Weekly Report on

Technology and the Economy


16 Years Providing Weekly Foresight


The most accurate predictive letter in computing and telecommunications,
read by industry leaders worldwide.


SNS Subscriber Edition Volume 15, Issue 40 Week of October 8, 2012



Special Letter:

Capability Leverage:

A New Toolset and Mindset for Tomorrow




In This Issue




Special Letter:

Capability Leverage


How We Got Here

A New Leverage for a Rapidly

Changing World

Opportunity 1: Better Utilizing Incumbent Data

Opportunity 2: Driving Small-Firm Growth Without M&A

Opportunity 3: Leveraging Capabilities Across Geographies

The Meta-Opportunity: Capability Leverage and Job Creation

The Technology Factor: Making Capability Leverage a Reality

Mindset Matters: Complications to Capability Leverage


About John Hagel III


Upcoming SNS Events

& Media Links


In Other House News...


How to Subscribe

May I Share This Newsletter?

About SNS

About the Publisher

Where's Mark?


 [Please open the .pdf attachment for best viewing.]


By John Hagel III



See "Upcoming SNS Events" below for details on all SNS programs and registrations.


If you'd like to be more involved in SNS events as one of our select partners or sponsors, please contact Sharon at: or 435-649-3645.




Publisher's Note: John Hagel is a global expert on technology trends in the enterprise, and when he brings us a new way of understanding the limits imposed by current economic conditions, and how to maximize growth within those limits, CEOs will want to pay attention.


I think John has captured the essence of several trends at once here, ranging from the current R and D-purchase model espoused by large pharma companies, through the Cisco-like acquisition-based models for horizontal movement into markets, and through the newer cooperative models that small and large companies are discovering today. As with Eric Openshaw's piece on capturing talent benefits from outside the organization, John here expands this idea of "Capability Leverage" to aim at the sweet spot in the most-developed abilities of external organizations.


While I expect this may, in times of general economic growth, return at least somewhat to the M&A behaviors of the past, their record is so dubious that members will want to look at John's proposals as long-term solutions. With a 75% average failure rate in acquisitions today, raising access to external capabilities without such risk to finance and culture seems a more intelligent, and prudent, path for corporate leaders to follow.

- mra.


Member's please login to view the complete issue.


Not a Member? Subscribe now to view the complete issue.