Subject: Re: Larry Ellison on FSBs
From: "Ben Tilly" <>
Date: Tue, 25 Apr 2006 11:10:24 -0700

 Tue, 25 Apr 2006 11:10:24 -0700
On 4/25/06, Thomas Lord <> wrote:
> Ben Tilly wrote:
> > Oddly enough Clayton Christensen used IBM as an example.  They are
> > notable in two ways.  The first was in failing to get into the micro
> > market.  The second is in successfully getting into many other markets
> > since.  He used their success in the PC business as an example of how
> > to handle disruptive innovation.  Their strategy was to create a
> > spinoff business that (very important) did NOT get much funding, and
> > was located at a different facility than their existing businesses.
> >
> So, haven't read the book your pimping.  It sounds good but it sounds like
> advice about how to manage things along with the banal observation
> that poor mgt. happens a lot.   You can't get from there to conclusions
> about how Oracle is doomed.

Then you heard wrong.  It is a book about how traditional  good 
management can be a form of corporate suicide in certain situations,
and how various strategies for dealing with those situations have
turned out.

In fact he explains, in detail, how managing by accepted principles
forces companies to go down a dead end and off the cliff.  And why it
is so hard to avoid doing that.  (Even if people at the top recognize
it, which they often do, their organizations are structured to fight
against moving in the needed direction.  And they can't restructure
the organization without losing their existing profitable businesses.)