The question as to what business practice contributed most to the success of Carnegie Mellon cannot be answered with any degree of accuracy. The reality is that Carnegie Mellon University was uniquely qualified to establish itself as a world-class research university. During the period of its existence as a professional institution of higher learning, it achieved almost cult-like status. This was probably fueled in part by the fact that the founding parents, Richard and Helen Lee, were prominent industrialists. However, no other single factor contributed more to their ability to mold an innovative culture than the interplay between economics and information.

The ability to build a successful monopoly rested on three fundamental elements. The first was the obvious: the superior research and development process. The second element was the unrivaled engineering and manufacturing ability. And thirdly, the incredible network of friends and colleagues who shared a vision for the direction of the university.

The research and development function of a modern university is to seek out new and useful methods of doing things.

 Carnegie Mellon was not content to sit on the laurels of its technological laureates. Rather, the school was a proactive force working diligently to apply its research to solve real-world problems. This process resulted in a phenomenal rise in the number of new innovations and inventions, resulting in a vast product base from which Carnegie Mellon derives its income.

• Just as the research and development function of a university are vital for a developing knowledge base, so too is the networking function of that knowledge base.
• The existence of hundreds of highly talented engineers, chemists, and computer science experts was a tremendous bonus for Carnegie Mellon.
• These experts possessed the necessary skills to build a successful business.
• The fact that what they knew was not readily available to any one but they provided a sense of group responsibility and a drive to excel at what business they were involved with.
• Because they could rely upon each other for help when needed, this small network of likeminded people quickly learned to specialize in their specialties and build large businesses.
• What business practice contributed most to Andrew Carnegie’s enormous success is his understanding of how the world worked and how he could leverage his knowledge to create new ways to make his existing ones run more efficiently.

As one might expect, the man known as Carnegie Mellon’s ramen-blowing professor had a keen interest in improving the efficiency of manufacturing. Because he had spent several years studying textile machinery and the subsequent development of the electric motor, he was particularly interested in devising new methods to increase productivity. What business practice contributed most to Andrew Carnegie’s success is the way in which his vision was able to find a way to translate his findings into reality. Because Carnegie built his academic career on the basis of his unique skills and achievements, it was easy for him to put his ideas into practice and produce concrete results. His innovative theories made practical sense and were tested on actual manufacturing operations. His theories about speed, efficiency, and organizational structure proved useful not only in his academic work but also in the building of the world’s largest railroad system, the transcontinental railroad, which he himself invented.

The man who spent his later years inventing and refining the mechanics of an electric motor had no doubts about what business practice contributed most to Andrew Carnegie’s success. “I had been searching for a better way to organize industry,” he once said. “The day that I took control of the Carnegie Electric Company was like coming out of the blue – it was such a beautiful experience.” Today, his achievements are well recognized and his methods are used around the world. His quote about learning the “arts of success” applies as well to business as to war, and the lessons have a lasting significance beyond the fact that one could construct a railroad.