The Pebble and the Avalanche

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Current Revolutions in Business and Technology

by Dr. Moshe Yudkowsky,

author of The Pebble and The Avalanche: How Taking Things Apart Creates Revolutions

 

Thu, 2006-Oct-26, 16:13

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Fiat Avoids Kodak's Mistake

One mistake Kodak made during the digital photography revolution: Kodak failed to capitalize on its superior knowledge of chemistry. In theory Kodak could have sold ink to all the printer manufacturers; in practice Kodak kept its ink to itself and the company nearly foundered.

Fiat — a "mess" just two years ago — hired a new chairman who broke all the rules, including the sacrosanct rule that auto makers do not sell parts to their competitors. Instead, Fiat

signed a deal to produce small cars jointly with Ford, at a Fiat plant in Poland. Ford would get a small car powered by Fiat's engine and built on a Fiat platform. Fiat, in effect, would get to sell the use of some of its technology and facilities, collecting more revenue from its plants.
This is straightforward disaggregation, and Fiat earned desperately-needed cash. To leave a comment, please fill out this form.

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