Book Description

A Bold Manifesto on the Future of Information Technology

Over the last decade, and even since the bursting of the technology bubble, pundits, consultants, and thought leaders have argued that information technology provides the edge necessary for business success.

IT expert Nicholas G. Carr offers a radically different view in this eloquent and explosive book. As IT's power and presence have grown, he argues, its strategic relevance has actually decreased. IT has been transformed from a source of advantage into a commoditized "cost of doing business"-with huge implications for business management.

Expanding on Carr's seminal Harvard Business Review article that generated a storm of controversy, Does IT Matter? provides a truly compelling-and unsettling-account of IT's changing business role and its leveling influence on competition.

Through astute analysis of historical and contemporary examples, Carr shows that the evolution of IT closely parallels that of earlier technologies such as railroads and electric power. He goes on to lay out a new agenda for IT management, stressing cost control and risk management over innovation and investment. And he examines the broader implications for business strategy and organization as well as for the technology industry.

A frame-changing statement on one of the most important business phenomena of our time, Does IT Matter? marks a crucial milepost in the debate about IT's future.

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Reviews (21)

Where is IT going?
Full Title: Does IT Matter? Information Technology and the Corrosion of Competitive Advantage -- With $2 trillion being spent on computers and communications each year there is an underlying assumption that IT is critical to increasing the competitive advantage and strategic success of a business.

But with the ready availability of computers, storage, software and people, has the IT function perhaps become one of the foundation building blocks of a corporation, just like sales, engineering or manufacturing?

Similar to other books that are appearing, the author argues that it is time to look at IT with a managerial view. What are you getting for the investment? Is IT simply another cost center or a strategic benefit to the company? How do you control costs and yet get the information you need in a timely manner? The book provides an interesting and timely view of such points.

A different view of the computer revolution
There has seemed to be a neverending flood of hype about computers for at least the last 20 years. Information technology (IT) is going to change everything, we've been told - from the way businesses operate to the way people live. Well, the flood ends here. Meticulously argued, well researched, and surprisingly lively, this short book dissects one computer myth after another. Most of it focuses on the business world, showing how IT is turning into another commonplace technology like electricity. There's an engaging historical review of how big technologies create big business changes early in their development, but then quickly turn into routine costs. It also provides practical advice for companies on how they should manage IT. It ends, though, with a broader examination of how we tend to get carried away with our dreams of big technological revolutions. It shows that in comparison with earlier technologies computers have had a fairly modest impact on society and commerce - and that some of the consequences have been less than positive. This book is a breath of fresh air.

Excellent questions with inferior answers
'Does IT Matter' is a difficult book to rate. As to the questions it raises, it deserves 5 stars. But its answers, are two-star, at best.

By way of analogy, most bomb threats are bogus, but each one must be treated as if it were genuine. With that, in his new book Does IT Matter?, Nicholas Carr throws a bomb, and it turns out to be a dud.

Carr's book is an outgrowth of his article "IT Doesn't Matter," which appeared in the May 2003 issue of the Harvard Business Review. His hypothesis is that the strategic importance of IT has diminished. Carr views IT as a commodity, akin to electricity.

He also compares IT to the railroad infrastructure. In the early days, railroads that had their own tracks had a huge advantage, but once the rails become ubiquitous and open, that advantage went away.

Carr feels that since all companies can purchase the same hardware and software, any strategic advantage is obviated. It's true that the core functions of IT (processing, network transport, storage, etc.) are affordable and available to all, but there's still huge strategic advantage to be gained in how they're implemented.

It's much like two airlines that purchase the same model of airplane. If one airline streamlines and optimizes operations, trains its staff and follows standard operating procedures, it can expect to make a profit. If the other has operational inefficiencies, labor problems and other setbacks, it could lose money. The airplane is identical, but the outcome is not.

Carr is correct in that there have been some huge IT outlays of dubious value. But to say that IT is simply the procurement of hardware and software is to be blind to the fact that hardware and software are but two of the myriad components of IT.

To use the railroad metaphor, hardware and off-the-shelf software are the rails of IT; how they are designed and implemented is what provides their strategic value. Carr views IT as completely evolved. But the reality is that although IT has matured, it still is in a growth mode. The IT of today is vastly different from the IT of both 1999 and 2009.

Carr's view that most innovations within IT will tend to enhance the reliability and efficiency of IT rather than provide a competitive advantage is in direct opposition to what is said by every CIO I have met.

Does Enterprise Architecture Matter?
Readers of this book should also read books on Enterprise Architecture as a solution to the concerns raised by the author.

Provocative title, narrow claim, strong argument
You may recall the uproar in 2003 around a short Harvard Business Review article entitled "IT Doesn't Matter". Various IT company leaders spoke out against the article, with Carly Fiorina calling it "dead wrong" and Steve Ballmer calling it "hogwash". There were also many lengthy rebuttals. Nicholas Carr, the author of the original 8 page article, expanded the argument into a well-written book, explaining his claim more thoroughly and responding to his critics.

The book (like the article) has a provocative title, but in fact Carr's claim is much narrower than the title suggests. Carr is only focused on *corporate IT*, the systems that companies build and deploy for their own use and the use of their customers and suppliers. He is not looking at consumer IT --- the digital wonders that are showing up in our living rooms, cars, and in our pockets. And he is not looking at governmental IT --- the systems that are used to find terrorists, wage combat, or evaluate welfare eligibility.

More significantly, Carr is also focused on one corporate use of IT, to attain a *competitive advantage*. Can Coke achieve some competitive advantage over Pepsi by implementing a new application? Carr is not asking whether IT can add value to a company --- clearly there are thousands of examples of IT saving money, providing value to customers, to suppliers, and adding value in other ways. Instead, Carr asks whether we can expect IT to add this value in a way that competitors cannot quickly realize the same added value. Can Coke do something significant with IT that will not be quickly replicated by Pepsi?

Finally, Carr agrees that in the past IT has been used to gain competitive advantages. By automating reservations, pricing, and seat assignments in the 1960s, American Airlines really did achieve a lasting advantage over its rivals. By creating logistics applications in the 1980s, Walmart really did achieve a lasting advantage over Sears and Kmart. Carr's claim is that *those days are gone*, that the days of using IT for competitive advantage are over.

His claim rests on three broad trends, each of which undercuts the opportunities for competitive advantage. First, the time needed to replicate a particular IT application---the "technology replication cycle" in his words---has shortened considerably over the last few decades. Hardware, tools and platform technologies have made it increasingly easier, faster, and cheaper to replicate a successful application built elsewhere. This declining technology cycle is likely to continue, and make any advantage in the ownership of a particular application to be short-lived.

Another reinforcing trend is the push toward standardization. 40 years ago every company built their own applications. Since then software products have emerged. These products can always be customized to particular situations, but they often are not. It is often cheaper and easier to adapt the business to the best practices in SAP, rather than to customize SAP to the specifics of the business. The economics of standardization --- the cost advantages for companies to be like their competitors --- trump the advantages of maintaining differences. BPOs further this push to standardization, and away from competitive advantage via IT.

A third trend is the spread of IT business insight. It is much better understood today how to achieve value with IT. The secrets of how to do this spreads with individual experience, with analysts, with books and trade rags, and with consultants. If a company has success with a particular technology, everyone in their industry knows about it quickly.

