The companies that fully capitalize on the promise of the Internet will be those that look at their businesses as more than building and selling products and services. In the virtual economy, collaboration is a new competitive imperative.
It used to be that you would do things yourself... you felt you had to have control and you could not necessarily get the other things from other partners. But now... it is much easier to connect suppliers and customers... we no longer have these closed business systems, we have more collaborative business systems.
If you had asked me seven or eight years ago whether there is such a thing as a company that's growing too fast, I probably would have said no. All growth is good and you cannot grow a company too fast. But we learned that this is absolutely not true � there is a level of growth that is not only too fast but dangerous and deadly to a company.
I believe there's an inverse correlation between the quality of the information you have and the amount of inventory you need. Most businesses tie up a tremendous amount of assets anticipating things that may not happen. If they had a system that was customer demand driven, they would be much more efficient.
One of the struggles many companies face is overcoming the desire to invent everything themselves. Even today, you see a lot of companies falling back on the idea that �my baby's the most beautiful in the world and I'm not going to accept anybody else's.� This can get in the way of logical business thinking.
If you limit a company by its structure or by the people in the company, you will, by definition, limit the full potential of that business. It sounds basic, but a lot of companies don't follow the idea that the structure should be last and not first.
Instead of vertical integration, we have a kind of virtual integration that is taking hold. It shows up in the efficiency of companies. Our company, for example, has a return on invested capital of roughly 290 per cent which... is significantly above our cost of capital... This says there is a fair bit of competitive power in a model like this.
On Destiny: "Our destiny exercises its influence over us even when, as yet, we have not learned its nature: it is our future that lays down the law of our today."
Human, All Too Human