If you're a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won't be felt in your company's product line. The true disruption will be to your business model. Future customers won't want to pay you high prices out of big CapEx budgets anymore. They will expect lower cloud prices paid from OpEx budgets only when and if they successfully consume the business value of your products. How your company reacts to this risk shift could either accelerate the commoditization of your products or lead you to a new stage of profitable growth. For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the owner's manual for tech company executives who want to drive their company successfully into the next one.
Consumption Economics: The New Rules of Tech
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Editorial Reviews
About the Author
J.B. Wood is president and CEO of the Technology Services Industry Association (TSIA). He is a frequent industry speaker and author of the popular book Complexity Avalanche (2009), and has appeared in Fortune, the New York Times, the Wall Street Journal, and other leading publications. He was formerly the CEO of Prognostics and executive vice president of InsightExpress. Todd Hewlin is managing director of TCG Advisors, a Silicon Valley consulting firm. Previously a partner at McKinsey and a senior executive at Symbol Technologies, he is regularly found in the boardroom of public and private technology leaders advising them on growth strategy and business transformation. His articles have been published in the Harvard Business Review and McKinsey Quarterly. Thomas Lah is executive director of the Technology Services Industry Association (TSIA). Since 1996, he has helped a broad range of companies establish or improve their professional services organizations and is known worldwide for his incisive analysis, strategic thinking, and creative solutions.
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Most Helpful Customer Reviews
7 of 7 people found the following review helpful
5.0 out of 5 stars
Awesome roadmap for understanding the new dynamics of building technology businesses
November 19, 2011
By Swinford
Format:Hardcover|Amazon Verified Purchase
Too often entreprenuers are using old concepts of how to build and grow companies in 2012 and beyond. Unfortunately, the entreprenuer's business models, go-to-market, pricing, and delivery models are all inefficient and wrong. Not only do the old models consume too much capital ... it is not how customers are buying today nor how the fastest growing companies are being successful.
This book clearly articulates the shift in thinking needed to be successful in the future. It is provocative, innovative and yet practical all at the same time. As a serial entreprenuer, angel investor and private equity investor ... this book is a roadmap on how to suceed in today's hyper competitive technology environment and how to create value while building a great business.
The authors have built businesses and advised the biggest and fastest growing technology companies in the world and now have shared their insights in a digestable and articulate manner.
A must read for entreprenuers, CEO's, CTO's, angel investors, Venture Capitalists, Private Equity, and public company investors who are building or buying great companies in the technology space (i.e. software, SaaS, Cloud, Social networking, ecommerce, internet and Web 2.0 companies). I always look for practical concepts to help the entreprenuers I work with ... this book didn't disappoint me.
This book clearly articulates the shift in thinking needed to be successful in the future. It is provocative, innovative and yet practical all at the same time. As a serial entreprenuer, angel investor and private equity investor ... this book is a roadmap on how to suceed in today's hyper competitive technology environment and how to create value while building a great business.
The authors have built businesses and advised the biggest and fastest growing technology companies in the world and now have shared their insights in a digestable and articulate manner.
A must read for entreprenuers, CEO's, CTO's, angel investors, Venture Capitalists, Private Equity, and public company investors who are building or buying great companies in the technology space (i.e. software, SaaS, Cloud, Social networking, ecommerce, internet and Web 2.0 companies). I always look for practical concepts to help the entreprenuers I work with ... this book didn't disappoint me.
2 of 2 people found the following review helpful
By Anthony
Format:Hardcover
Consumption Economics helped me understand the new Global Digital landscape. The authors combine a unique blend of real world experience and academic research methodology to tell the story of what lies ahead for enterprise class information technology. This story is unfolding as we speak however the authors completely bring into focus the trends which as consumers we often overlook. If you work in Technical Support or Services in any capacity this book will give you a complete analysis of the major factors impacting the world economy. From my perspective it is not just a great read but a survival manual for any business executive that wants to start preparing for the major changes that await us.
2 of 2 people found the following review helpful
By Kevin R.
