IN THIS SUMMARY
Clockspeed grew out of Charles Fine’s study of the strategic impact of supply-chain strategy on competitive advantage. Fine decided that instead of monitoring the supply chains of slowly evolving businesses, he would speed things up by studying the industrial equivalents of fruit flies, which have a life span under two weeks and can reveal much about successive generations in a short period of time. Thus, was born the concept of fast-clockspeed industries (industrial "fruit flies") and the premise that industries with very rapid evolutionary rates can be examined for information that will benefit businesses of all kinds.When industrial fruit flies are observed, several patterns in industry dynamics can be discerned. Understanding these dynamic processes helps companies develop principles to guide their own choices in the value chain. In addition, by observing dynamic processes in the evolution of industry structures, firms can also develop insights into how an industry’s future may unfold. The greatest rewards go to the companies that can anticipate, time after time, which capabilities are worth investing in and which should be outsourced, which should be cultivated and which should be discarded, and which will be the levers of value-chain control and which will be controlled by others.Companies and individuals must learn to focus directly on two distinct sets of priorities: exploiting their current capabilities and competitive advantages while also consciously and purposefully building new capabilities for the inevitable moment when the old ones no longer provide an advantage. In tumultuous, fast-clockspeed markets, firms cannot hide behind a lock-in strategy, but must continuously develop new capabilities in preparation for the inevitable new opportunities and battles just around the corner. And, they must maintain an organization that is flexible enough to jump when necessary.