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Shona L. Brown - Competing on the edge: strategy as structured chaos

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Unstable markets, fierce competition, and relentless change are the only certainties in todays chaotic business world. In their startling new book, authors Brown and Eisenhardt contend that to prosper in such volatile conditions, standard survival strategies must be tossed aside in favor of a revolutionary new paradigm - competing on the edge. To compete on the edge is to relentlessly reinvent, and its the only way to navigate the treacherous waters of tumultuous markets. Competing on the edge is an unpredictable, sometimes even inefficient strategy, yet a singularly effective one in an era driven by change. It requires charting a course along the edge of chaos, where a delicate compromise is struck between anarchy and order, to the edge of time, where current business is the primary focus, but actions are shaped by past legacies and future opportunities. By adroitly maneuvering through chaos and time, managers can avoid constantly reacting to nonstop change and instead set a rhythmic pace that others must follow, thereby shaping the competitive landscape - and their own destiny. In the first book to translate leading edge concepts from complexity theory into management practice, each chapter focuses on a specific management dilemma and illustrates a solution. Linking where do you want to go? With how will you get there? Heres a bold and surprising strategy that works - when the name of the game is change.

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title Competing On the Edge Strategy As Structured Chaos author - photo 1

title:Competing On the Edge : Strategy As Structured Chaos
author:Brown, Shona L.; Eisenhardt, Kathleen M.
publisher:Harvard Business School Press
isbn10 | asin:0875847544
print isbn13:9780875847542
ebook isbn13:9780585236698
language:English
subjectStrategic planning, Organizational change, Competition.
publication date:1998
lcc:HD30.28.B7822 1998eb
ddc:658.4/012
subject:Strategic planning, Organizational change, Competition.
Page iii
Competing on the Edge
Strategy as Structured Chaos
Shona L. Brown and Kathleen M. Eisenhardt
Page iv Copyright 1998 by the President and Fellows of Harvard College All - photo 2
Page iv
Copyright 1998 by the President and Fellows of Harvard College
All rights reserved
Printed in the United States of America
02 01 00 99 11 109 8 7
Library of Congress Cataloging-in-Publication Data
Brown, Shona L.
Competing on the edge: strategy as structured chaos / Shona L.
Brown and Kathleen M. Eisenhardt.
p. cm.
Includes index.
ISBN 0-87584-754-4 (alk. paper)
1. Strategic planning. 2. Organizational change. 3. Competition.
I. Eisenhardt, Kathleen M. II. Title.
HD30.28.B7822 1998
658.4'012dc21 97-41459
CIP
The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984.
Page v
To our parents, Marilyn and Richard Brown
and Marie and William Kennedy,
with love and thanks.
Page vii
Contents
Preface
ix
1
Strategic Challenge of Change
1
2
Playing the Improvisational Edge
25
3
Capturing Cross-Business Synergies
57
4
Gaining the Advantages of the Past
89
5
Winning Tomorrow Today
125
6
Setting the Pace
161
7
Growing the Strategy
189
8
Leading the Strategy
217
9
Rules of Competing on the Edge
241
Appendix: Methods
249
Notes
255
Bibliography
259
Index
287
About the Authors
299

Page ix
Preface
This book began because of our interest in what is probably the most dynamic and fast-paced industry in the worldcomputing. This industry brings to mind the Internet, multimedia, video games, and networking. It has spawned a new vocabulary that includes terms like bandwidth and Internet time, a new way to conduct commerce, and the concept of the global village. When we started working together in the early 1990s, it was difficult not to be caught up in the energy and excitement of the hi-tech scene. Articles in publications from the Wall Street Journal and Business Week to The Economist, Forbes, and Fortune all tracked the industry's progress. Would Sun succeed with Java? What would Bill Gates do next? Could Netscape survive? Would IBM and DEC see a resurgence in their businesses? The players became larger than life and the wealth created was phenomenal. But just as significant, the industry was the harbinger of the tumultuous change that would affect many other industries as the decade progressed. Computing was the prototypical industry for the new reality of high-velocity, intensely competitive markets.
This book also began because of our interest in some of the most exciting science, the confluence of complexity and evolutionary theories. As we started working together, scholars from biologists to physicists to paleontologists were exploring the fundamental nature of change. These scientists were uncovering cracks in the fortress of Darwinian evolutionary theory. How could breaks in the fossil record be explained? Did creation reverse the second law of thermodynamics? What explains the tremendous surge of life in the Cambrian explosion? Why did the dinosaurs become extinct? On the physics side, a vocabulary of change arose around non-linearities, chaos, and strange attractors. It was difficult for us not to be excited by the momentum and fervor about the new thinking around evolution.
Our interest in the computer industry was pragmatic. To us, the managerial problems were unprecedented. How could executives manage in industries that were so fast-paced and highly competitive? Planning was unrealistic because the marketplace was so volatile. Reacting was not an option because managers were constantly playing catch-up. So, how did managers cope in an industry with slogans like "have lunch or be lunch," "snooze, you lose," and "only the paranoid survive"? In contrast, our interest in science was intellectual. In some ways, we were "science geeks'' and found the ideas simply intrigu-
Page x
ing. But, more importantly, we were searching for new models to replace the mature paradigms that dominate strategy and organizational thinking.
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