Subject: Re: Larry Ellison on FSBs
From: Santiago Gala <>
Date: Tue, 25 Apr 2006 20:42:42 +0200
Tue, 25 Apr 2006 20:42:42 +0200
El mar, 25-04-2006 a las 11:10 -0700, Ben Tilly escribió:
> 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.)

It is a very interesting book. Kind of a recurring "worse if better",
both with hardware and software.

It explains a lot of things I had found puzzling before reading it.

Mor to the point, about LE: I used to think (like a mathematician) that
once I knew that something was going to happen, it was already there. It
is not true. Time, in economy, makes a lot of a difference.

Delaying the rate of commoditization can mean a lot of money, and time
to shift to different businesses, for Bill Gates, Larry Ellison, etc.


> Cheers,
> Ben
Santiago Gala <>
High Sierra Technology, SLU

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