These three trends (Carr claims) are reducing IT to a role much like electricity. Electricity is critical to all businesses today, but (aside from mishaps like the recent problems in California) no one would expect to find a competitive advantage in superior use of electricity.

Does Carr make his case? I think he does, although there are some big exceptions to his argument. ... Read more

Book Description

An Actionable Framework for Elevating the CIO's Strategic Role

Two converging factors-the ubiquitous presence of technology in organizations and the recent technology downturn-have brought Chief Information Officers (CIOs) to a critical breaking point. They can seize the moment to leverage their expertise into a larger and more strategic role than ever before, or they can allow themselves to be relegated to the sideline function of "chief technology mechanic."

Drawing from exclusive research conducted by Gartner, Inc., with thousands of companies and CIOs, Marianne Broadbent and Ellen Kitzis reveal exactly what CIOs must do now to solidify their credibility with the executive team and bridge the chasm that currently separates business and IT strategy. The New CIO Leader outlines the agenda CIOs need to integrate business and IT assets in a way that moves corporate strategy forward- whether a firm is floundering, successfully competing, or leading its industry.

Mandatory reading for CIOs in every firm, The New CIO Leader spells out how information systems can deliver results that matter-and how CIOs can become the enterprise leaders they should be. ... Read more

Book Description

Firms with superior IT governance have more than 25% higher profits than firms with poor governance given the same strategic objectives. These top performers have custom-designed IT governance for their strategies. Just as corporate governance aims to ensure quality decisions about all corporate assets, IT governance links IT decisions with company objectives and monitors performance and accountability.

Based on a study of 250 enterprises worldwide, IT Governance shows how to design and implement a system of decision rights that will transform IT from an expense to a profitable investment.

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Reviews (1)

Fills in blanks left by CObIT
This book is not consistently aligned to CObIT (Control Objectives for IT), which is an IT governance standard set forth by the IT Governance Institute (paste the ASIN, B0001F8V14, into the search all products box on this page). However, it does provide a realistic approach to governance that reflects successful practices developed and employed by 250 companies surveyed by the authors. The key differences between CObIT and the approach in this book is the stakeholder model presented versus the control model CObIT incorporates. More importantly, the authors approach more effectively aligns IT to business goals and objectives, with IT in a supporting role more than as the primary decision maker.

Among the points the authors make is that IT is a strategic asset, and effective governance links IT to strategy and performance. I fully agree with this approach, and especially like the recommendations the authors make for implementing and managing IT governance, as well as the resources in the appendix which show which companies were surveyed.

If you are following CObIT you may have issues with this book; however, if you read through it with an objective mind you will find that the approach will work effectively, and does come closer to IT-business alignment than the CObIT approach. ... Read more

Amazon.com

Chapter 1 of Information Rules begins with a description of the change brought on by technology at the close of the century--but the century described is not this one, it's the late 1800s. One hundred years ago, it was an emerging telephone and electrical network that was transforming business. Today it's the Internet. The point? While the circumstances of a particular era may be unique, the underlying principles that describe the exchange of goods in a free-market economy are the same. And the authors, Carl Shapiro and Hal Varian, should know. Shapiro is Professor of Business Strategy at the Haas School of Business at UC Berkeley and has also served as chief economist at the Antitrust Division of the Justice Department. Varian is the Dean of the School of Information Management and Systems at UC Berkeley. Together they offer a deep knowledge of how economic systems work coupled with first-hand experience of today's network economy. They write:

Sure, today's business world is different in a myriad of ways from that of a century ago. But many of today's managers are so focused on the trees of technological change that they fail to see the forest: the underlying economic forces that determine success and failure.

Reviews (62)

Monarch of the Early-21st Century
Those in need of a strategic guide to the network economy will find a wealth of valuable material in Information Rules, co-authored by Carl Shapiro and Hal R. Varian and published by Harvard Business School Press. The titles of its ten chapters suggest the nature and extent of subjects covered: The Information Economy, Pricing Information, Versioning Information, Rights Management, Recognizing Lock-In, Managing Lock-In, Networks and Positive Feedback, Cooperation and Compatibility, Waging a Standards War, and Information Policy. In effect, Information Rules combines all of the benefits of an operations manual with the counsel of two renowned experts who accompany the reader, step by step, through the manual.

According to the authors, the thesis of their book is that "durable economic principles can guide you through today's frenetic business environment. Technology changes. Economic laws do not. If you are struggling to comprehend what the Internet means for you and your business, you can learn a great deal from the advent of the telephone system a hundred years ago." That's true. The interdependence of information (software) and infrastructure (hardware) will always be important, indeed imperative. Therefore, interconnection battles are won only if, for example, local telephone companies in 1900 were interconnected with Bell to provide long-distance service and, 100 years later, browsers are interconnected with operating systems.

The authors "use the term information very broadly. Essentially, anything that can be digitized -- encoded as a stream of bits -- is information." However, Information Rules focuses on models, not trends; concepts, not vocabulary; and analysis, not analogies. Recall the previous reference to "durable economic principles." Trends come and go, as do vocabularies; therefore, today's brilliant analogies may well make no sense tomorrow, or even later today. Hence the necessity of durable principles, principles which continue to guide efforts to anticipate and then manage what Peter Drucker has called "the consequences of what has yet to occur."

The Chinese character for "crisis" has two different meanings: peril and opportunity. The title of Information Rules can also be interpreted in two different ways: rules of principle and rules of dominance. In a Darwinian sense, those who dominate the Information Age will be those who apply the right principles. What do Shapiro and Varian suggest?

With regard to the pricing of information, the subject of Chapter 2, they suggest two strategies: don't be greedy and play tough. The "lessons" to be learned are to personalize your product and personalize your service, "know thy customer", differentiate your prices when possible, and use promotions to measure demand. Indeed, at the end of each chapter, they summarize "lessons" to be learned after having suggested specific strategies to apply them. In the "Further Reading" "Bibliography" sections which conclude Information Rules, Shapiro and Varian direct the reader to various sources to which they referred previously.

Who will gain the greatest value from this book? Owners/CEOs of small-to-midsize companies which are struggling to decide what to do...and what not to do...with opportunities created by the Internet and, more specifically, the WWW. Also, senior-level executives of much larger organizations (both for-profit and not-for-profit) who must formulate long-term strategies to achieve sustainable prudent growth. For thousands of years, there has never been a shortage of available information but until the printing press, access to it was severely limited. Since then, a variety of media have broadened and deepened that access and, indeed, the volume of available information has increased exponentially.

According to Shapiro and Varian, the challenge today is not one of access; rather, the challenge is to follow certain "certain durable principles" on which effective strategies are based. No one knows precisely how and to what extent the network economy will change in years to come. Principles which endure are those which accommodate change, whenever it occurs, whatever it proves to be. Shapiro and Varian suggest what those principles should be.

Information Rules is a stunning achievement.

