Sublime

accumulation of hundreds of culturally induced behavioral changes will sometimes add only two to three points to profit. But when these two to three points are reinvested in R&D for new products, for lower-cost processes, or for service to the customers, the impact is multiplied tenfold.

As you think about your own business, ask yourself: Am I managing for market share, or for profit? Is the market share I own profitable and alive, or is it profitless and dead?

This is the first lesson in this book: economic security isn’t a function of what you earn but what you keep and knowing how much is enough for you.

In value migration, customers move from A to B, and the profit zone moves from A to B with them. The incumbent stays at A. The newcomer builds a business design to go to B. Market value shifts from the incumbent to the newcomer. Investors endorse the newcomer, because that is where the profit growth will be.

Today, reinventor companies employ a more extensive repertoire of value capture mechanisms than they ever have before: financing, ancillary products, solutions, downstream participation in the…

Some highlights have been hidden or truncated due to export limits.