The evolution of products into intelligent, connected devices is revolutionizing business. In a November 2014 article, How Smart, Connected Products Are Transforming Competition, Harvard Business School professor Michael Porter and PTC president and CEO James Heppelmann looked at how this shift is changing the structure of industries and forcing firms to rethink their strategies. In this companion article, the authors look at the effects inside firms, examining the impact that smart, connected products have on operations and organizational structure. The new capabilities and vast quantities of data that smart, connected products offer are redefining the activities of the core functions of companies—sometimes radically. As software and cloud-based operating systems become integral to products, new product-development principles emerge, manufacturing components and processes change, and IT security becomes the job of every function. Companies need different skills and expertise, which creates new imperatives for HR. In the marketing function, the ability to track a product's condition and use shifts the focus to maximizing the product’s value to the customer over time. Customer relationships become continuous and open-ended, service becomes more efficient and proactive, and new business models are enabled. The rich data on location and environment that products provide take logistics to a whole new level. Smart, connected products also alter interactions between functions, in ways that hold major implications for organizational structure. Intense, ongoing coordination becomes necessary across multiple functions, including design, operations, sales, service, and IT. Functional roles overlap and blur. Entirely new functions - unified data organizations, dev-ops, and customer success management- begin to emerge. What is under way is the most substantial change in the manufacturing firm since the Second Industrial Revolution, and the effects are spreading to other industries, like services, as well.
Information technology is revolutionizing products. Once composed solely of mechanical and electrical parts, products have become complex systems that combine hardware, sensors, data storage, microprocessors, software, and connectivity in myriad ways. These smart, connected products - made possible by vast improvements in processing power and device miniaturization and by the network benefits of ubiquitous wireless connectivity - have unleashed a new era of competition. Smart, connected products offer exponentially expanding opportunities for new functionality, far greater reliability, much higher product utilization, and capabilities that cut across and transcend traditional product boundaries. The changing nature of products is also disrupting value chains, forcing companies to rethink and retool nearly everything they do internally. Smart, connected products raise a broad set of new strategic choices for companies about how value is created and captured, how to work with traditional partners and what new partnerships will be required, and how to secure competitive advantage as the new capabilities reshape industry boundaries. For many firms, smart, connected products will force the fundamental question: What business am I in? This article provides a framework for developing strategy and achieving competitive advantage in a smart, connected world.
Right Sourcing - Enabling Collaboration puts forward the proposal that the modern enterprise must fundamentally rethink its 'sourcing equation' to become or remain viable. By presenting perspectives on sourcing from 21 different contributors, the editors hope to enable and inspire readers to make better-informed decisions.
You walk into a Starbucks and see two deals for a cup of coffee. The first deal offers 33% extra coffee. The second takes 33% off the regular price. What's the better deal?
Andrew Pole had just started working as a statistician for Target in 2002, when two colleagues from the marketing department stopped by his desk to ask an odd question: If we wanted to figure out if a customer is pregnant, even if she didn't want us to know, can you do that?
Exploring the paradigm shift in business brought about by innovations in communication technology, this collaboration from three consultant-authors provides a succinct metaphor for the shift in the information economy-from "push" to "pull"-but little else. Though they provide an effective survey of the effect of more interactive, ubiquitous and on-demand communication, it already feels dated; the essential messages that Hagel, Brown, and Davison derive-networking is key, you should pursue your passions, many traditional ways of doing business are over-are old news in the business self-help section. The examples they provide focus primarily on individually-driven collaborative efforts (wikis, online gaming) and make poor analogies for someone looking to revitalize a corporation or present a compelling case for change to colleagues or an intransigent CEO. Professionals who already know that the Internet isn't just a phase will need more information than this book provides.