Prescient rules for winning in the Internet economy
Information Rules: A Strategic Guide to the Network Economy by Carl Shapiro and Hal Varian takes a look at the emerging Internet economy, and argues compellingly that traditional economics still apply in evaluating the Yahoos of our generation. In fact, history provides a pretty good guide for evaluating network-centric businesses. One only has to look at the evolution of the railroad, telephone and television networks. The book reaches some interesting conclusions, summarized here:

1.Information is costly to produce but inexpensive to reproduce (i.e., has a high fixed cost but a low marginal cost). This translates to a lot of latitude, challenges and opportunities in coming up with pricing models and corresponding versions of a product to create both the maximum revenue opportunities and establish the largest number of members of the product's network of users. Also, given the low cost of reproduction, it stands to reason that protecting intellectual property is a key determinant of information good's economic success. 2.Information is an "Experience Good," which is to say that customers must use and experience the product to put value on it. One only has to think about Netscape's initial success giving away the browser to see the value of leveraging the "experience" factor. 3.Products that can achieve "lock-in" will benefit from the "switching costs" that preclude customers from switching-over to competing (even superior) solutions. In other words, products that get a user to commit time, knowledge and/or resources to them are likely to continue to be used even in the face of superior products given the cost of switching to alternative products. An interesting point the book makes is to look at lock-in and switching costs not only in terms of your product, but your collaborators and complementors as well. 4.Fundamental to success is leveraging the power of positive feedback, or network effects. What this means is that the value of your product is a function of the total number of vendors, partners and endusers participating in its "network."

Some specific strategic considerations:

1.Versioning: create different versions of your products tailored to the need of different groups of customers. This allows customers to select the version that best meets their needs and enables you to pick up as wide a base of customers as possible (e.g., Quicken, Quicken Deluxe, QuickBooks). Specific mechanisms for accomplishing same are: delay, user interface, convenience, image resolution, speed of operation, flexibility of use, capability, features and functions, comprehensiveness, annoyance, support. 2.The total cost of switching = cost the customer bears + costs the new supplier bears. Types of lock-in: contractual commitments, durable purchases, brand-specific training, information and databases, specialized suppliers, search costs, loyalty programs. 3.The lock-in cycle: brand selection, product sampling, entrenchment, lock-in. Needless to say, the more successful you are at getting customers more locked-in to your products (e.g., taking advantage of proprietary features), the more successful you will be in keeping customers at peak prices. 4.Leveraging your installed base: focus on selling complimentary products (Micorsoft), selling access to your installed base (Yahoo), setting differential prices to achieve lock-in (Adobe's Photo Deluxe for beginners is a low-end product that is often bundled with scanners and gets users hooked on product. Many ultimately upgrade to full version of product, Adobe Photoshop), exploiting first-mover advantages (Ticketnmaster locks customers into long-term contracts). 5.Market adoption dynamics in positive feedback markets tend to evolve along the lines of an S-curve, with the initial adoption period being flat (while the market winner is in doubt). Once an apparent market winner emerges, the adoption rates takes off dramatically continuing until market saturation. In other words, popularity in positive feedback markets is the ultimate metric of success. Hence, perception becomes reality in these markets. Those expected to win in the market do win because second place or third place is tantamount to last place (i.e., having to bear the switching cost of moving to the winning vendor in the market). This is a zero-sum game, where both vendors must proclaim themselves the ultimate winner, and the success of getting out the message is as important as the technical attributes of the product. 6.Evolution vs. Revolution: there are two paths for unseating an incumbent. One is evolution, which is akin to providing an adapter to a legacy technology. The other is revolution, which disregards legacy in favor of improved design (CDs as a replacement for records). Both paths have technical, creative, systemic, performance and legal considerations. 7.Openness vs. Control: This is a key tightrope in the age of open standards. The more open your solution, the lower the bar to positive feedback. With control comes a hedge against commoditization and low margin pricing. Four key vectors are represented: Controlled Migration (Windows 98), Performance Play (Iomega Zip), Open Migration (fax machines), Discontinuity (records to CDs). 8.How standards change the game: Expanded network effects, reduced uncertainty, reduced consumer lock-in, competition for the market vs. competition in the market, competition on price vs. features, competition to offer proprietary extensions, component vs. systems competition. 9.Tactics in formal standard setting: If you can follow a control strategy, you are better off organizing an alliance outside of the formal standards bodies. Search carefully for blocking patents of competitors in the standard definition. Consider building an installed base pre-emptively. 10.Waging a standards war -The key assets in such a battle are: 1. Control of an installed base, 2. Intellectual property rights, 3. Ability to innovate, 4. First mover advantages, 5. Manufacturing abilities, 6. Presence in complimentary products, and 7. Brand name and reputation. Example: Netscape vs. Explorer: Netscape had a huge first-mover advantage over Microsoft that Microsoft was able to neutralize by preempting new users through a number of strategies, including bundling on OS, signing deals with OEMs, bundling content with the browser and giving links to ISPs for making Explorer the preferred browser supported. Both vendors used penetration pricing to set a low bar to using their products. Both vendors also leveraged the expectations management and alliances trump cards to win their places in the market.

Really?
The book starts by proclaiming that neo-classical economics is adequate for explaining the information economy. This claim is not backed up in the book. First, textbook neo-clasical equilibrium theory contains neither money nor 'information'. Second, the book merely discusses qualitatively and nonsystematically ideas like positive feedback and increasing returns that were better presented by Brian Arthur. Third, even asymmetric information is not discussed (Ackerlof and Stiglitz are not even mentioned). Fourth (or zeroth), there is not a single empirical graph in the entire book, and nothing of modern ideas of network theory. So I would say that the book is more or less on the same level as Kelly's (pre-bubble-bust) "New Rules for the New Economy". All of these books implicitly hype the unregulated free market, in the face of both qualitative and empirical evidence that unregulated markets are not only unstable but are detrimental to human health and well-being.

The Best Among Analysis of Network Economy
It was astounded by what descriped in the opening of the book: at first, the events seem to be at the current, but then they were happened at the last turn of century!

It is still the best anlaysis of network economy among 5 books that I read about, though 2 of which are also from Harvard. This book just touches the heart of network economy, and it gives me a lot to further analyze the continuous economics events happening in the globe.

Fascinating
I read this for an information-age econ class I'm taking, and I really liked it. The authors refute the idea that traditional economic rules don't apply to the age of computers, information trading and cyber sales. They make a convincing case that it's all the same econ, just a new application, and I learned a great deal from it about both the traditional models and the economics of selling information. I really recommend it for anyone. It's very readable, accessible and cogent. ... Read more

Book Description

All New Preface by the Authors

For years pundits have predicted that information technology will obliterate everything-from supermarkets to business organizations to social life itself. But beaten down by info-glut, exasperated by computer crashes, and daunted by the dot com crash, individual users find it hard to get a fix on the true potential of the digital revolution.John Seely Brown and Paul Duguid argue that the gap between digerati hype and end-user gloom is largely due to the "tunnel vision" that information-driven technologies breed.We've become so focused on where we think we ought to be-a place where technology empowers individuals and obliterates social organizations-that we often fail to see where we're really going. The Social Life of Information shows us how to look beyond our obsession with information and individuals to include the critical social networks of which these are always a part. ... Read more

Reviews (43)

A View of IT from a Social Context
I enjoyed reading this thoughtful book, which evaluates and analyzes the role of technology in a balanced social context. I learned to appreciate a different perspective - a perspective where information technologies are placed in a balanced contextual relationship to social values, and to human needs and relationships. Other books I have read survey technology from the standpoint of technological determinism, or as the book says, from the standpoint of the "blinkered euphoria of the infoenthusiast." This book is a good reading and it seeds deeper discussion and thought.

