Clockspeed Summary Essay

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Summary of Clock Speed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine Introduction 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…
For example, if computer buying slows down, the demand for chips drops rapidly creating a large drop for the manufacturers’ equipment used in making the component. The author goes on to give solid examples of how and why this effect is in place. The second law – clock speed amplification – is in contrast to the first. As you get closer to the end customer of the supply chain, the clock speed increases (Fine, 1998, p. 97). Computer software serves as a classic example. As computers become more powerful, more feature rich software becomes the expectation. The result is a “race” to provide more features to take advantage of the new power of the latest hardware. The end result is as supply chain design may ultimately be the competitive advantage as much as the product it produces. Supply chain design must now be part of the overall strategy for an organization rather than something that “just happens”. Using the supply chain design, market orientation (vertical vs. horizontal) and industry clock speed, specifically fast ones, organizations may find an advantage in their ability to concurrently design products, processes and capabilities (Fine, 1998, p. 127). When companies do not consider supply chain design and engineering as a concurrent activity in product design, they are setting themselves up for future issues. The author points out a similar relationship between product
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