This volume is a report on research, the chapters produced as part of the five-year Management in the 1990s Program at MITs Sloan School of Management. Funded by a group of 12 industrial and governmental sponsors from the United States and Britain, the program and this book is intended to accompany and support its companion, "The Corporation of the 1990s." To remain competitive in the 1990s, management will have to be innovative, develop new products and services, and respond to rapidly changing markets. Innovation is a response to changes in the market and in technology. As the market changes, firms are driven to innovate with new products and services, frequently seeking out new technology to accomplish this. Rapidly changing technology creates both new opportunities and changes in market structure. Markets are changing rapidly, while the rate of change in information technology is estimated at 20-30% per year. Information technology is now ubiquitous--integral to internal business processes, product design, delivery of services, interorganizational relations--shrinking the effects of time, distance, and altering the very nature of work. This book is intended to directly disseminate the ideas generated, to help organizations manage the impact of information technology and rapid change in markets, and most importantly, to stimulate further thought by both academics and managers.