A wave of business innovation is driving the productivity resurgence in the U.S. economy. In Wired for Innovation, Erik Brynjolfsson and Adam Saunders describe how information technology directly or indirectly created this productivity explosion, reversing decades of slow growth. They argue that the companies with the highest level of returns to their technology investment are doing more than just buying technology; they are inventing new forms of organizational capital to become digital organizations. These innovations include a cluster of organizational and business-process changes, including broader sharing of information, decentralized decision-making, linking pay and promotions to performance, pruning of non-core products and processes, and greater investments in training and education. Brynjolfsson and Saunders go on to examine the real sources of value in the emerging information economy, including intangible inputs and outputs that have defied traditional metrics. For instance, intangible organizational capital is not directly observable on a balance sheet yet amounts to trillions of dollars of value. Similarly, such nonmarket transactions of information goods as Google searches or views of Wikipedia articles are an increasingly large share of the economy yet virtually invisible in the GDP statistics. Drawing on work done at the MIT Center for Digital Business and elsewhere, Brynjolfsson and Saunders explain how to better measure the value of technology in the economy. They treat technology as not just another type of ordinary capital investment by also focusing on complementary investments--including process redesign, training, and strategic changes--and ton he value of product quality, timeliness, variety, convenience, and new products. Innovation continues through booms and busts. This book provides an essential guide for policy makers and economists who need to understand how information technology is transforming the economy and how it will create value in the coming decade.
Innovation is an evergreen topic because it is such an essential ingredient for successful growth - and this book provides a new and fascinating perspective on how new innovations can best be found and developed. Managers from all kinds of companies will find this book of interest. This book is so well written and is filled with such engaging examples that we expect it to break out beyond a business audience to general readers. It is similar to The Tipping Point in terms of tone, readability, and rich, interesting stories, which show how innovative ideas were born in intersections that combined arenas as diverse as card games and sky rises, Palm Pilots and carrots, airplanes and cookies, ants and truck drivers. Offers practical strategies anyone can use to develop novel new ideas big and small, in all areas of life and work. The book's title refers to an explosion of creativity that occurred in Florence during the Renaissance, when the Medici banking family funded creators from many different disciplines to come together to debate, discuss, and discover new ideas. The book is about how any of us can create our own 'Medici effects' using the concept of 'the intersection'.
If you're like most business leaders, innovation now tops your corporate agenda. But despite all the talk and excitement about the importance of innovation, managers have so far found scant help for innovating in a systematic way that fuels consistent growth and sustained success. In Innovation to the Core, Strategos CEO Peter Skarzynski and business strategist Rowan Gibson change all that. They share the accumulated wisdom from Strategos--the consulting firm Skarzynski co-founded with Gary Hamel that helps clients instill innovation into their very core. Drawing on a wealth of stories and examples, the book shows how companies of every stripe have overcome the barriers to successful, profitable innovation. You'll find parts devoted to crucial topics--such as how to organize the discovery process, generate strategic insights, enlarge your innovation pipeline, and maximize your return on innovation. Frequent hands-on tools--frameworks, checklists, probing questions--help you put the book's ideas into action. Crafted in close coordination with Gary Hamel--the man who Fortune magazine has called "the world's leading expert on business strategy"--Innovation to the Core is the definitive fieldbook for making innovation a core competence in your organization.
Mark Twain once observed, â€œA lie can get halfway around the world before the truth can even get its boots on.â€ His observation rings true: Urban legends, conspiracy theories, and bogus public-health scares circulate effortlessly. Meanwhile, people with important ideasâ€“business people, teachers, politicians, journalists, and othersâ€“struggle to make their ideas â€œstick.â€ Why do some ideas thrive while others die? And how do we improve the chances of worthy ideas? In Made to Stick, accomplished educators and idea collectors Chip and Dan Heath tackle head-on these vexing questions. Inside, the brothers Heath reveal the anatomy of ideas that stick and explain ways to make ideas stickier, such as applying the â€œhuman scale principle,â€ using the â€œVelcro Theory of Memory,â€ and creating â€œcuriosity gaps.â€ In this indispensable guide, we discover that sticky messages of all kindsâ€“from the infamous â€œkidney theft ringâ€ hoax to a coachâ€™s lessons on sportsmanship to a vision for a new product at Sonyâ€“draw their power from the same six traits. Made to Stick is a book that will transform the way you communicate ideas. Itâ€™s a fast-paced tour of success stories (and failures)â€“the Nobel Prize-winning scientist who drank a glass of bacteria to prove a point about stomach ulcers; the charities who make use of â€œthe Mother Teresa Effectâ€; the elementary-school teacher whose simulation actually prevented racial prejudice. Provocative, eye-opening, and often surprisingly funny, Made to Stick shows us the vital principles of winning ideasâ€“and tells us how we can apply these rules to making our own messages stick.
