Living On the Fault Line.Business Editors NEW YORK--(BUSINESS WIRE)--May 12, 2000 Managing for Shareholder Value in the Age of the Internet By Geoffrey A. Moore New Management Paradigms for a New Century Geoffrey Moore, author of Crossing the Chasm and Inside the Tornado, two best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best works that helped guide the high-tech revolution, now turns his attention to the most important question for business in the early 21st century: How can companies be managed successfully in a time when the "new economy" seems to be shattering all the old truths that a generation of corporate managers lived by? The fault line upon which all companies and their managers must learn to live is the Internet - an earth shaking phenomenon that is undermining and destabilizing market positions of both established Fortune 500 companies and recent Internet high fliers. In this new world, old management truths are under intense scrutiny. Business models that worked admirably until the last decade of the 20th century are being challenged. The Internet has invaded every sector of commerce, overturning established relationships, reengineering markets, attacking long-established price points and disintermediating long-standing institutions. What should management do when it is suddenly competing with companies no one had ever heard of a few years or even a few months ago? In a book that will reset the management agenda in the Age of the Internet, Moore shows how a focus on stock price - even in a highly volatile market - provides both guidance and leverage for understanding the shifting nature of competitive advantage, and for making necessary changes in organizations heretofore impervious im·per·vi·ous adj. 1. Incapable of being penetrated: a material impervious to water. 2. Incapable of being affected: impervious to fear. to change. In Fault Line, Moore provides a blueprint for old economy franchises making a transition to the new economy, as well as new economy companies moving forward in highly unpredictable times. He prescribes a new agenda for management teams that includes: -- Finding a common ground for understanding how and why the capital markets are valuing companies as they are and how management can use these valuations as guides for setting competitive strategy. -- Reinventing strategy itself in the context of technology-impacted markets, drawing on the models honed by the most successful high-tech companies of the past decade. -- Gaining maximum leverage from scarce resources by focusing on core activities and outsourcing everything else. -- Freeing management teams from the paralysis of the innovator's dilemma - when good management faces disruptive technology A new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Music CDs all but wiped out the phonograph industry within a few years, and digital cameras are destined to eliminate the film industry. - by intervening at the board and top executive levels. -- Creating a corporate culture that can absorb future disruptions and react with speed and flexibility. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Bob Herbold, Executive Vice President and COO of Microsoft, "When you live on the fault line, you have to reinvent re·in·vent tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" yourself every single day. In the past year we have been incorporating ideas from this book into the strategy training portions of our executive development program, and the feedback has been tremendous." Adds John Chambers John Chambers could be any of the following people:
Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , "Living on the Fault Line reveals Moore's understanding of fast growth industries and offers insight to help us manage shareholder value in today's Internet Economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. ." Today, practically every company is living on the fault line. By synthesizing Moore's ground-breaking earlier work on the dynamics of technology-based markets, with a new focus on managing publicly held corporations for shareholder value, Fault Line provides a highly prescriptive guidebook to managing the disruptive forces of the new economy. In Crossing the Chasm and Inside the Tornado, Geoffrey Moore created a new language for navigating the technology adoption life cycle. In The Gorilla gorilla, an ape, Gorilla gorilla, native to the lowland and mountain forests of western and central equatorial Africa. It is the largest of the apes, the males reaching a height of 5 to 6 ft (150–190 cm) with a 9-ft (144–cm) arm spread. Game, written with Paul Johnson Paul Johnson may refer to:
ABOUT THE AUTHOR Geoffrey A. Moore is chairman and founder of the Chasm Group, where he still actively consults. He serves as a venture partner at Mohr Davidow Ventures. He has been named one of the Elite 100 leading the digital revolution by Upside magazine. ABOUT THE BOOK: TITLE: LIVING ON THE FAULT LINE SUBTITLE sub·ti·tle n. 1. A secondary, usually explanatory title, as of a literary work. 2. A printed translation of the dialogue of a foreign-language film shown at the bottom of the screen. tr.v. : Managing for Shareholder Value in the Age of the Internet AUTHOR: Geoffrey A. Moore PUBLICATION DATE: June 1, 2000 ISBN ISBN abbr. International Standard Book Number ISBN International Standard Book Number ISBN n abbr (= International Standard Book Number) → ISBN m NO.: 087308880 PRICE: $27.00 We always appreciate two tearsheets of any reviews or mention of HarperBusiness books or its authors. About Geoffrey Moore Geoffrey Moore is a managing director with The Chasm Group, a consulting practice based in California that provides market development and business strategy services to many leading high-technology companies. He is also a Venture Partner with Mohr Davidow Ventures, a California-based venture capital firm specializing in specific technology markets, including e-commerce, internet, enterprise software, networking and semiconductors. Moore provides