The separate vertical product segments of the electronics industry are converging into a Net World Order of multifunctional product categories. We lay out a stylized value chain for analyzing firm performance in the various horizontal segments of the Net World Order. We measure firm performance with ROI data for the 1990s, and find that high-performing companies can emerge in any segment. We then turn our attention to the future and sketch the key elements of value creation and capture in the emerging Net World Order marketplace. Alliances and customer relationships are increasingly important, while standards ownership and vertical integration are less important than in the PC era.