C.K. Prahalad, the world's premier business thinker, and IT scholar M.S. Krishnan unveil the critical missing link in connecting strategy to execution--building organizational capabilities that allow companies to achieve and sustain continuous change and innovation. The New Age of Innovation reveals that the key to creating value and the future growth of every business depends on accessing a global network of resources to co-create unique experiences with customers, one at a time. To achieve this, CEOs, executives, and managers at every level must transform their business processes, technical systems, and supply chain management, implementing key social and technological infrastructure requirements to create an ongoing innovation advantage. In this landmark work, Prahalad and Krishnan explain how to accomplish this shift--one where IT and the management architecture form the corporation's fundamental foundation. This book provides strategies for: Redesigning systems to co-create value with customers and connect all parts of a firm to this process; Measuring individual behavior through smart analytics; Ceaselessly improving the flexibility and efficiency in all customer-facing and back-end processes; Treating all involved individuals--customers, employees, investors, suppliers--as unique; Working across cultures and time-zones in a seamless global network; Building teams that are capable of providing high-quality, low-cost solutions rapidly. The fomula is N=1 and R=G.
Raf Cammarano comments on the Blue Ocean Strategy book by W. Chan Kim and RenÃ©e Mauborgne.
Guy Kawasaki, former chief evangelist at Apple Computer and an iconoclastic corporate tactician who now works with high-tech startups in Silicon Valley, is back in print with his seventh book: Rules for Revolutionaries: The Capitalist Manifesto for Creating and Marketing New Products and Services. Entertainingly written in collaboration with previous co-author Michele Moreno, it lays out Kawasaki's decidedly audacious (but personally experienced) strategies for beating the competition and triumphing in today's hyper-charged business environment. The book is divided into three sections, whose titles alone epitomise its thrust and tone. The first, Create Like a God, discusses the way that radical new products and services must really be developed. The second, Command Like a King, explains why take- charge leaders are truly necessary in order for such developments to succeed. And the third, "Work Like a Slave," focuses on the commitment that is actually required to beat the odds and change the world. A concluding section is filled with entertaining and inspirational quotes on topics like technology, transportation, politics, entertainment, and medicine that show how even some of our era's most successful ideas and people--the telephone, Louis Pasteur, and Yahoo! among them--have prevailed despite the scoffing of naysayers. --Howard Rothman, Amazon.com
Geoffrey Moore is one of the most respected and bestselling names in business books. In his widely quoted Crossing the Chasm, he identified and addressed the greatest challenge facing new ventures. Now he's back with a book for established businesses that need to learn how to adapt - or suffer the slow declines into marginalized performance that have characterized so many Fortune 500 icons in recent years. Deregulation, globalization, and e-commerce are exerting unprecedented pressures on company profits. In this new economic ecosystem, companies must dramatically differentiate from their direct competitors - or risk declining performance and eventual extinction. But how do companies choose the right innovation strategy? Or overcome internal inertia that resists the kind of radical commitments needed to truly set the company's offers apart? Illustrating his arguments with more than one hundred examples and a full-length case study based on his unprecedented access to Cisco Systems, Moore shows businesses how to meet today's Darwinian challenges, whether they're producing commodity products or customized services. For companies whose competitive differentiation to the marketplace is still effective, he demonstrates how innovations in execution can help boost productivity, whether a company is competing in a growth market, a mature market, or even a declining market. For companies in danger of succumbing to competitive pressures, he shows how to overcome inertia by engaging the entire corporate community in an unceasing commitment to innovate and evolve. For any business competing in today's eat-or-be-eaten economic jungle, this groundbreaking guide shows not only how to survive, but also thrive.
