Monday, April 15, 2013

Precursors of modernity

    Talk about precursors in business or in a sport over 2000 years old is nothing less than a great daring .... But we have to start somewhere and I chose these two characters because I understand that they were the first stones of chess and industry that we met at the s. XX.

Henry Ford  (1863-1947).

    He was the first car manufacturer who used the techniques of mass production and the assembly line, at the same time  perfected the rudimentary previous models. 

   Henry Ford introduced its construction-related developments in series and providing economic benefits to future users (the car went on sale for just $ 200). The main idea of Ford was that if mass produced cars, automobile production costs would be reduced considerably, which also contribute to lower the selling price on the street, a fact which would increase demand, market and profits.

   In early 1908, the first set of his new Ford-T at a single price and market revolutionary, $ 500, quite low compared to the $ 2,000 represented the average price of a car at the time. Success was swift and sales increased fivefold.

  From a strictly business point of view, the secret of Henry Ford was to have managed to combine three decisive factors.

  • Standardization and mass production of all the parts that made up the vehicle
  • The second factor was giving their workers a wage high enough (his competitors said "exorbitant "), five dollars a day, which achieved two purposes at once: to increase the standard of living of these, that immediately went to buy a Ford-T, and further lower selling prices. Employees&customers.
  • Finally, Ford established a nationwide dense network of dealers, sellers and agents advertising experts, and encouraged other revolutionary payment system: the car buying in installments.

 

 

Wilhelm Steinitz (1836-1900).

 World Champion from 1886 to 1894. Defender of the scientific methods applied these as the key to solve the problems presented on the board.

   First dissected positions with its components, separating the essential signs which might be drawn solid strategic principles ... this seems so simple but it was a turning point in the history of chess.

   Calls "Steinitz rules" are a set of precepts that marked a major change in the game. These ideas-guide explains the various scenarios of fighting chess and answer basic and fundamental questions: why you win?, why you lose?, why  attack?, when attacking?, why defend?, how to attack?, how to defend?, what is the balance?, what to do in a balanced situation? and ultimately provides a framework where thinking and creativity of each player can develop and manifest successfully 

A summary of the essentials of the same:

  • The dominant side can attack, and must do so, otherwise, you risk losing the advantage. You must attack the weakest point of the opponent's position.

  • The effect of the weak and strong points is crucial, everything else is of secondary importance.

  • Principle of proportion: The plan is everything and the time issue has secondary importance. In general the "rhythm" of the attack to be reduced more as less pronounced the advantage.

  • The one on the defense has to want to defend and make temporary concessions

  • Throughout balanced position, the two sides maneuver trying to tip the balance in their favor. But a balanced position also generates other balanced, if players play with precision. Must play to maintain the cooperation of their pieces 

  These rules are  fully applicable to acompetitive market, where the position of the company has market advantage, should not relax and keep "attacking" to prevent competition regain ground. In the next post we will see examples in both directions

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