Since I work in the field of distance learning, I found Chapter 5, "Learning - in Theory and in Practice," Chapter 6, "Innovating Organization, Husbanding Knowledge," Chapter 7 - "Reading the Background," and Chapter 8, "Re-education," particularly interesting and relevant. The authors identify three differences between information and knowledge: 1) knowledge usually entails a knower (the person who knows), 2) knowledge appears harder to detach (than information), and 3) knowledge requires assimilation. So these days, with all the talk about hot distance education trends and increasing on-line and other technology-mediated educational programming, we need to remain mindful of the need for technology-mediated programming to empower folks to learn, i.e., acquire and assimilate knowledge.

I also appreciated Brown and Duguid's insightful discussion regarding changes in higher education. It is true that an opportunity exists to provide greater access to higher education through the expanding use of information technologies. But, it is important to distinguish the current hype about distance learning from the reality of what really is currently available and accessible. The authors also draw distinctions between social distance and geographical distance and the dangers of polarization. I also agree that the goal should be access to higher education.

Full of ah-ha moments, though a bit of a slow read.
I just finished reading The Social Life of Information, by John Seeley Brown and Paul Duguid. This was not the quickest read; it's a business book with the obtuseness of vocabulary that implies. However, if you're a computer person with any desire to see your work in a larger context, this is a book you should read. In it, they examine eight separate areas in which computers, and the internet in particular, have supposedly changed our lives (this is typically called 'hype', though the authors don't use the word) in the latter years of the 20th century. (This book is copyright 2000.) You probably remember some of these claims: the death of the corporation, of the university, of paper documents, of the corporate office. In each chapter, they review one claim, show how the claim's proponents over-simplify the issue, and look at the (new and old) responses of people and institutions to the problem that the claim was trying to solve. They also examine, in detail, the ways in which humans process information, and how the software that is often touted as a replacement simply isn't.

I really enjoy 'ah-ha' moments; these are times where I look back at my experiences in a new light, thanks to a theory that justifies or explains something that I didn't understand. For example, I remember when I started my first professional job, right out of college, I thought the whole point of work was to, well, work. So I sat in my cube and worked 8 solid hours a day. After a few months, when I still didn't know anyone at the office, but had to ask someone how to modify a script I was working on, I learned the value of social interaction at the office. (Actually, I was so clueless, I had to ask someone to find the appropriate someone to ask.) While examining the concept of the home office, the authors state "[t]he office social system plays a major part in keeping tools (and people) up and running." It's not just work that happens at the office--there's collaboration and informal learning.

I've worked remotely in the past year for the first time, and anyone who's worked remotely has experienced a moment of frustration when trying to explain something and wished they were just "there," to show rather than tell--the authors refer to this process as 'huddling.' When someone is changing a software configuration that I'm not intimately familiar, it's much easier to judge correct options and settings if I'm there. The authors explain that "[huddling] is often a way of getting things done through collaboration. At home with frail and fickle technologies and unlimited configurations, people paradoxically may need to huddle even more, but can't." This collaboration is even more important between peers.

Reading about the home office and its lack of informal networks (which do occur around the corporate office) really drove home the social nature of work. After a few years at my company, I had cross-departmental relationships (often struck up over beer Friday) that truly eased some of my pain. Often, knowing who to ask a question is more important than knowing the answer to the question. It's not impossible to build those relationships when you're working remotely, but it's much more difficult.

Another enjoyable moment of clarity arose when the authors discussed the nature of documents. I think of a document as a Word file, or perhaps a set of printed out pages. The explicit information (words, diagrams, etc) that I can get from the document is the focus (and this is certainly the case in document management systems sales pitches). But there's a lot more to a document. How do I know how much to trust the information? Well, if it's on a website somewhere, that's a fair bit sketchier than if it's in the newspaper, which is in turn less trustworthy than if I've experienced the information myself. Documents validate information--we've all picked up a book, hefted it, examined it, and judged it based on its cover. The authors say "readers look beyond the information in documents. ... The investment evident in a document's material content is often a good indicator of the investment in its informational content." Just as if someone says "trust me" you should probably run the other way, information alone can't attest to its own veracity. The authors also look at aspects to documents (like history, like feel, like layout) that simply aren't captured when you treat them as streams of bits.

And there are many other examples of 'hype' that are deflated in this book, and a few other 'ah-ha' moments as well. As I stated above, this is a great read for anyone who thinks there is a technical answer to any problem (or even most problems). By taking apart various claims, and examining the truth and untruth of those claims in a real world context, these two authors give technology credit where it's due, while at the same time explaining why some of the older institutions and important factors in our lives will remain around. Reading this book was hard work, but understanding what the authors say gives me yet another way to relate to non-technical people, as well as fend off the zealots who claim, in a knee-jerk fashion, that more software solves problems. I majored in physics, in college, but minored in politics. It always seemed that the people problems, though more squishy, were more interesting. This book is confirmation of that fact.

Valuable idea towards the new IT century
Living in this new century, Information Technology plays a very important part in our daily life. However, as the world is flooded with information, meaningless of the mass information become a questionable matter in return.

This book is just about some ideas concerning the new technology and the new world information. People nowadays know the importance of information but they always missed the limitation of it. As mentioned by the author, increased in information is not necessary equivalents to increased in the value and meaning of it. Controlling the flow of mass information became a critical issue and solutions like better processing and improved data are suggested for improvement.

The book raised an essential element in the IT world, that is the social network, which in fact is playing the core role in this new technology world. Without the help of socialization, technology cannot grow so fast into our daily life. Think about facing problems about how to operate a new version of Microsoft windows, majority of new users would seek advice from those they knew rather than seek helps from the ¡§help¡¨ menu or instruction guidelines on the internet. Therefore, social context plays an important role in helping information and technology become more valuable to human.
It is the truth that even the professional technicians cannot solve problems by themselves sometimes and what they would do is to discuss with colleagues and share experience and knowledge with each other.

I agree that information itself has little meaning; it becomes valuable only after we digested and changed them into knowledge. Without doubt, technologies can ease our learning of knowledge and save much time. Therefore, they all have close relationship with each other.

This book is worthwhile to read and I have several learning insights from it. For instance, the difference between information and knowledge, IT is not as powerful as what I think before and there are still many rooms for improvements. The author pointed out an important term, Tunnel Vision, which means looking at a particular thing in a narrow vision and ignoring other things around. Whenever we try to focus on a certain issue, we should mind the thing around, broader vision is better to help us in getting a more objective view.

In addition, it is informative in clearing our misunderstandings on IT development and there are some good points raised by the author like those I have mentioned before.

Lets go forward to the past
This is a remarkable book, not simply in terms of its insights on how technologies can be misguided if they do no recognize the underlying social structure that they are there to support, but also with regard to the release of this book in March of 2000 at the height of the dot-com boom.

In this book you will not find technological evangelicalism or ideas about how the Internet can change the world, but you will find thoughtful discussion about why online universities need the value of the offline university, why a knowledge economy cannot be understood in terms of a manufacturing paradigm of inter-changeable parts, why Chiat-Day's unstructured office design was an interesting concept but a failure in supporting the social structure of an office, and why groups of like-minded businesses will cluster in the same geographical area even though new technologies would elminate the need for proximity.

This book is positive about technology, but asks to look first at the real impact and real opportunity. While this is an amazing book that I would highly recommend to everyone interested in this subject, I did think the delineation of new technology and existing social context did not explore emergining social patterns as a result of technological change. We can only hope for a book in the future on this topic by these authors

Engaging Introduction to a Neglected Topic
This book offers a counterargument to the claim that more information (and more Information Technology) will magically make life easier. It is not an argument against technology, but it is a call for more realistic expectations when it comes to things like telecommuting, the "paperless office", and the virtual university.

