Michael A. Cusumano

Today, Microsoft commands the high ground of the information superhighway by owning the operating systems and basic applications programs that run on the world's 170 million computers. Beyond the unquestioned genius and vision of Bill Gates, what accounts for Microsofts astounding success?Drawing on almost two years of on-site observation at Microsoft headquarters, eminent scientists Michael A. Cusumano and Richard W. Selby reveal many of Microsoft's innermost secrets. This inside report, based on forty in-depth interviews by authors who had access to confidential documents and project data, outlines the seven complementary strategies that characterize exactly how Microsoft competes and operates, including the "Brain Trust" of talented employees and exceptional management; "bang for the buck" competitive strategies and clear organizational goals that produce self-critiquing, learning, and improving; a flexible, incremental approach to product development; and a relentless pursuit of future markets.Cusumano and Selby's masterful analysis successfully uncovers the distinctive way in which Microsoft has combined all of the elements necessary to get to the top of an enormously important industry -- and stay there.

A trio of experts on high-tech business strategy and innovation reveal the principles that have made platform businesses the most valuable firms in the world and the first trillion-dollar companies. Managers and entrepreneurs in the digital era must learn to live in two worlds—the conventional economy and the platform economy. Platforms that operate for business purposes usually exist at the level of an industry or ecosystem, bringing together individuals and organizations so they can innovate and interact in ways not otherwise possible. Platforms create economic value far beyond what we see in conventional companies.The Business of Platforms is an invaluable, in-depth look at platform strategy and digital innovation. Cusumano, Gawer, and Yoffie address how a small number of companies have come to exert extraordinary influence over every dimension of our personal, professional, and political lives. They explain how these new entities differ from the powerful corporations of the past. They also question whether there are limits to the market dominance and expansion of these digital juggernauts. Finally, they discuss the role governments should play in rethinking data privacy laws, antitrust, and other regulations that could reign in abuses from these powerful businesses.Their goal is to help managers and entrepreneurs build platform businesses that can stand the test of time and win their share of battles with both digital and conventional competitors. As experts who have studied and worked with these firms for some thirty years, this book is the most authoritative and timely investigation yet of the powerful economic and technological forces that make platform businesses, from Amazon and Apple to Microsoft, Facebook, and Google—all dominant players in shaping the global economy, the future of work, and the political world we now face.

The world's leading expert on the global software industry and coauthor of the bestseller Microsoft Secrets reveals the inner workings of software giants like IBM, Microsoft, and Netscape and shows what it takes to create, develop, and manage a successful company -- in good times and bad -- in the most fiercely competitive business in the world.In the $600 billion software industry it is the business, not the technology, that determines success or failure. This fact -- one that thousands of once glamorous start-ups have unhappily discovered for themselves -- is the well-documented conclusion of this enormously readable and revealing new book by Michael Cusumano, based on nearly twenty years of research and consulting with software producers around the world.Cusumano builds on dozens of personal experiences and case studies to show how issues of strategy and organization are irrevocably linked with those of managing the technology and demonstrates that a thorough understanding of these issues is vital to success. At the heart of the book Cusumano poses seven questions that underpin a three-pronged management framework. He argues that companies must adopt one of three basic business become a products company at one end of the strategic spectrum, a services company at the other end, or a hybrid solutions company in between. The author describes the characteristics of the different models, evaluates their strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a business as well as in good versus bad economic times. Readers will also find invaluable Cusumano's treatment of software development issues ranging from architecture and teams to project management and testing, as well as two chapters devoted to what it takes to create a successful software start-up. Highlights include eight fundamental guidelines for evaluating potential software winners and Cusumano's probing analysis, based on firsthand knowledge, of ten start-ups that have met with varying degrees of success.The Business of Software is timely essential reading for managers, programmers, entrepreneurs, and others who follow the global software industry.

Competing on Internet time means competitive advantage can be won and lost overnight. In this penetrating analysis of strategy-making and product innovation in the dynamic markets of commercial cyberspace, bestselling Microsoft Secrets co-author Michael Cusumano and top competitive strategy expert David Yoffie draw vital lessons from Netscape, the first pure Internet company, and show how it employs the techniques of "judo strategy" in its pitched battle with Microsoft, the world's largest software producer.With a new afterword updating the events of the year following publication of the hardcover edition, Competing on Internet Time is essential and instructive reading for all managers, engineers, and entrepreneurs who want to succeed in ultra-fast-paced markets. Managers in every high-tech industry will discover a wealth of new ideas on how to create and scale up a new company quickly; how to compete in fast-paced, unpredictable industries; and how to design products for rapidly evolving markets.

