Customer Reviews

Digital Capital: Harnessing the Power of Business Webs

5 star:		(29)
4 star:		(9)
3 star:		(2)
2 star:		(1)
1 star:		(0)

 

 

Over the past three or four years I've probably read a dozen books and countless articles on the 'dot.com' world. Almost without exception, these books and articles are exciting while you read them and unsatisfying afterwards: they tend to be full of heady prognostications and promises (we're all going to be instant millionaires if we just "get online") but they don't deliver any concrete advice or action. So I was very pleasantly surprised by Digital Capital. These guys get it: doing business on the Internet means rethinking your business model and throwing out your old assumptions about relationships with competitors, suppliers, and customers. Best of all, they include sections on "key success factors" and "leader's guides" for each of their business models. This book is definitely smarter AND more practical than most others in the field.

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.

Who should read this book? Those who need answers to the following questions:

* What are the driving forces of the digital economy?

* How can my organization manage those forces to its maximum advantage?

* What are the new models of wealth creation? Which is most appropriate for my organization? Why?

* What are the most effective strategies for establishing and then developing value chains, alliances, and distributive networks?

* What are the most important human and relationship elements of digital capital?

* What are the various steps to "weaving" a Business Web?

* What are the best strategies for "harvesting" digital capital?

Given the importance of harnessing the power of Business Webs, if you and others in your organization are struggling to answer questions such as these or if you and they don't even know which questions to ask, I strongly recommend this book. To derive greatest value from it, make it required reading for all key people and then go off-site for 3-5 days and discuss it. Stay wherever you are until you have a game plan...then come back and make it work!

Many books I've read on how the internet will change business consist of musings and mumblings about the trend of the day or compiling a years worth of news clippings and calling it a book. This book is different because the authors have clearly rolled up their sleeves and done some actual first-hand research on what is really happening at the cutting edge of business and the internet. The result of this old fashion, gum-shoe effort shows forth clearly as they rise above the haze of the internet and the trough of dotcom Wall Street and shows the reader what the next generation of e business is all about. Some companies like Cisco have already figured it out and they explain why. The rest of us have our work cut out for us, but at least this book give one a solid idea of where all of this e-business stuff is going. Bravo!

`Digital Capital' offers startups, consultants, and educators a structured look at the micro-economics of b-webs (business webs utilizing Internet technologies).

The well-written, referenced, and structured chapters span in 4 parts:

++ 1- Introduction- value introduction through business webs.

++ 2- New Models of Wealth Creation- agoras, aggregations, value chains, alliances, and distributive networks.

++ 3- The Human and Relationship Elements of Digital Capital- people, and marketing.

++ 4- Strategies for Business Webs- how to weave a b-web, and harvesting digital capital.

Strengths include: the balanced dry (?unemotional) writing style; the excellent use of tables (perhaps best examples seen this year) and figures; the relative depth of the b-web framework and content (b-web strategy design, marketing, staffing etc..).

Unfortunately, about 25% pagecount reduction is possible for the content; and there are several technical errors (e.g. EDI not started in 90s, and Fraunhofer Institute is not just an industrial electronics research company, to name two). Also, perhaps links with formal micro-economic modeling would further strengthen the b-web framework (to this reviewer, it felt a bit MBA-made-up speak, at times (!)).

Overall, a useful mature look at the dynamic economics of b-webs in the global marketplace.

Great book. I particularly liked the chapters on human resources and marketing: too many e-business books get all worked up about technology and ignore these very real and very human elements of doing business. Over the past thirty years I've worked in many fields and many countries, and I've always found that success or failure depends in large part on the strength of your communications infrastructure. This book's quite elegant model of the "business web," in which producers, suppliers, and customers build transparent and flexible relationships with one another, convinces me that there's more to e-business than the usual hype and hysterics. Highly recommended.

I'll admit it: I read a lot of business books, Internet and otherwise, and most of them either bore me to tears or confuse the hell out of me. This one is that rare exception that makes an interesting argument in a clear and straightforward style. The big benefit of e-business is the ability to connect almost instantly with your customers, suppliers, distributors, and even your competition. This book tells you how to do that by building a "business web" to maximize your interactions with these constituents. The traditional integrated firm may not be dead quite yet, but it's certainly headed that way, and we're all going to have to figure out a new way to do business. These authors provide balanced and intelligent guidance.

I rated this book 5 stars for these reasons: 1)Excellent book for startups - it will not tell you how to do it but will certainly tell you where you are in the big complex b-web called the new economy - great for start ups who are always struggling with their business models 2)Was thinking of doing an MBA to understand business models but decided not to do it till I chew and digest this book completely - the 'old business models' may have to be thrown away 3)Helped me tremendously in changing my current mindset - that mind that was shaped under the old 'brick and mortar', linear model way of thinking.

"Digital Capital; Harnessing the Power of Business Webs" effectively defines, describes and validates e-commerce strategy through the use of business webs. Before even cracking this book, I had worked for a leading e-commerce company for almost four years and was just shy of completing an e-commerce course in an MBA program. I was pleasantly surprised to gain as much as I did from reading this book. The authors make excellent use of various business models and case studies to illustrate the value added of an interactive business web economy. I recommend this book to anyone who is involved in e-commerce or would like to learn more about why this emerging structure is so coveted. In the past, I have been left almost angry after spending hours of my valuable time reading a book that claims to deliver wisdom regarding e-commerce strategy. This is the reason behind my subject line in which I state that the book is humbly titled. The book efficiently describes this era of change and its effect on various industries including the automotive and computer industries. Judging on the merit of the book alone, the authors either have first hand knowledge or have done extensive research before writing this book. It is well organized, elaborate and complete. You will learn from this book.

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'.....