The authors' engaging tone helps to overcome the dryness of some of the material. As someone who has spent a good deal of time in online communities, however, I felt that the book (and its authors) might have benefitted from a closer look at some of the more social online communities.

Like any book on technology, of course, this book faces the problem of quickly becoming dated, particularly when the authors look into the (possible) future, but it serves as an excellent introduction to the topic. It also includes a bibliography, for readers wishing to delve more deeply into the history and studies behind the book. ... Read more

Book Description

As companies look for ways to unlock shareholder value, restore investor confidence, and adapt to uncertainty, the project portfolio is a smart place to look. Why? Because companies' project initiatives have grown faster than their ability to manage them-affecting the return on trillions of investment dollars while failing to prepare companies for today's unpredictable environment.

Connecting the Dots argues that the portfolio is a company's future currency-the truest measure of organizational intent. And the best way to leverage this currency is through greater alignment.

Simply put, alignment is about better matching the company's portfolio to its objectives and the uncertain environment. Connecting the Dots employs a practical, "play the hand you are holding" approach, providing a balance of concepts and roll-up-your-sleeves guidance on how to:

* Determine how well aligned-or misaligned-an organization is today

* Apply tools that reveal opportunities to reduce portfolio risk while increasing the economics of a company's portfolio

* Instill more adaptive mind-sets to better respond to whatever future presents itself

Executives already know their portfolios are not delivering as expected. This guidebook helps "connect the dots" between an organization's objectives and its project investments, capturing hidden value today while better preparing for tomorrow.

... Read more

Reviews (11)

Insightful with practical advice....worth the read
I read about this book in CFO & CIO so I picked up a copy. For a book written by a professor and a consultant, I found it to be very practical and easy to understand. As a turnaround manager I read a lot of business books and strategy publications and was pleasantly surprised at how approachable, yet valuable the book was. I checked out the documents featured on the book's website (...) and found them to be very useful and comprehensive. In fact, I will probably use some of these documents as frameworks for a project I am currently working on for my client.

Overall, I think the book does a great job at outlining a practical framework and approach to portfolio management. What's more, the book's concepts and tools seem fairly easy to implement....which is always a good thing.

Finally a practical set of IT portfolio management tools!
Connecting the Dots is a great read for anyone working in IT management. It can help you gain better control of your capital expenditures and information technology projects - both critical success factors in our industry.

Some of the ideas in the book are new and some aren't, but the book has done a great job at simplifying these concepts (ie. portfolio management) and making them accessible and usable. Instead of the usual 'pie in the sky' statements, this book dives into a company and illustrates how the tools and frameworks can be used in a typical business. It's refreshing to find the kind of book that can help you manage the execution of these issues.

The book claims that a company's project portfolio is what moves it into the future and provides great tools and techniques that teach you how to get your company to focus on producing business results and think about the bigger picture: where all these projects are actually taking your organization. The book also does a good job at helping you bridge the technology and business sides of an organization even though I could have done without the business history lesson in Chapter 2.

This book can easily be read in two to three hours. I just read it over the weekend and was able to start applying some of the ideas.

Good book on balancing the project portfolio thru process
Many organizations approve any project that sounds like "a good idea". This "soda straw" perspective is a sure way to over-task people, make project cost and delivery unpredictable, and ensure a poor reputation for the organization executing projects. While business leaders do not set out to cripple and distract their organizations, the lack of an institutionalized process frequently yields poor results. While this book addresses the narrow space of project alignment with organizational objectives, the authors propose a framework and tools that organizations with the commitment to follow it through can use to get optimum results from their project portfolio. Specifically, the approach offered by the authors helps organizations align their project portfolio with corporate objectives, align individual projects with one another, and enable organizational flexibility.
The process provides a certain rigor, but those seeking to implement this process in their organization should consider 1) first implementing a functional basic project portfolio management process, 2) ensuring that the process proposed in this book is a good match to their organizational culture, and 3) that in implementing this process they do not over-engineer their project portfolio management process.
Those proposing this process for adoption, or who are conducting a project portfolio alignment workshop, may wish to visit the book Website (HBSP), which has Microsoft PowerPoint slide presentations and graphics available for download. This Website is a useful adjunct to the book.
This is a useful book for project portfolio managers in organizations who want more rigor in their project portfolio management process.

Utility of the Information
The value of the book, in my view, lies in the following attributes:
• The authors present complex ideas in an easy-going, not scholarly style, making the book easy to read. They use graphics to communicate concepts like frameworks and tools, and they employ a case-study approach to illustrate application.
• The framework consisting short- and long-term objectives along with organizational trait objectives provides for a balanced perspective.
• The alignment tools provide an approach to view projects in a portfolio view. This allows the portfolio management team to align projects and the portfolio with organizational direction, improve project efficiency, manage risks, and achieve flexibility.
• The framework and tools consciously align the project portfolio with organizational goals, bringing focus to the portfolio.
• Workshop attendees can use the tools to gain fresh a perspective of projects instead of a traditional, organizational alignment point of view where, say, projects are always associated with the division who sponsors the projects.
• Incorporates a change management perspective by asking how much change an organization can digest in a given time period.
• Supports and promotes program management by forcing analysis of the interdependencies of projects and project deliverables.
• Supports and promotes spiral (iterative development) through the "project chunking" perspective.
• Aids the risk management process by balancing project benefits versus risks in the project proposal and review process.
• Portfolio managers or teams can apply the framework and tools in a step-by-step fashion, reducing anxiety about "how to eat the elephant". This stepwise approach supports workshop breakout sessions.

Application of the Framework and Tools
Several questions arise when one considers if one can apply an authors approach to solving business problems; is the approach practicable.

Position of the Framework in the Larger Project Portfolio Management Context
If the project portfolio management process includes 1) understanding supply and demand (people, money and projects), alignment of decision boards with authority, project assessment, and continuous process improvement (IPS Associates and Stanford APM), this framework fits toward the end of that process spectrum. This book does not describe the overall project portfolio management process, or how to implement project portfolio management in an organization. This book really answers the question "Now that I have a project portfolio management process in place, how do I mature my portfolio alignment and balance process?"

Feasibility, Suitability and Acceptability
For organizations which have implemented project portfolio management and wish for more rigor in the project-business alignment sub-process, this book is a credible offering. One would expect that if a portfolio management team applied all the tools in this book to their portfolio that the result would be 1) a considerable time investment and 2) a better aligned portfolio. The portfolio management team must therefore be willing to take the time to 1) learn several tools and 2) apply the tools in a step-wise and iterative fashion over time.
The framework, tools and examples emphasize application in a business (for profit) context. Practitioners in governmental or other not for profit organizations will need to critically review, tailor and possibly adapt the framework and tools to their purposes.
Organizations with a small number of projects and who have portfolio management team members who are more inclined to make decisions quickly, who are not possessed with an engineering or analytical mindset may think that they do not need or have the patience for such a process. Team members may respond to this approach saying "I'll just use my business experience and common sense to achieve balance in my portfolio". While this statement may or may not be true, I would expect this response in some cultures. One approach to this may be for the portfolio management support office to compile the data, apply the tools, and make a staff recommendation to the portfolio management team for decision.
While the authors bring both academic (McFarlan is a professor) and business experience (Benko is a consultant) to this book, they cite no studies to support the effectiveness of their approach. Therefore, organizations which require empirical evidence of process effectiveness before accepting or implementing a new business process may be resistant to implementing this process.