As we continue in an era of simultaneous innovation and commoditization, enabled by digital technologies, managers around the world are asking themselves "how can we both adapt to rapid changes in technology and markets, and still make enough money to survive--and thrive?"To provide answers to these important and urgent questions, MIT Sloan School of Management Professor Michael Cusumano draws on nearly 30 years of research into the practices of global corporations that have been acknowledged leaders and benchmark setters--including Apple, Intel, Google, Microsoft, Toyota, Sony, Panasonic, and others in a range of high-technology, services, and manufacturing industries. These companies have also encountered major challenges in their businesses or disruptions to their core technologies.If we look deeply enough, he contends, we can see the ideas that underpin the management practices that make for great companies, and drive their strategic evolution and innovation capabilities.From his deep knowledge of these organizations, Cusumano distills six enduring principles that he believes have been--in various combinations--crucial to their strategy, innovation management practices, and ability to deal with change and uncertainty.The first two principles--platforms (not just products), and services (especially for product firms)--are relatively new and broader ways of thinking about strategy and business models, based on Cusumano's latest research. The other four--capabilities (not just strategy or positioning), the "pull" concept (not just push), economies of scope (not just scale), and flexibility (not just efficiency)--all contribute to agility, which is a mix of flexibility and speed. Many practices associated with these ideas, such as dynamic capabilities, just-in-time production, iterative or prototype-driven product development, flexible design and manufacturing, modular architectures, and component reuse, are now commonly regarded as standard best practices.These six enduring principles are essential in a new world dominated by platforms and technology-enabled services.

Illustrates the benefits of multi-project management

From the acclaimed MIT Sloan Management Review comes this compendium of cutting-edge thinking about corporate strategy. Focusing on strategic imperatives of the new economy, leading thinkers in the field present their views in four general strategy and value creation; flexibility in a volatile world; strategy making in uncertain times; and strategies for growth in fast-paced markets. Strategic Thinking for the New Economy shows that designing a successful strategy is a never-ending quest--and that effective strategic thinking is a process of continuously asking questions and thinking through issues in a creative way. Included among the book's many expert contributers are Christopher A. Bartlett, Henry Mintzberg, Richard T. Pascale and C. K. Prahalad.

Though Japan has successfully competed with U.S. companies in the manufacturing and marketing of computer hardware, it has been less successful in developing computer programs. This book contains the first detailed analysis of how Japanese firms have tried to redress this imbalance by applying their skills in engineering and production management to software development. Cusumano focuses on the creation of "software factories" in which large numbers of people are engaged in developing software in cooperative ways--i.e. individual programs are not developed in isolation but rather utilize portions of other programs already developed whenever possible, and then yield usable portions for other programs being written. Devoting chapters to working methods at System Developing Corp., Hitachi, Toshiba, NEC, and Fujitsu, and including a comparison of Japanese and U.S. software factories, Cusumano's book will be important reading for all people involved in software and computertechnology, as well as those interested in Japanese business and corporate culture.

The world's leading expert on the global software industry and coauthor of the bestseller Microsoft Secrets reveals the inner workings of software giants like IBM, Microsoft, and Netscape and shows what it takes to create, develop, and manage a successful company -- in good times and bad -- in the most fiercely competitive business in the world. In the $600 billion software industry it is the business, not the technology, that determines success or failure. This fact -- one that thousands of once glamorous start-ups have unhappily discovered for themselves -- is the well-documented conclusion of this enormously readable and revealing new book by Michael Cusumano, based on nearly twenty years of research and consulting with software producers around the world. Cusumano builds on dozens of personal experiences and case studies to show how issues of strategy and organization are irrevocably linked with those of managing the technology and demonstrates that a thorough understanding of these issues is vital to success. At the heart of the book Cusumano poses seven questions that underpin a three-pronged management framework. He argues that companies must adopt one of three basic business become a products company at one end of the strategic spectrum, a services company at the other end, or a hybrid solutions company in between. The author describes the characteristics of the different models, evaluates their strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a business as well as in good versus bad economic times. Readers will also find invaluable Cusumano's treatment of software development issues ranging from architecture and teams to project management and testing, as well as two chapters devoted to what it takes to create a successful software start-up. Highlights include eight fundamental guidelines for evaluating potential software winners and Cusumano's probing analysis, based on firsthand knowledge, of ten start-ups that have met with varying degrees of success. The Business of Software is timely essential reading for managers, programmers, entrepreneurs, and others who follow the global software industry.

Google, Apple, Amazon, Facebook, Microsoft, Uber… Comment expliquer la prédominance mondiale de ces puissantes plateformes, leur quasi-monopole sur leurs marchés, leur croissance insolente ?Véritable sujet de société, les plateformes numériques exercent une influence extraordinaire sur nos vies personnelle, professionnelle et politique. Ce business model jusqu’à présent réservé aux entreprises les plus valorisées de la planète touche désormais tous les secteurs et de nouvelles plateformes ne cessent d’être créées. Alors, quelles stratégies adopter pour lancer une plateforme à succès ?Très exhaustif, émaillé d’exemples et de cas d’entreprises qui le rendent accessible, ce livre est le fruit de près de trente ans de recherches, d’idées et d’expérience. Il deviendra un réel atout pour comprendre l’un des plus importants phénomènes de notre temps et concevoir de futures entreprises numériques innovantes et plus équitables.« Que vous soyez un utilisateur désireux de comprendre la logique économique des plateformes, un chef d'entreprise désireux de maîtriser leurs stratégies ou un régulateur désireux de s'informer sur leur gouvernance, ce livre offre des réponses approfondies, convaincantes et actualisées par trois experts qui ont commencé à analyser les plateformes bien avant que le terme ne devienne connu. Ce traité est un véritable trésor. »Bengt Holmström, Prix Nobel d’économie 2016

Excerpt from Factory Concepts and Practices in Software DevelopmentSome researchers, however, have argued that structured engineering or factory processes of this sort have become possible only in industries when the rate of product innovations or changes decline to the point where firms can concentrate on process innovations related to cost reductions (abernathy and Utterback 1978, This requirement suggests that not all products or development processes are suitable for factory-oriented design and production systems, even though managers may have strong incentives to pursue more efficient modes of operations to compete effectively, especially in new industries with complex technologies.

