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A comment on Management's Dirty Little Secret.
o In a world of commoditized knowledge, the returns go to the companies who can produce non-standard knowledge.
o Success here is measured by profit per employee, adjusted for capital intensity.
o What matters is its relative "share of customer value" in the final product or solution, and its cost of producing that value.
o The greater your share of differentiation is the greater your bargaining power with business partners is.
o The lower your cost to produce that value is, the bigger your profits are.
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o In a world of commoditized knowledge, the returns go to the companies who can produce non-standard knowledge.
o Success here is measured by profit per employee, adjusted for capital intensity.
o What matters is its relative "share of customer value" in the final product or solution, and its cost of producing that value.
o The greater your share of differentiation is the greater your bargaining power with business partners is.
o The lower your cost to produce that value is, the bigger your profits are.