Format:Hardcover
My executive director brought copies of this book back from the recent Technology Services World conference, and our entire service organization is reading it. Fascinating look at the impact of OnDemand, the shift from maintenance contracts to micro transactions in the cloud, and how companies must become more customer centric across sales, marketing, development AND service. Will definitely rankle those that hate change, but change is coming and this book will help technology firms be ready for the future.
1 of 1 people found the following review helpful
Format:Kindle Edition|Amazon Verified Purchase
This is one of those business books that you actually want to finish because it is filled with so many concepts that ring true in business today. I knew instinctively what the benefits of MT's were but had a very hard time articulating the concept. The description of the Risk Shift is so spot on and something that every CIO should understand!! I'm sending this book to my top prospects and customers because I think the net on this is pretty wide.
Highly recommend!!
Highly recommend!!
1 of 1 people found the following review helpful
Format:Hardcover
Consumption Economics the New Rules of Tech is a must read for any business leader. This book captures the shift in business and buying preferences that will shake the world of high tech as we know it today. All aspects of business will change and those that are prepared will succeed and those that fail.... Very thought provoking and has kept me thinking of how we should reshape our business and go-to-market strategies.
1 of 1 people found the following review helpful
By Services VP
Format:Kindle Edition
I have been waiting for someone to write this book. Service's effect on building corporate revenue and profits is poorly understood. This book shows how the cloud will finally convince people what we should have known for years.
2 of 3 people found the following review helpful
By Julia
Format:Hardcover
This book is a must read. Companies have notoriously waited too long to change their business models until it's too late ... think Kodak. Customer expectations have changed dramatically about how they want to acquire access to technology. And those that are brave enough to respond and adapt will be rewarded. Consumption Economics is a very helpful playbook to guide you through this transition.
Format:Hardcover|Amazon Verified Purchase
This is a very insightful book that will change the way you think about technology marketing and the lifetime value of each customer.
Most Recent Customer Reviews
5.0 out of 5 stars
Technology Professional "MUST READ!"
If you work in IT this is a book you need to add to your collection. Are you interested in becoming a commodity?
Published 29 days ago by Phillip C. McDaniel
5.0 out of 5 stars
Mandatory reading for every CxO
Clearly explains the past, present and future trends for IT sales - on-premise moving to Cloud apps., and the different consumption models in play.
Published 1 month ago by P M Sheehan
5.0 out of 5 stars
Exciting examples of change that could frighten you
I read this book as a end user of the software and smartphones that author eludes to and I took the liberty to think how this tech seachange can change other industries in a flash. Read more
Published 2 months ago by Robert Kirk
5.0 out of 5 stars
Fingers on the pulse!
I bought this book because a very highly placed executive at my company recommended it during a meeting. I am glad I did ! Read more
Published 2 months ago by NIRANJAN GADGIL
5.0 out of 5 stars
Fantastic Read
This book is right on the mark. I would highly recommend it to anyone in the tech services industry. A valuable read.
Published 2 months ago by tsterrym
5.0 out of 5 stars
Great read!
This book was very informative and provided valuable insight into the new challenges and solutions for companies in the technology industry today. Read more
Published 2 months ago by Benjamin T Mozzer
4.0 out of 5 stars
Good book with solid evidence and great perspective
Good book with solid evidence and great perspective, anyone who is working with IT vendors should read this book. Worthwhile
Published 3 months ago by richard webbe
5.0 out of 5 stars
Great ides
Great ideas, interesting concepts. A good read for any IT professional. I highly recommend this book. Only some chapters repeated the initial concept over and over again.
Published 3 months ago by Jay
5.0 out of 5 stars
great!
i am a small business owner, the book is insighful and give us prospective were to aim in the next decade to come
Published 3 months ago by Stefano L. Desanto
5.0 out of 5 stars
If you are in IT, this is an important insight into your future!
I would thoroughly recommend this book to anyone, especially leaders, involved in IT. It is what I describe as a "career book" ie one of the few that signal a real change... Read more
Published 5 months ago by KSB
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