Excerpt from Shifting EconomiesThe sequence ends with the production model if there is only one job one product, one customer. In this case, the product and the process needed to make it are customized in an organization one might call a job shop, by workers that in many ways resemble the craftsmen or artisans who made a variety of products before the advent of the modern factory in the l8o0s. If there is more than one potential customer, a firm can create different types of organizations aimed at replicating this design with varying degrees of efficiency and output volumes, from a few (batch production) to many (mass production). Developing a mass production or replication system may require a great deal of thought and money. Once this system is in place, the final production process might be relatively simple, such as pressing a phonograph record or copying a software program, or relatively difficult, such as assembling an automobile or a video recorder. Difficulty depends on the nature and number of the components, production or assembly processes, customer requirements, and other factors. From the customers' point of view, a product is customized only if it istailored for their specific needs. From the producers' point of view, however, there are several options. Some new designs they customize or make from scratch, while in others producers reuse designs, components, tools, processes, or particular people from other projects. Volume of replication, reuse or non reuse of components, process characteristics, as well as the coordination mechanisms needed to manage design and production, are some variables distinguishing different types of product-development and production organizations. These distinctions are important because observers from several fields, as well as managers, have used them for descriptive as well as prescriptive purposes to explain the principles behind both job shops and factories, and thus the logic which suggests what processes and methods of organization seem most appropriate for particular situations.

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of the imperfections in the preservation process, and hope you enjoy this valuable book.

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of the imperfections in the preservation process, and hope you enjoy this valuable book.

Google, Apple, Amazon, Facebook, Microsoft… qu’est-ce que ces entreprises ont en commun ? Comment expliquer leur prédominance mondiale, leur quasi-monopole sur leurs marchés respectifs, leur croissance insolente ? La réponse est à chercher du côté de leurs business model : toutes ces entreprises sont des plateformes.Ce livre examine le business model qui se cache derrière les entreprises les plus valorisées de la planète. Il recense les erreurs courantes commises par les plateformes, les challenges pour les entreprises traditionnelles qui tentent de rivaliser, les problématiques de gouvernance et de régulation, et les technologies émergentes qui risquent de rebattre les cartes. Les plateformes ne pourront faire l’économie d’une réflexion sur l’éthique et la justice.Très exhaustif, émaillé d’exemples et de cas d’entreprise qui le rendent très lisible et accessible, c’est le livre incontournable pour comprendre le phénomène business de notre temps.

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Excerpt from The "Software Factory" Reconsidered: An Approach to the Strategic Management of EngineeringCompanies then add the necessary customization to their products toward the end of the processing cycle, allowing producers to meet different customer.This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work.This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work.As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Excerpt from The Factory Approach to Large-Scale Software DevelopmentRecent developments in design and production technology have made it necessary to revise traditionally accepted tradeoffs between process flexibility and efficiency, as well as divisions between design and production. Rationalizing development processes without simply producing standardized goods or locking an organization into a single mode of production also combine product differentiation with process efficiency a rare but powerful combination of competitive skills (porter 1980.

Excerpt from Toshiba's Fuchu Software FactoryA typical example of the problem Toshiba faced was an order to develop the hardware and software for what would be the world's first fully automated thermal power generating station for Tokyo Electric, the Hirano Plant. Not only did this require software running into several millions of lines of code. To achieve safe and untended operation, hardware and software reliability requirements were extremely stringent, placing tremendous demand's on Toshiba software capabilities.

Excerpt from System Development CorporationThe new company required increasing numbers of programmers to build sage and then a variety of other projects, and expanded from about 450 employees in 1956 to 3500 by For example, after completing sage by the late 19505, sdc designed a command-control system for the u.s. Strategic Air Command, saccs (sac Command and Control). The operating system alone, which ran on an ibm mainframe, exceeded 3 million lines of code, an astounding length for a program at that time.6 soc then went on during the 19605 to build other complex software systems for the u.s. Government to handle air defense and communications, satellite control, various types of simulations, and the Apollo space missions. Projects for the private sector included information management systems for hospitals, the National Science Foundation, state governments, airports, libraries, and other customers.

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of the imperfections in the preservation process, and hope you enjoy this valuable book.

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of the imperfections in the preservation process, and hope you enjoy this valuable book.

This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it.This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work.Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. To ensure a quality reading experience, this work has been proofread and republished using a format that seamlessly blends the original graphical elements with text in an easy-to-read typeface.We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.