Winning by not competing: a fresh approach to strategy Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet these hallmarks of competitive strategy are not the way to create profitable growth in the future. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and RenÃ©e Mauborgne argue that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, the authors argue that lasting success comes not from battling competitors, but from creating â€œblue oceansâ€: untapped new market spaces ripe for growth. Such strategic movesâ€”which the authors call â€œvalue innovationâ€â€”create powerful leaps in value that often render rivals obsolete for more than a decade. Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.
Human beings are information omnivores: we are constantly collecting, labeling, and organizing data. But today, the shift from the physical to the digital is mixing, burning, and ripping our lives apart. In the past, everything had its one place--the physical world demanded it--but now everything has its places: multiple categories, multiple shelves. Simply put, everything is suddenly miscellaneous. In Everything Is Miscellaneous, David Weinberger charts the new principles of digital order that are remaking business, education, politics, science, and culture. In his rollicking tour of the rise of the miscellaneous, he examines why the Dewey decimal system is stretched to the breaking point, how Rand McNally decides what information not to include in a physical map (and why Google Earth is winning that battle), how Staples stores emulate online shopping to increase sales, why your children's teachers will stop having them memorize facts, and how the shift to digital music stands as the model for the future in virtually every industry. Finally, he shows how by "going miscellaneous," anyone can reap rewards from the deluge of information in modern work and life. From A to Z, Everything Is Miscellaneous will completely reshape the way you think--and what you know--about the world.
When a disruptive innovation is launched, it changes the entire industry and every firm operating within in This book argues that it is possible to predict which companies will win and which will lose in a specific situationâ€”and provides a practical framework for doing so. Most books on innovationâ€”including Christensenâ€™s previous two booksâ€”approached innovation from the inside-out, showing firms how they can create innovations inside their own companies. This book is written from an â€œoutside-inâ€ perspective, showing how executives, investors, and analysts can assess the impact of a new innovation on the firms they have a vested interest in.
With the radical changes in information production that the Internet has introduced, we stand at an important moment of transition, says Yochai Benkler in this thought-provoking book. The phenomenon he describes as social production is reshaping markets, while at the same time offering new opportunities to enhance individual freedom, cultural diversity, political discourse, and justice. But these results are by no means inevitable: a systematic campaign to protect the entrenched industrial information economy of the last century threatens the promise of todayâ€™s emerging networked information environment. In this comprehensive social theory of the Internet and the networked information economy, Benkler describes how patterns of information, knowledge, and cultural production are changingâ€”and shows that the way information and knowledge are made available can either limit or enlarge the ways people can create and express themselves. He describes the range of legal and policy choices that confront us and maintains that there is much to be gainedâ€”or lostâ€”by the decisions we make today.
Wikinomics and The Wisdom of Crowds identified the phenomena of emerging social networks, but they do not confront how businesses can profit from the wisdom of crowds. WE ARE SMARTER THAN ME by Barry Libert and Jon Spector, Foreword by Wikinomics author Don Tapscott, is the first book to show anyone in business how to profit from the wisdom of crowds. Drawing on their own research and the insights from an enormous community of more than 4,000 people, Barry Libert and Jon Spector have written a book that reveals what works, and what doesn't, when you are building community into your decision making and business processes. In We Are Smarter Than Me, you will discover exactly how to use social networking and community in your business, driving better decision-making and greater profitability. The book shares powerful insights and new case studies from product development, manufacturing, marketing, customer service, finance, management, and beyond. You'll learn which business functions can best be accomplished or supported by communities; how to provide effective moderation, balance structure with independence, manage risk, define success, implement effective metrics, and much more. From tools and processes to culture and leadership, We Are Smarter than Me will help you transform the promise of social networking into a profitable reality.