market strategy advice to their high-tech portfolio companies. Moore's first book, Crossing the Chasm, initially published in 1991, adds compelling new extensions to the classical model of the Technology Adoption Life Cycle. He introduced his readers to a gap or "chasm" that innovative companies and their products must cross in order to reach the lucrative mainstream market. A revised edition was released in July 1999 to update industries and case-study companies. The sequel, Inside the Tornado, published in 1995, provides readers with insight into how to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the potential for hypergrowth beyond the chasm. This second book sorts out how the market forces behind the Technology Adoption Life Cycle demand the need for radical shifts in market strategy. The Gorilla Game, Geoff's third book, was originally released in March of 1998 with a revised version Revised Version n. A British and American revision of the King James Version of the Bible, completed in 1885. Revised Version Noun , including a new chapter on internet investing, released August of 1999. This book was co-authored with Chasm Group managing partner and high-tech marketing strategist Tom Kippola, and stock investment guru and BancAmerica Robertson Stephens analyst Paul Johnson. The Gorilla Game combines the methodology Moore introduced in Crossing the Chasm and Inside the Tornado, with Johnson's stock market valuation models and Wall Street expertise, and Kippola's high-tech investment experience. Prior to founding The Chasm Group in 1992, Geoff was a principal and partner at Regis McKenna This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Inc., a leading high-tech marketing strategy and marketing communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales company. For the decade prior, he was a sales and marketing executive at three different software companies. Praise for Living on the Fault Line "Managers who have wondered whether today's seemingly irrational competitive and capital market behavior might become 'normal' again need to read Living on the Fault Line. Moore shows convincingly that technology and capital market efficiency have fundamentally changed not just the reality that all managers face, but have changed the way they need to define, measure and manage success. This is a great book." Clayton Christensen, author, The Innovator's Dilemma: When New Technologies Cause Great Companies to Fail "When you live on the fault line, you have to reinvent yourself every single day. In the past year we have been incorporating ideas from this book into the strategy training portions of our executive development program, and the feedback has been tremendous." Bob Herbold, Executive Vice President and COO, Microsoft "Having lived on the fault line as a senior executive at IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , BBN (BBN Technologies, Cambridge, MA, www.bbn.com) A consulting firm that participated in the development of some of the most extensive networks in the world, including ARPANET, which evolved into the Internet. It was founded in 1948 as a consulting service in acoustics by Dr. , GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) , and now Akamai, I must say that this book, unlike any other I have ever read, clearly lays out the blueprint for how old economy franchises can make a full transition to the new economy. It is also a great guide for those of us leading new economy companies as we chart our paths forward." George Conrades, Chairman and CEO, Akamai "Cisco is committed to creating unprecedented value and opportunity for our shareholders, customers, partners and employees. Geoffrey Moore's new book, Living on the Fault Line, reveals his understanding of fast growth industries and offers insight to help us manage shareholder value in today's Internet Economy." John Chambers, CEO, Cisco Systems "Living on the Fault Line cuts through the hype of the Internet economy. It gets at where real benefits lie, which is in applying our premium resources directly on increasing our competitive advantage and taking waste out of the total value chain. Now Geoffrey Moore tells us how to navigate the river to real sustainable value Sustainable Value Sustainable Value is an approach to measure and manage sustainability performance. The concept was developed by researchers who are working today for Queen's University Belfast creation." Erik Fyrwald, Vice President,e-commerce, Dupont Corporation; CEO, CapSpan "As CEO at both Sybase and Commerce One, I can attest to the power of what Geoff Moore calls the fault line to disrupt existing markets and reset the rules of competition in a flash. Geoff's new book, like his prior ones, gives executives in the middle of the fray a frame of reference for setting new strategies and changing old ways." Mark Hoffman, President and CEO, Commerce One "In our research for Customer.com we discovered again and again companies that wanted to Internet-enable their systems when their real challenge was to Internet-enable their heads. This book is a much-needed contribution to that effort." Patricia Seybold, Founder and CEO, Patricia Seybold Group; author Customers.com "Geoff's book provides both vocabulary and guidance to help our company and its associates leverage the power of the new economy." Thomas G. Stemberg, Chairman of the Board and CEO, Staples Inc. "New economies require new rules. If you don't read this book, you're not going to be the Billionaire next door. And it will be your fault, not Geoffrey's or mine." Guy Kawasaki Guy Kawasaki (born 1954), one of the original Apple employees responsible for marketing of the Macintosh in 1984, is a Silicon Valley venture capitalist. He is noted for bringing the concept of evangelism to the high-tech business, focusing on creating passionate user-advocates for , CEO, Garage.com "At NEON managing for shareholder value is a way of life. We have experienced the extremes of the fault line as we and the global capital markets work to find