References, Footnoting and Bibliography
This book is well referenced, footnoted and indexed. This increases the utility of the book for one who has first read and understood the book.
One can often tell when an academic was on the team of authors; the footnoting is excellent, and the Notes section (Benko and McFarlan 221-30) is a useful resource for exploring other sources of information for further research. Specifically, the notes section is ample at nine pages, the lexicon is helpful with three pages of content, and the index is well populated with nine pages of indexed words.

A workable and appealing alignment framework
Consultant Cathleen Benko and business professor McFarlan come into alignment in this tremendously practical book. Today's companies need to bring their misaligned, overlapping, and inconsistent projects into alignment through "frontier living". This means delivering results in the present while adapting for the future's business context by using four "traits" to configure your project portfolio for confusing, volatile, and unpredictable conditions.

The title of the book refers to the need to "connect the dots" between an organization's objectives and its project investments to create and balance present and future value. The book's plethora of tools combined with the easygoing writing style makes it engaging and painless to absorb. Benko and McFarlan can be forgiven for overstating the role of project alignment - that is, after all, the standard book author's tendency. It is true, however, that companies project initiatives total up into the trillions of dollars and it requires no stretch to accept the claim that those initiatives have grown faster than companies' ability to manage them. Benko and McFarlan focus on the project portfolio as the most promising key to unlocking value, arguing that the portfolio is a company's future currency. We find their underlying principle that "companies are better served by adapting themselves for the future rather than by trying to predict its destination" to be a sound one.

Alignment, in this book, specifically means aligning three drivers of business performance: a company's project portfolio with its objectives; the projects in the portfolio to each other; and the portfolio and company's objectives with the ever-changing realities of the business context. To prosper on the "information frontier", certain shifts in mind-set - "traits" - are needed. Along with operational short-term and strategic long-term objectives, these constitute the organization's *intentions*. Four traits are used throughout the book as each of the various tools are explained and applied: Eco-Driven (effective collaborations), Outside-In (looking at yourself the way others look at you), Fighting Trim (agility, coordination, and options orientation to deal with uncertainty and respond to change), and House in Order (provisioning the other traits to enable cross-enterprise collaboration).

The seven alignment tools in this book fall three groups. The Trait Meter assesses, plans, and measures trait development according to the four traits. Once this first step is completed (which includes creating an Intentions Framework), the second group of diagnostic tools comes into play: The Intentions, Sides, and Right Brain tools. These measure the nature and size of the alignment opportunity, identify organizational bias and sort projects into business activities, and identify change capacity issues. The third group of tools - Common Threads, Project Chunking, and What-If Planning - focus on building flexibility into the portfolio.

Working through the book for real will, of course, be far more challenging than merely reading it. But the authors have done a good job of clarifying important issues of alignment and have provided a workable and appealing framework and toolset for tackling those issues.
(3 stars from me is good. 4-star ratings are given too easily.)

Strong, simple decision making for your services portfolio
The strength of this book is it's simplicity and graphical representation of decision frameworks. For most companies this is a strong tool for internal development planning and compliment to Six Sigma initiatives. For consultants, this can be used to plan your services portfolio. Well written and an enjoyable read. ... Read more

Book Description

Imagine thinking about your company's information technology inthe same way that you think about its investment portfolio: as a bundleof assets that--when managed right--will generate revenues and savings. Here's just such a framework for leveraging IT (technology, networks,data, and software)--one that enables business managers to make theimportant decisions about the potentially confounding mix ofhigh-technology that influences near- and long-term planning, affectsthe ability to support customers, and dictates the flow of dailyoperations.This hands-on resource, complete with benchmarks and casestudies, creates the common ground where both management and IT canmeet, communicate their goals, and agree upon the best plan for gettingthere.

Drawing upon their rigorous research with over 100 topmultinationals, the authors present a rich and varied range of examplesof IT investment strategies that have reaped rewards for firms such asCitibank, Honda, Johnson & Johnson, Ralston Purina, the DevelopmentBank of Singapore, and Telstra.They include proven guidelines, alongwith lists of essential questions that managers must ask themselves andtheir IT staff in order to compile a competitive IT portfolio as wellas measure the results.For senior managers seeking to link strategyto their IT investments, Leveraging the New Infrastructure provides thepower to make technology not just a tool, but an asset that generatesvalue. ... Read more

Reviews (11)

REQUISITE READING for Information Age strategists.
Information technology has made possible the Information Age. Today, organizations are wrestling with the monumentally complex decisions about how to invest in this ever-advancing technology-investment decisions that are shaping the competitive destiny of corporations. How such decisions are made and how they should be made is at the heart of this book.

The central theme is linking strategy with a firm's IT portfolio: its total investment in an IT infrastructure. The authors explore four approaches to such infrastructure investment decisions, ranging from none to an enabling view that positions the firm to optimize its IT core competence in a strategically flexible manner. The authors have synthesized the approach market leaders take to leveraging IT. This books reveals how IT creates business value, and how top performing firms use IT in alignment with their current and future needs and goals. The book's concluding section addresses how to manage the IT portfolio for optimum business results. The book includes, among many of its nuggests, a useful grouping of infrastructure services into 8 management clusters.

Reading this book is a delightful educational experience; it is also REQUISITE READING for all strategists. Reviewed by Gerry Stern, founder, Stern & Associates, author of Stern's Sourcefinder The Master Directory to HR and Business Management Information & Resources, Stern's CyberSpace SourceFinder, and the Compensation and Benefits SourceFinder.

Strategically investing in IT to achieve the market edge.
Information technology has made possible the Information Age. Today, organizations are wrestling with the monumentally complex decisions about how to invest in this ever-advancing technology-investment decisions that are shaping the competitive destiny of corporations. How such decisions are made and how they should be made is at the heart of this book. The central theme is linking strategy with a firm's IT portfolio: its total investment in an IT infrastructure. The authors explore four approaches to such infrastructure investment decisions, ranging from none to an enabling view that positions the firm to optimize its IT core competence in a strategically flexible manner.

The authors have synthesized the approach market leaders take to leveraging IT. This books shows how IT creates business value and how top performing firms use IT in alignment with their current and future needs and goals. The book's concluding section addresses how to manage the IT portfolio for optimum business results. The work includes a useful grouping of infrastructure services into 8 management clusters. Reading this book is a delightful educational experience; it is also requisite reading for all strategists.

Thorough Survey
I found this book quite helpful for my team. It covers the current issues quickly and well. Although it is repetitive, the book presents a tapestry that steers thinking in IT toward strategic alignment. The book lays the foundation for the holistic integration of IT and business strategy, using techniques (though not explicitly) of portfolio management, continuous improvement, teambuilding, and enterprise architecture modeling.

I highly recommend this book. It should be paired with a more enterprise architecture centric book to provide a complete actionable background. That said, the book stands alone to plant the foundation for successful IT/Strategy convergence.

start with 20 pages
This book has a tendency to reiterate the same concepts over and over, but they are 'sensible' concepts. Managing the projects and having measurements for the use of infrastructure in todays businesses is critical. More important is the methods used to weigh the benefits of investing more into a global infrastructure vs. a LOB infrastructure. the second half of the book reads faster than the first, but 20-30 pages a day will get you through it in know time and allow you to consume the message.

