Free PDF Blown to bits: how the new economics of information transforms strategy, by Philip & Thomas S. Wurster Evans
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Blown to bits: how the new economics of information transforms strategy, by Philip & Thomas S. Wurster Evans
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Richness or reach? The trade-off used to be simple but absolute: your business strategy either could focus on 'rich' information - customized products and services tailored to a niche audience - or could reach out to a larger market, but with watered-down information that sacrificed richness in favor of a broad, general appeal. Much of business strategy as we know it today rests on this fundamental trade-off. Now, say Evans and Wurster, the new economics of information is eliminating the trade-off between richness and reach, blowing apart the foundations of traditional business strategy. "Blown to Bits" reveals how the spread of connectivity and common standards is redefining the information channels that link businesses with their customers, suppliers, and employees. Increasingly, your customers will have rich access to a universe of alternatives, your suppliers will exploit direct access to your customers, and your competitors will pick off the most profitable parts of your value chain. Your competitive advantage is up for grabs. To prepare corporate executives and entrepreneurs alike for a fundamental change in business competition, Evans and Wurster expand and illuminate groundbreaking concepts first explored in the award-winning "Harvard Business Review" article "Strategy and the New Economics of Information", and present a practical guide for applying them. Examples span the spectrum of industries - from financial services to health care, from consumer to industrial goods, and from media to retailing. "Blown to Bits" shows how to build new strategies that reflect a world in which richness and reach go hand in hand and how to make the most of the new forces shaping competitive advantage.
- Sales Rank: #3745928 in Books
- Published on: 2000
- Number of items: 1
- Binding: Hardcover
- 261 pages
Most helpful customer reviews
12 of 15 people found the following review helpful.
Great book for executives to read and take to heart!
By A Customer
As an industry analyst for financial services, I must admit I was delighted by this book and appalled by the reviews it seems to have generated on Amazon! Perhaps the wrong people are reading this book--people already comfortable with the dynamics of the new economy and with technology will not find a "how to" manual to success on the Internet in this book.
Although some new economy professionals might find this interesting as a way to conceptualize competitive dynamics, the book will have a great deal more immediacy for those whose business is already threatened with extinction .
For managers and executives (and of course, students and analysts) of old economy-type companies who need to understand in which ways old business models have been made irrelevant by the "new economics of information", or who need to understand which competitive "laws" remain constant and relevant, this book is an absolute MUST.
In an industry like financial services, this text is both helpful and instructive for survival. It provides a clear and well explained structure for understanding the ways in which an industry loses competitive advantage and becomes impaired. This occurs when progress in information and technology melts the "glue" holding the value chain together in an "integrated" fashion and individual components of that chain become able to function independently as competitors, or when entire components are forced to disappear.
As a guide to strategy, this analysis will assist managers to develop realistic expectations as well as to better foresee potential threats to success. For those comfortable at an abstract level rather than needing a cook book, the text will be invaluable.
Managers willing to spend the time applying these concepts to a competitive analysis of their own businesses should find this a useful starting place for rethink the economics of their businesses, and for staying ahead of the curve. For securities analysts, this book will help distinguish between those competitive dynamics which have not changed as well as those which have.
MOST OF ALL, THE ANALYSIS WILL provide invaluable context for the difficult decisions lying ahead of many old line companies for whom the handwriting on the wall is starting to flash in Neon.
For those familiar with the work of Michael Porter, the study provides a conceptual basis for where his work on competitive advantage and strategy have not accounted for the impact of the Internet and globalization of competition--ie, when barriers to entry are eroding at an increasingly rapid rate and businesses are rapidly commoditized yet demand significant investment in technology and systems to compete--leaving competitors unable to earn even their cost of capital (...as in, don't do it, it's time to move on).
So, my advice to business people who get this far in the list of stupid and irrelevant reviews, is to ignore the negative comments of those who get lost in academic mumbo jumbo to trash this book and make themselves sound interesting, and spend a very enjoyable evening understanding the ways in which the availability of "rich" information to a broader and broader base of global customers and competitors has transformed and will continue to transform the structure of business and commerce as we know it.
0 of 0 people found the following review helpful.
Technology Changes the Landscape
By J. J. Kwashnak
Many times we hear the axiom "Adapt or Die" thrown around in business books. But Evans and Wurster show that this has never been more true than now under the Internet Economy. Some of their observations are called into contemplation with the contration of the economy, but the heart is still applicable today. The authors show how the changes of the "new economy" affect all levels of the supply chain and the decisions that businesses must make to keep profitable. They give a graph and a concept to the tradeoff of reach vs richness that we may understand but not always see in our business.
A must read for anyone who is running a business today, and wants to expand or at least keep their profitablity.
9 of 11 people found the following review helpful.
Needs more of a direction
By A Customer
This is a very good book, but can be frustrating to read because the authors meticulously keep from being decisive about possible outcomes at points. Even if wrong, it is often useful to take a stance and then matters clarify. Smart people who have a great grasp of these issues, but stopped short.
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