a consistent and enduring basis for shareholder valuations. In the process, Geoff's models have brought clarity and insight to both our internal and external communications. Going forward we see them as key to shaping our strategy for the new economy." Rick Adam, Chairman and CEO, New Era of Networks (NEON) "From the epicenter of technology, Silicon Valley, comes another 'must read' from Geoffrey Moore, the man who crystallized crys·tal·lize also crys·tal·ize v. crys·tal·lized also crys·tal·ized, crys·tal·liz·ing also crys·tal·iz·ing, crys·tal·liz·es also crys·tal·iz·es v.tr. 1. the challenges of marketing high tech in Crossing the Chasm. Fault Line will compel executives to examine the core value of their organizations under the harsh light of the new economy and guide them with sound strategies for surviving the onslaught of the dot.coms." Tom Kendra, Vice President, Software, Asia Pacific IBM Corporation "At Viant we help companies of all kinds build new economy digital businesses. Most traditional companies are greatly challenged in transforming their cultures to support the new Internet See Web 2.0 and Internet2. business model. Geoff Moore's new book offers a practical blueprint for building a culture of innovation and execution so vital to establishing enduring success in the Internet Age." Bob Gett, President and CEO, Viant "Geoffrey Moore once again demonstrates his ability to take a complex set of business dynamics and forge them into a clean, coherent model. He outlines the effect that the transition from a traditional economy to the new economy has on companies - their internal behavior, their interactions within and across industry lines, and their perception by Wall Street. I found it an enormously helpful and engaging read." Aart J. de Geus, Chairman & CEO, Synopsys, Inc. "Geoffrey Moore looks beyond today's e-buzz to help executives understand the fundamental changes needed to morph morph 1 n. An allomorph. [From morpheme.] morph 2 n. from the old economy to the new. Time is more valuable than money, assets don't matter, and market cap counts more than your P&L. Geoffrey gives hope for bricks and mortar A store (shop, supermarket, department store, etc.) in the real world. Contrast with clicks and mortar. companies, but the changes required will make most CEOs' hearts beat a little faster." Bob Peebler, President and CEO, Landmark Graphics Corporation Landmark Graphics Corporation was created in Houston in 1982 by John Mouton, Andy Hildebrand, H. Roice Nelson, and Bob Limbaugh, to develop the first system for interpreting 3D data from seismic surveys for the oil and gas industry. "This book is a must read for CEOs and their executive teams who are wondering what e-business is all about. According to Geoffrey Moore, you had better start shedding non-core activities quickly or your company will become a victim of the new economy. Geoffrey develops a model that provides the organizational flexibility and speed to navigate the choppy chop·py 1 adj. chop·pi·er, chop·pi·est Having many small waves; rough: choppy seas. [From chop1. waters of the Internet Age." Dick Cheney, Chairman and CEO, Halliburton Company "At HP, we set a 3-year business plan that was adjusted annually. At Bay Networks, we set an annual business plan that was adjusted quarterly. Now, at Alteon Websystems Alteon WebSystems Inc. NASDAQ: ATON, formerly known as Alteon Networks, "The Server Switching Company", was an Internet infrastructure company based in San Jose, California. Alteon was founded in 1996 by Mark Bryers, John Hayes, Ted Schroeder and Wayne Hathaway. , we set a multi-quarter business plan that is adjusted almost every month! In Living on the Fault Line, Moore details a prescription for a company to mutate mu·tate intr. & tr.v. mu·tat·ed, mu·tat·ing, mu·tates To undergo or cause to undergo mutation. [Latin m its corporate genetic makeup in order to effect all these changes with a single company confine. He hits the nail on the head, again." Dominic P. Orr, Chairman, CEO and President, Alteon Websystems, Inc. "Using the Internet, someone is revolutionizing your industry. It's either you, one of your traditional competitors, or a dot.com you've never heard of until it's too late. Since the Internet fault line is going to be part of the landscape, you better find out how to survive on it. And there is no better person to teach you about it." Paul R. Gudonis, CEO, Genuity Inc. "In Living on the Fault Line, Geoff Moore de-mystifies the angst and opportunity felt by management teams of established enterprises, large and small, as they wrestle with how to survive and prosper in the conundrum conundrum A problem with no satisfactory solution; a dilemma , that is the new Internet economy. Moore's battleplan for success in the Internet Age is realistic and doable, as well as entertaining to read. A 'must read' for any executive striving for success in an Internet business, which is all executives !" Jeff Miller
Jefferson B. "Jeff" Miller (born June 27, 1959), American politician, has been a Republican member of the United States House of Representatives since 2001, representing , President & CEO, Documentum, Inc. "Fault Line crystallizes, for the first time in a comprehensive and instructive manner, the forces driving the incredible market caps of companies in technology-enabled markets. While on the surface these valuations appear irrationally exuberant, this book shows why they may instead be the leading indicators Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. of the winners and losers in the new economy. Geoffrey Moore articulates in a clear, compelling, and often entertaining manner, the links between disruptive technology innovation, competitive advantage and market cap. This book is a 'must read' for management teams in big companies and small companies alike. For being blind to these issues could cause the two to switch places." Rod Randall, Vice President, Lucent Internetworking Systems |
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