A Two Hi-Liter Book
Super book! This book adds value to something most companies are yet to figure out they have or need--an IT infrastructure. The book makes a case that the infrastructure is the key to competitive edge. Sold! I believe it. Read this book and you'll also be convinced.

Regrettably, some of the readers won't "get it" hence the competitive edge. If you don't get, check your altitude. You may be flying too low. In my view, infrastructure only looks like infrastructure from on high. Think end to end. The secret is to gain enough altitude to see it. Believe me--whether you see it or not--it's there and costing you big bucks! So soar! Gain altitude until you see the infrastructure. Let this book be the wind beneath your wings.

Don't just take Weill and Broadbent's word for it. What is your favorite IT guru saying about this subject?

You will undoubtedly conclude that this book is on target and on the money! Read it. Let it soak in. Then start Leveraging the New Infrastructure. ... Read more

Reviews (2)

A roadmap for process innovation and improvement
Davenport presents a practical roadmap for process improvement and process innovation which I have found very useful as a practitioner. Although not prescriptive, the text provides practitioners with useful very insights which can form the basis of an organisation's business process innovation/improvement methodology.

Must read
This is a well-written book on the subject of process or business reengineering. It is written in a non-technical language, wastes few words, and covers the entire spectrum of topics that are essential to a successful reengineering effort. The discussions place a significant emphasis on the role that information or computer technology play today in the reengineering effort, particularly how this technology can facilitate the overall effort. I found the book largely sticking to the overall thread however at times it did become a wee bit academic to flip through the sections. All in all, a very good read. ... Read more

Amazon.com

God forbid that doing business and making money on the Internet should bear any resemblance whatsoever to the past millennium of bricks-and-mortar capitalism--that would be too easy.Nope, it's a whole different ball game now, and the new rule is: adapt or die.At least that's the message behind Digital Capital.From the three principal cyberconsultants at the Alliance for Converging Technologies (one of whom, Don Tapscott, authored the bestsellers The Digital Economy and Growing Up Digital), comes a paradigm for global takeover: the business web, or "b-web" for short. In their words, b-webs are "strategically aligned, multi-enterprise partner networks of producers, suppliers, service providers, infrastructure companies, and customers that conduct business communication and transactions via digital channels."Some examples are eBay, Cisco, Dell, MP3.com... in short, any enterprise that a) knows how to form lateral partnerships with other goods-or-service providers, and b) eliminates the role of planes, trains, and automobiles--not to mention lots of time, money, and human energy--by doing almost everything over the Internet. Not only do the authors provide a wealth of b-web case studies (including Charles Schwab, Priceline.com, Webvan, AT&T Solutions, and OptiMark in addition to those mentioned above), they outline a step by-step process for weaving a b-web of one's own.

Too often, Digital Capital's sound ideas come marinated in think-tank jargon so alienated from plain English as to be nearly impenetrable. Consider: "Disaggregation leads to 'disintermediation' and 'reintermediation'," which, believe it or not, isn't a line that French film theorists use in pick-up bars, but the simple statement that business webs manage to cut out a lot of the traditional steps between producers and customers. Now why couldn't they just have said that?No matter. After you nibble through the self-important MBA-speak, you'll find a smart look at how online shops are rewiring early 21st-century capitalism. --Timothy Murphy ... Read more

Reviews (36)

Establishing Improved Business Models in a Connected Age
This is one of the few business books that dare address the central issue for most companies today: How to establish competitively-advantaged business models for serving customers that capture the power of the Internet to work with others. Anyone who doesn't know what they want to do for an Internet-based business model or doesn't like the one they have will get great benefit from this book.

Like Blown to Bits, Digital Capital looks squarely at the economic impact of the Internet on existing business models. But Digital Capital goes further in laying out the necessary steps to build on five business models that have been working that involve creating business networks that are Internet enabled (b-webs in the parlance of this book).

You will instantly recognize the five business model types, because the authors provide lots of examples (at least some of which will be familiar to you) and lists of characteristics of each type.

You will also know how to go from where you are to reaching one of these archetypes by the strategy directions the authors provide. The only drawback of this section is that the language gets a little b-schoolish (and full of very long words).

The conceptual basis of the work is sound. The only two points that were not discussed were (1) how these models might evolve into more powerful models in the future, and (2) how they might merge with each other.

Where the book is at its best is in helping you think through how to add other companies into a related web of interests to get more done -- thinking that goes well beyond the well-known outsourcing mindset.

Good luck with improving your Internet-based business model! Keep in mind that technology will evolve rapidly and enable some new business models that can only be dreamed about today in just 3-5 years. So be sure to look at the irresistible forces of technology development in thinking ahead.

Prospering from Electronically-Connected Business
Digital Capital is one of the few business books that dare address the central issue for most companies today: How to establish competitively-advantaged business models for serving customers that capture the power of the Internet to work with others. Anyone who doesn't know what they want to do for an Internet-based business model or doesn't like the one they have will get great benefit from this book.

Like Blown to Bits, Digital Capital looks squarely at the economic impact of the Internet on existing business models. But Digital Capital goes further in laying out the necessary steps to build on five business models that have been working that involve creating business networks that are Internet enabled (b-webs in the parlance of this book).

You will instantly recognize the five business model types, because the authors provide lots of examples (at least some of which will be familiar to you) and lists of characteristics of each type.

You will also know how to go from where you are to reaching one of these archetypes by the strategy directions the authors provide. The only drawback of this section is that the language gets a little b-schoolish (and full of very long words).

The conceptual basis of the work is sound. The only two points that were not discussed were (1) how these models might evolve into more powerful models in the future, and (2) how they might merge with each other.

Where the book is at its best is in helping you think through how to add other companies into a related web of interests to get more done -- thinking that goes well beyond the well-known outsourcing mindset.

Good luck with improving your Internet-based business model! Keep in mind that technology will evolve rapidly and enable some new business models that can only be dreamed about today in just 3-5 years. So be sure to look at the irresistible forces of technology development in thinking ahead. The current crash of the dot coms is just the beginning of what will be a period of enormous innovation and progress.

Don Tapscott's Way... 'Clear Vision' & 'Great Thinking'


Like his other books, this 'Digital Capital' will bring us to a new level of thinking about how Net-Economy will work and shape the world we've already known.

Tapscott's clear vision about 'digital money' will surely give us a higher perspective about what works and what doesn't work in this internet 'boom and bust' era.

One of the best Tapscott's book since 'Digital Economy'.....

Digital Capital: Harnessing the Power of Business Webs
Digital Capital articulates the characteristics of web based business models and illustrates how the application of these business models can rapidly change the status quo. Ample examples and quotations from business web innovators show the practicality of the models while the authors' framework offers guidelines to explore and examine business web opportunities. I can now better run and build my company's digital future.

Putting your money where your business should be
If the University Texas is correct, the Internet economy is "increasingly being driven by traditional companies adapting Internet technologies." This book discusses how other companies are doing it.

Don Tapscott is a must for any executive looking for tangible case studies. Find more than just a justification for your Internet initiative--find out how other companies are doing it. Fight Coase's Law through more efficient outsourcing; Streamline your partnerships; And more...

