New PDF release: Blown to Bits: how the new economics of information

By Philip & Thomas S. Wurster Evans

Richness or succeed in? The trade-off was once uncomplicated yet absolute: what you are promoting technique both may possibly concentrate on 'rich' info - custom-made services and products adapted to a distinct segment viewers - or may perhaps succeed in out to a bigger industry, yet with watered-down info that sacrificed richness in prefer of a huge, basic attraction. a lot of commercial technique as we all know it this present day rests in this primary trade-off. Now, say Evans and Wurster, the recent economics of knowledge is casting off the trade-off among richness and succeed in, blowing aside the principles of conventional company approach. "Blown to Bits" unearths how the unfold of connectivity and customary criteria is redefining the data channels that hyperlink companies with their shoppers, providers, and staff. more and more, your clients could have wealthy entry to a universe of choices, your providers will make the most direct entry for your consumers, and your rivals will decide off the main ecocnomic components of your worth chain. Your aggressive virtue is up for grabs. to organize company executives and marketers alike for a primary swap in company festival, Evans and Wurster extend and remove darkness from groundbreaking innovations first explored within the award-winning "Harvard enterprise assessment" article "Strategy and the hot Economics of Information", and current a realistic consultant for utilizing them. Examples span the spectrum of industries - from monetary providers to overall healthiness care, from buyer to business items, and from media to retailing. "Blown to Bits" exhibits how one can construct new suggestions that mirror an international within which richness and succeed in pass hand in hand and the way to utilize the recent forces shaping aggressive virtue.

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Additional info for Blown to Bits: how the new economics of information transforms strategy

Sample text

Readers familiar with the extensive literature on the information revolution may find the explanation of Moore's Law redundant and even a bit irritating (though we did keep it to two paragraphs). These same readers will find some of our examples familiar. This is deliberate: we believe that the logic we propose penetrates deep into the interplay of competitive forces and that familiar examples are the most effective way to demonstrate this. ) Readers looking for Ten Rules for Succeeding in the Information Economy will be disappointed: we believe with some passion that the task of rethinking strategy is specific to each business and cannot be short-circuited by simplistic formulas.

In the 1880s, the railway companies adopted a standard gauge nationwide and in so doing blew up the previous limitations of reach. 5 The standard allowed goods to be shipped nonstop across the country. The emergence of dial tone and other common policies, procedures, and standards had a similar impact in allowing long-distance telephony. And the adoption of AC power and the standard electric power plug was vital to the growth of the consumer appliance industry. If universal and open standards today were created only for transporting data, this would be dramatic enough, comparable to rail widths and dial tone.

Beginning only recently, communications capacity is exploding at a rate that dwarfs even Moore's Law. Improvements in data compression, amplification, and multiplexing now permit a single fiber-optic strand to carry twenty-five terabits of information per second: twenty-five times more information than the average traffic load of all the world's communications networks put together. In the United States, communications companies are now laying optical fiber networks at the rate of 4,000 strand miles per day.

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