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By J.M. Juran
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Extra resources for Management of inspection and quality control
In the future, cotton shirts, bottles of vitamins, chain saws, and the rest of the industrial objects in the world will also obey the law of plentitude as the cost of producing an additional copy of them falls steeply. Proprietary, or “closed,” systems were once rare because industrial systems were relatively uncomplicated. Proprietary systems rose in popularity as advancing technology made it difficult to replicate a system without assistance or encroaching on patents. The creators of a closed system made a nice living.
They plotted sales of first-run movies between May 1985 and January 1986 and discovered that “the only reliable predictor of a film’s box office was its performance the previous week. ” The higher it was last week, the more likely it will be high this week— an increasing returns loop fed by word of mouth recommendations. The economists, Art De Vany and David Walls, claim these results mirror a heavy duty physics equation known as the Bose-Einstein distribution. ” In other words, it follows the logic of the net: increasing returns and persistent disequilibrium.
As AnnaLee Saxenian, author of Regional Advantage, notes, Silicon Valley has in effect become one large, distributed company. People job-hop so frequently that folks “joke that you can change jobs without changing car pools. Some say they wake up thinking they work for Silicon Valley. ” This trend seems likely to extend further. We are headed into an era when both workers and consumers will feel more loyalty to a network than to any ordinary firm. The great innovation of Silicon Valley is not the wowie-zowie hardware and software it has invented.