I recommend this book to all of my Internet marketing students and would love to make it required reading. ... Read more

Book Description

In this paperback edition of the acclaimed book The Death of Distance, journalist Frances Cairncross of The Economist shows us how the world is changing with the introduction of the Internet and wireless technology.First published in 1997, Cairncross's provocative book-based on evidence from two sweeping surveys on telecommunications-argues that new communications technologies are rapidly obliterating distance as a relevant factor in how we conduct our business and personal lives.

Now, the author has substantially rewritten and updated the book, with 70 percent new data, fresh analysis, and new company examples to offer a look at the economic landscape ahead.Cairncross argues that the story today is not only the diminishing importance of distance, but also the mobility and ubiquity of technology.New material covers the implications of recent events and debates including:

* the rise and fall of the dot-com phenomenon;
* the spread of mobile telephones and other wireless communications;
* the wave of technology mergers;
* the authenticity of the "new economy;"
* diverging trends in business-to-consumer and business-to-business e-commerce;
* the restructuring of the organization in the wake of the Internet;
* the increasing impact of patent law on the communications economy;
* the so-called "digital divide";
* and the democratizing effects of communications technology on companies, governments, and society.

With an updated "Trendspotter's Guide" that offers a snapshot of the new opportunities and challenges we face in a wireless world, this timely book will help all of us envision and enjoy an increasingly connected future. ... Read more

Reviews (14)

The Impact of the Interactive Age, for Everyone
This is an easy-to-read, interesting book for business people and others who want to know how the Interactive Age will change the world. Francis Cairncross, who writes in The Economist for people who think, has studied and thought a great deal, and it shows. Cairncross says that the improvements now being developed in telephony, television and the Internet will touch every single life within a few years. Fundamental changes in how we learn, get food, deal with friends, enemies and lovers, make money and pay for goods are definitely in the works. And that distance will no longer dictate how we communicate. This is not fantasy, this is the right stuff. Anyone who expects to be around longer than a very few years had better listen up.

A look into the future
In this updated paperback edition of the 1997 original, Frances Cairncross of The Economist expounds the theory that, with the introduction of the Internet and new communications technologies, distance as a relevant factor in how we conduct our business and personal lives is becoming irrelevant. This, she claims, will be the single most important economic force shaping all of society over the next half century.

This revised version covers more topics than the original. It explores the rise and fall of the dot-com phenomenon, the spread of mobile telephones, the wave of hi-tech mergers, the lasting power of the new economy, trends in e-commerce, organizational restructuring to adapt to the Internet, the impact of patent law as it pertains to communications, and the democratizing effects of communications technology on worldwide societies as a whole.

Francis Cairncross writes eloquently and convincingly about the cataclysmic changes sweeping through our means of communication. She discusses how the consequences of such changes will tilt the balance between large and small, rich and poor, as they influence where companies locate, what kind of work people do, how governments raise revenue, which businesses succeed etc.

Amongst the most striking trends, she sees citizens with a greater freedom to locate anywhere, thus leaving governments to reduce tax burdens in an attempt to attract higher income-earners. She sees, too, the continuing rise of English as a global language in business and commerce. She foretells, too, of new opportunities and challenges we will face in a wireless world.

I disagree with those who claim that, just because we have the ability to do something, doesn't mean we will do it and change society. If people don't want mobile phones, why do they buy them? If people don't like the Internet, why do they use it? My own experience (Brit living in France, working in various European countries, employed by an American company) tells its own story. Twenty years ago, my situation would have been considered almost unique. Today it is commonplace. AND YOU AIN'T SEEN NOTHIN' YET !

Prudent Optimism
I recently read this brilliant book before reading Cairncross' more recently published The Company of the Future. I highly recommend both and suggest that they be read in the order in which they were written.

In this volume (first published in 1997), Cairncross carefully organizes her material within ten chapters following a Preface in which she observes: "The new ideas in this book are about the many ways in which the most significant technological changes of our time will affect the next century -- and your life. You will find a preview of the most important in 'The Trendspotter's Guide to New Communications' that immediately follows this preface; the rest of the book sets out to interpret and elaborate these key points." in which she identifies and then briefly discusses "Ten Rules for Survival." I have a minor quibble with the title because I think that technological changes to which Cairncross refers have not caused the death of distance; rather, they have re-defined it.

With regard to the aforementioned important developments, Cairncross identifies and then briefly discusses 30 which range from "The Death of Distance" to "Global Peace." All are valid even as some readers may believe that others should be added to the list or replace some of those included. There are several in which I have special interest, including #27, "Communities of Culture." Cairncross suggests that "electronic communications will reinforce less widespread languages and cultures. not replace them with Anglo-Saxon and Hollywood. The declining cost of creating and distributing many entertainment products and the corresponding increase in production capacity will also reinforce local cultures and help scattered peoples and families to preserve their cultural heritage." Once again, many readers who agree on the importance of such trends may disagree with the implications which Cairncross derives from them. Fair enough.

In the final chapter, "Government and the Nation State," Cairncross duly acknowledges that being able to communicate may not be enough to keep the nations of the earth at peace with one another "but it is a start." Thanks to new technologies now available or which will soon become available, people will become less susceptible to, indeed dependent on propaganda from politicians who seek to stir up conflicts. Cairncross concludes, "Bonded together by the invisible strands of global communications, humanity may find that peace and prosperity are fostered by the death of distance." She held out that possibility in 1997. Whether or not it remains a reasonable possibility is for each reader to determine. As I compose this review, violence continues to erupt in the Middle East and elsewhere; extensive poverty worldwide persists and could become even worse. Death does indeed have many faces.

Written by an economist? No kidding.
It would appear that this book continues the line of technological revolutionists/determinists - who provide no reasons as to why this new 'communications revolution' should be able to change our society apart from wide-eyed 'look at what this technology will allow' type suggestions. Just because we have the ability to do something, doesn't mean everyone will do it and thus change society.

A book like Winston's "Media Technology & Society" highlights, with academic integrity, how SOCIETY drives technological change, not some group of engineers sitting round 'inventing stuff'. This is surely the first revolution dictated by commerce & economics rather than actual social need. As Nasdaq stocks fluctuate wildly, the crash and burn of Iridium surely shows that market driven technology isn't as simple as these types of books make it sound.

This book provides nothing new to the topic and as one reviewer previously noted, fails to come to grips with the true power of money.

What could happen in a world without borders
The Death of Distance Frances Cairncross presents a compelling and thought-provoking analysis of a rapidly shrinking world as she presents a story of a revolution - a technological revolution, where three technologies namely the telephone, the TV and the networked computer are literally making everywhere here. As the senior editor of the Economist magazine, her analyses of world markets not just from an economics perspective, but from cultural, emotional and societal viewpoints is breathtaking. Distance will become irrelvant, she argues and it won't be long before people across the globe will organize their work on the basis of language and three time shifts - one for the Americas, one for Europe and one for East Asia and Australia. She discusses the implications of workers able to earn a living from anywhere and countries finding themselves competing for citizens as people relocate for reasons ranging from lower taxes to nicer weather. Cairncross discusses about 30 major changes likely to result from the technology-driven revolution including a shifting landscape in terms of freedom, privacy and intellectual property, the changing role of government and the implications for the concept of the nation state, citizenship, regulation and laws in a world without borders, in a world where distance is irrelvant. ... Read more

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Philip Evans and Thomas S. Wurster think that the Internet can blow away practically any business, and in Blown to Bits, they examine how the new economy is "deconstructing" industries such as newspapers, auto retailing, and banking while creating new opportunities for others. They write that the "glue that holds today's va