Why Industrial-Era Companies Are Dying

, and focuses most of its attention on extracting value from the industrial-era firms while placing its main bets on digital, as shown in Figure 2.

Meanwhile vertical world of industrial-era management likes to defend itself as “the adults in the room.” An interview with Sam Palmisano, former CEO of IBM, in"You’ve got companies in great runs right now, the Googles and the Facebooks. Good ideas, great returns, but then all of a sudden, you need an act two. Well, jeez, is act two going to propel you from $30 billion to $100 billion? That’s a little tougher. It’s the Microsoft challenge.

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