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Consumption Economics: The New Rules of Tech Hardcover – November 1, 2011

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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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Product Details

  • Hardcover: 232 pages
  • Publisher: Point B, Inc. (November 1, 2011)
  • Language: English
  • ISBN-10: 0984213031
  • ISBN-13: 978-0984213030
  • Product Dimensions: 6.4 x 0.8 x 9.2 inches
  • Shipping Weight: 1.2 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (68 customer reviews)
  • Amazon Best Sellers Rank: #38,621 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

8 of 9 people found the following review helpful By Swinford on November 19, 2011
Format: Hardcover 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.
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5 of 5 people found the following review helpful By An Educated Reader on July 6, 2014
Format: Hardcover
This book is an excellent example of bad writing and is unreadable as a result. There are grammar and construction errors in just about every sentence, and apparently no one ever taught the authors that there is supposed to be a logical structure to a paragraph. It reads like a transcript of a couple guys drinking and talking shop. Maybe they know what they are talking about but they are all over the map, blurting out whatever comes into their heads and then nodding thoughtfully about it. If there are points being made they are hidden by the incomprehensibly poor writing.

The introduction is ironically a perfect segue to the text because it’s also a miss-mash of unconnected ideas slapped together and indented to make it look like a piece of writing.

This book has little to offer and it does so very poorly.
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7 of 8 people found the following review helpful By JO$EPH on December 27, 2012
Format: Kindle Edition Verified Purchase
OK, OK I get it. You see the need for tech companies to become more connected with users, similar to how Facebook or Amazon does it. You see the need for them to revamp their offerings in the B2B world so that users are coaxed into new levels of usage an learning so as to exploit the value add of the software offering. You see the threat of commoditization of IT and want to re-introduce differentiation with Micro Transactions, moving IT purchases from CapEx to OpEx. Readers see that this would be a upending of the business model of Tech companies. Got it already! Have you provided an adequate roadmap of how we'll get to the new promised land you advocate? No way!
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3 of 3 people found the following review helpful By Ujjwal Rane on July 8, 2013
Format: Kindle Edition Verified Purchase
I was impressed by the start - where a problem already felt - was so clearly defined. This got my hopes up about the solution it would offer, but there found the book to be tentative, speculative and unconvincing. And finally, the 'solutions' it offered seemed only temporary. What about the time when everyone in the playing field applies these 'solutions'? Could that save our offerings from becoming 'commodities'?
The good part is the framework and jargon it provide to discuss the problem. But be ready to BYOS (bring your own solution :-))
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3 of 3 people found the following review helpful By Kevin R. on November 8, 2011
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.
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1 of 1 people found the following review helpful By Hans Peter Bech on March 24, 2015
Format: Kindle Edition Verified Purchase
As part of the research for my next book “Building Successful Partner Channels” I came across the book “Consumption Economics.” Although the book is not a literary masterpiece (is far too long with far too many repetitions and with illustrations that are confusing rather than illustrative (and unreadable in the Kindle version)) it is still worthwhile reading for its’ thorough analysis of the impact of the “________ as as service” format on an industry that have been dominated by the capital investment format. The software industry that has been blessed by the “pay first - consume later” principle is now transforming to a “pay as you consume” format and the “Consumption Economics” book is worth reading if you are affected by these changes.

The transformation is driven by numerous interests and factors such as fast and inexpensive access to the Internet, the customers’ appreciation of the “pay as we consume” format, the end-users’ option of circumnavigating the CIO and his IT department for new applications, the opportunity of insurgents to disrupt established markets (salesforce.com, Netsuite, Workday, Basecamp, Atlassian, Zendesk, Dropbox, Skype etc.), the reduction in complexity for the user and the enormous economy of scale benefits of using large data centres. With so many drivers and benefits the challenges associated with integration, customisation, privacy, security, availability, survivability and performance will be solved enabling the “________ as as service” format to also deep-penetrate the enterprise markets. Wood, Hewlin & Lah predicts that the transformation will take place in most segments of the market within the next 5-10 years leaving only very small pockets resistant to the consumption format.
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