Re: Sustainable competition LO1651

Dr. Ivan Blanco (BLANCO@BU4090.BARRY.EDU)
Thu, 15 Jun 1995 12:44:38 -0400 (EDT)

Replying to LO1640 --

> From: Iris Berdrow <iberdrow@sms.business.uwo.ca>
> Date: Wed, 14 Jun 1995 19:12:00 -0400 (EDT)
>
> Replying to LO1634 --
>
> In response to David's comments:
>
> > In a non-monopolistic economy, I don't think either is
> > possible for longer than it takes to copy and reproduce whatever is
> > creating the advantage. ... in an environment of freely
> > and instantly available information, this advantage is only fleeting and
> > cannot be sustained.
>
> This suggests that competitive advantage only comes in the form of
> explicit information. What about tacit knowledge? Knowing how to do
> something and understanding why it works is sometimes a lot more important
> than knowing what to do. This is why the Japanese have such an edge on us
> when it comes to learning through partnerships. They recognize the
> underlying tacit gems and they exploit them. We don't seem to be as good
> at it.
> --
> Iris Tiemessen ::::::::::::::::::::::::::::::::::

This is very interesting! When I talk about what Deming and
others taught trhe Japanese, I always made reference to what the Japaneses
added to what was taught to them. They learn from American scholars about
the application of statistical approaches to quality control, but they
added the rest. I think that that rest made a whole that has been so
difficult for us to understand. We get very upset by the results some
successful Japanese companies have achieved, and started to first blame it
of low cost labor, stealilng ideas from us, or whatever. We don't seem to
able to see the "tacit gem." I think that Deming saw that gem! I believe
(and this is only my guess), that he got very frustrated because he could
not teach us to see the gem! He went to Japan as a scientist, and came
back as a person who knew applied science and could see that "tacit gem."

Part of the understanding missing among us in the U.S., is that
the business game, now global, is an infinite one (Carse's notion of
finite and inifinite games). In this new inifinite game, there can be
losers, but there can not be winners. There can be a company that gets
ahead of the pack, but that position attracts even more competition that
pushes the pushes the leader out the way, and someone else would get the
leadership position. That's why innovation, creativity, etc. have become
so important in the game today. The new game does not have a fixed set of
rules, and the rules might even change (Carse again) as the game is
played!

Ivan,

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"Las naciones marchan hacia el termino de su grandeza, con
el mismo paso que camina su educacion." "The nations march
toward their greatness at the same pace as their educational
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