"The Long Tail" is a powerful new force in our economy: the rise of the niche. As the cost of reaching consumers drops dramatically, our markets are shifting from a one-size-fits-all model of mass appeal to one of unlimited variety for unique tastes. From supermarket shelves to advertising agencies, the ability to offer vast choice is changing everything, and causing us to rethink where our markets lie and how to get to them. Unlimited selection is revealing truths about what consumers want and how they want to get it, from DVDs at Netflix to songs on iTunes to advertising on Google. However, this is not just a virtue of online marketplaces; it is an example of an entirely new economic model for business, one that is just beginning to show its power. After a century of obsessing over the few products at the head of the demand curve, the new economics of distribution allow us to turn our focus to the many more products in the tail, which collectively can create a new market as big as the one we already know. The Long Tail is really about the economics of abundance. New efficiencies in distribution, manufacturing, and marketing are essentially resetting the definition of whats commercially viable across the board. If the 20th century was about hits, the 21st will be equally about niches.
Thomas H. Davenport and Jeanne G. Harris explain how many successful organizations are using data creatively to beat the competition. High-performance businesses are now building their competitive strategies around data-driven insights that are, in turn, generating impressive business results. Their secret weapon? Analytics: sophisticated quantitative and statistical analysis and predictive modeling supported by powerful information technology and data-savvy senior leaders. Exemplars of analytics are using new tools to identify their most profitable customers and offer them the right price, to accelerate product innovation, to optimize supply chains, and to identify the true drivers of financial performance. A wealth of examplesâ€”from organizations as diverse as Amazon, Barclay's, Capital One, Harrah's, Procter & Gamble, Wachovia and the Boston Red Soxâ€”illuminate how to leverage the power of analytics.
"The best way to understand the dramatic transformation of unknown books into bestsellers, or the rise of teenage smoking, or the phenomena of word of mouth or any number of the other mysterious changes that mark everyday life," writes Malcolm Gladwell, "is to think of them as epidemics. Ideas and products and messages and behaviors spread just like viruses do." Although anyone familiar with the theory of memetics will recognize this concept, Gladwell's The Tipping Point has quite a few interesting twists on the subject. For example, Paul Revere was able to galvanize the forces of resistance so effectively in part because he was what Gladwell calls a "Connector": he knew just about everybody, particularly the revolutionary leaders in each of the towns that he rode through. But Revere "wasn't just the man with the biggest Rolodex in colonial Boston," he was also a "Maven" who gathered extensive information about the British. He knew what was going on and he knew exactly whom to tell. The phenomenon continues to this day--think of how often you've received information in an e-mail message that had been forwarded at least half a dozen times before reaching you. Gladwell develops these and other concepts (such as the "stickiness" of ideas or the effect of population size on information dispersal) through simple, clear explanations and entertainingly illustrative anecdotes, such as comparing the pedagogical methods of Sesame Street and Blue's Clues, or explaining why it would be even easier to play Six Degrees of Kevin Bacon with the actor Rod Steiger. Although some readers may find the transitional passages between chapters hold their hands a little too tightly, and Gladwell's closing invocation of the possibilities of social engineering sketchy, even chilling, The Tipping Point is one of the most effective books on science for a general audience in ages. It seems inevitable that "tipping point," like "future shock" or "chaos theory," will soon become one of those ideas that everybody knows--or at least knows by name. --Ron Hogan Book Description: This celebrated New York Times bestsellernow poised to reach an even wider audience in paperbackis a book that is changing the way North Americans think about selling products and disseminating ideas. Gladwells new afterword to this edition describes how readers can constructively apply the tipping point principle in their own lives and work. Widely hailed as an important work that offers not only a road map to business success but also a profoundly encouraging approach to solving social problems.
Geoffrey Moore follows up a request from the World Economic Forum for thoughts about the Digital Ecosystem, in preparation for framing the 2007 agenda at Davos.
MIT-review of Crossing the Chasm by Geoffrey A. Moore