outsource Or Partner With You Because Markets Don't Function In The Absence Of Sufficient Information.

There's Usually Some Process By Which A Potentially Great Idea Gets Prostituted Into Something Lacklustre, Or By Which The Wrong Idea Gets Put Forward.

Many Think Of Management As Cutting Deals And Laying People Off And Hiring People And Buying And Selling Companies. That's Not Management, That's Deal Making. Management Is The Opportunity To Help People Become Better People. Practiced That Way, It's A Magnificent Profession.

Because Of The Disruption Phenomenon - Technological Progress Outstripping The Ability Of Customers To Utilize It - The General Tendency Is For The Money To Migrate Toward The Subsystems.

It Is When The Product Is Not Good Enough That Proprietary Integration Gives You A Competitive Edge. You Cannot Outsource And Be Competitively Successful In This Situation. But At The Other End, Where Standard Components Assembled In Standard Ways Can Yield Acceptable Performance, You Must Outsource.