Download Blown to Bits: how the new economics of information by Philip & Thomas S. Wurster Evans PDF

By Philip & Thomas S. Wurster Evans

Richness or achieve? The trade-off was once easy yet absolute: your small business process both may possibly specialise in 'rich' details - custom-made services and products adapted to a distinct segment viewers - or may perhaps achieve out to a bigger marketplace, yet with watered-down details that sacrificed richness in desire of a huge, normal charm. a lot of industrial procedure as we all know it this day rests in this basic trade-off. Now, say Evans and Wurster, the hot economics of data is removing the trade-off among richness and achieve, blowing aside the rules of conventional company procedure. "Blown to Bits" finds how the unfold of connectivity and customary criteria is redefining the data channels that hyperlink companies with their clients, providers, and staff. more and more, your consumers could have wealthy entry to a universe of choices, your providers will take advantage of direct entry in your shoppers, and your rivals will choose off the main ecocnomic elements of your price chain. Your aggressive virtue is up for grabs. to organize company executives and marketers alike for a primary switch in company pageant, Evans and Wurster extend and light up groundbreaking thoughts first explored within the award-winning "Harvard enterprise evaluation" article "Strategy and the recent Economics of Information", and current a realistic advisor for using them. Examples span the spectrum of industries - from monetary providers to wellbeing and fitness care, from patron to commercial items, and from media to retailing. "Blown to Bits" exhibits the best way to construct new thoughts that replicate an international during which richness and achieve move hand in hand and the way to utilize the recent forces shaping aggressive virtue.

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2 Information dominates processes as well as products. It is hard to imagine how even low-tech manufacturers could compete without such information-intensive functions as market research, logistics, and advertising. Inventory and work-in-process are purely physical things, but if information were Page 10 accurate and timely, factories could operate with a fraction of their current inventory. Inventory is merely the physical correlate of deficient information. More fundamentally, information and the mechanisms for delivering it are the glue that holds together the structure of businesses.

Anyone who wanted to buy the CD-ROM alone would have to pay $1,000. This decision appeased the sales force briefly, but did nothing to stem the continuing collapse of sales. Losses mounted. There was no apparent strategy. In May of 1995, the Benton Foundation finally put the company up for sale. 3 Page 4 For nearly eighteen months, investment bankers tried to find a buyer. Microsoft said no. Technology, media, and information companies all declined. Finally, in 1996, financier Jacob Safra agreed to buy the company, paying less than half of book value.

It is a debt associated with teaching us a certain way of thinking. Bruce Henderson, the founder of BCG, was fond of quoting the remark by Archimedes that given a fulcrum and a lever sufficiently long, he could move the world. Bruce believed passionately in the possibility that strategic thinking could move the world. And he was one of the few strategic thinkers who actually did so. We would not presume to any such claim. But Bruce, and the extraordinary professional community he built, did teach us to aspire.

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