The Digital Economy: Promise and Peril in the Age of Networked Intelligence [Hardcover]

Don Tapscott (Author)

Book Description

Publication Date: October 1, 1995

Arguing that knowledge is power and prolonged economic advantage accrues to those individuals and organizations who are able to leverage the capabilities of new information technologies, this study summarizes how new technology is transforming the ways individuals work, learn and do business. It presents a model of how to create wealth in the new economy along with examples from leading companies from over the world.

Editorial Reviews

From Publishers Weekly

A smart survival manual for companies marketing online services and products via the Internet and its World Wide Web, this entry in a crowded field is distinguished by a minimum of hype and a recognition that the global, interactive marketplace is a new business environment where old rules don't necessarily apply. As well as for its vignettes distilling the Net experiences of large, established corporations, Martin's book is particularly useful for its profiles of dozens of companies?from Silicon Valley entrepreneurs to Silicon Alley start-ups in Manhattan's Soho district?that make up what he calls the digital estate, i.e., firms that conduct business via the Internet exclusively. From these digital pioneers he gleans lessons about customizing advertising messages, encouraging interactive customer participation, making continual market feedback integral to product development and even collaborating with competitors. His "100 Rules of Business Netiquette" for e-mail and Web users set a standard for civil conduct in cyberspace. Martin, an IBM vice-president, is founding publisher of Interactive Age.
Copyright 1996 Reed Business Information, Inc.

From Library Journal

With forecasters predicting as many as one billion Internet users by the year 2000, Martin, the founding publisher of Interactive Age and vice president of publishing and advertising, media, and entertainment at IBM, has written a marketing guide for businesses seriously considering a move onto the information highway. Martin defines the digital estate as those individuals and companies currently conducting business on the Internet. He sees this new information medium as creating a paradigm shift in traditional marketing and business planning. This new model is more akin to an "on the fly" approach whereby businesses, in an effort to save time, float their new products and services on the Internet and allow consumers to provide feedback. Martin offers examples of how digital money is slowly becoming a reality and devotes a chapter to business "netiquette," which will be of interest to net entrepreneurs. Well written without much Internet jargon, Martin's book is targeted to individuals and businesses that are serious in becoming a part of the digital estate. Recommended for public and academic library business collections.?Dennis Krieb, St. Charles Cty. Community Coll., St. Peters, Mo.
Copyright 1996 Reed Business Information, Inc.

See all Editorial Reviews

Product Details

• Hardcover: 368 pages
• Publisher: McGraw-Hill; 1st edition (October 1, 1995)
• Language: English
• ISBN-10: 0070622000
• ISBN-13: 978-0070622005
• Product Dimensions: 9 x 5.9 x 1.2 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 3.9 out of 5 stars  See all reviews (32 customer reviews)
• Amazon Best Sellers Rank: #2,025,061 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

15 of 16 people found the following review helpful:

5.0 out of 5 stars Insightful book about the digital revolution., February 18, 1999

By A Customer

This review is from: The Digital Economy: Promise and Peril In The Age of Networked Intelligence (Paperback)

I have never considered myself an information "technocrat", but I realize that technology, or more accurately, the effective use of technology is critical to success in business. Books written on technology usually intimidate me with technical details that might as well be written in a foreign language. So, when Don Tapscott's book, The Digital Economy, was recommended to me, I purchased the book thinking it would not hold my interest for more than two chapters. Instead, I was pleasantly surprised by a book that grabbed my attention and would not let go. With a balance of case studies, statistical information, and his own model of the new digital economy, Mr. Tapscott wrote a book that describes the opportunities and pitfalls of the new networked economy. For business leaders grappling with the globally networked economy, this book helps put it all in perspective.

As a sequel to his earlier bestseller, Paradigm Shift, Mr. Tapscott takes a strategic look at the technological advances society is making, focusing on how they change the way we interact, communicate, conduct business transactions, learn and play. Mr. Tapscott explains that we are on the brink of a revolution as networked intelligence, coupled with human intelligence, create new economic and societal possibilities. Like the agricultural and industrial age before it, the digital revolution will change the rules of business and the structures that support human interactions. Speed of innovation and flexibility on a grand scale will become critical to success in a digital economy. Product life cycles will be measured in weeks or days, and disintermediation will be a continuing trend that could lead to systemic unemployment. Through this revolutionary period, there will be a blurring of the line between producers and consumers. Tapscott coins the term "prosumers" to describe how we will interact with technology.

With the requirements for success changing, the current best business practices such as Total Quality Management (TQM) and Business Process Reengineering (BPR) will not be enough to ensure survival in the future. Theses efforts focus on improving current business processes rather than inventing new processes, markets, and products. Tapscott urges his readers to focus on ways to add value in a new and rapidly changing economy. Because the digital economy makes information inexpensive, Tapscott speaks of the movement from an economy based on mass production to an economy based on mass customization. Already, Levi's will "build" you a customized pair of jeans. Those who success in this new digital economy must be willing to challenge their own thinking, make their own products obsolete, and continuously look for ways to add value to those they serve.

Mr. Tapscott took great care to provide a balanced view of the networked revolution. As digital interchange allows people separated by great distances to share creative ideas, it also increases the risk of individuals becoming isolated. At the same time, we risk losing our privacy as personal information can be extracted from multiple sources. Tapscott speaks of the swift punishment corporations and individuals who do not "keep up with technology" can expect and of the societal risk we all encounter when we consider the possibility of a bipolar society based on technology "haves" and "have nots". Reminding us of our responsibility to each other and to society as a whole, Tapscott challenges us to make the most of the possibilities while remaining cognizant of all the risks.

5 of 5 people found the following review helpful:

2.0 out of 5 stars Almost unreadable...a quaint artifact from an earlier time, September 15, 2003

By 

Derrick Peterman (San Jose, CA United States) - See all my reviews
(REAL NAME)   

This review is from: The Digital Economy: Promise and Peril In The Age of Networked Intelligence (Paperback)

There were many annoying things about this book. Perhaps most annoying is that he never really talks about economies, and just blathers about gee-whiz technology in a rapid fire manner. He doesn't really penetrate much into the technology, nor bothers to say how it is really going to affect economies. The book is full of pre-9/11, pre-internet bubble euphoria, and never spends any time fully exploring its interesting premise.

Certain the internet and communication technologies will effect the economy, and anyone trying to get any real insight here, beyond that it will make the world a better place and lots of people are going to make more money (stated over and over again), will be greatly let down.

The effects of technology on economies is better described elsewhere, such as "The Innovator's Dilemma" and other books that understand both economics and the relevant technology, something a "visionary" such as Tapscott has no time for.

Beyond providing insight into internet/technology mania of the mid to late 90's, I see no reason to invest time to read this book.

5 of 5 people found the following review helpful:

2.0 out of 5 stars Decent, April 19, 1998

By 

[e-mail] (Durham, North Carolina) - See all my reviews

This review is from: The Digital Economy: Promise and Peril In The Age of Networked Intelligence (Paperback)

Reading the first third of Don Tapscott's book "The Digital Economy" provides a good overview of the evolving computer revolution. However, the last two-thirds is basically a reiteration of the beginning of the book, with a never ending list of examples. Although through these example Tapscott illustrates his point that the economy will be forever changed by digital technology,he never goes below the surface to expand his argument. If you have no idea about the potential of computers, this book could be of some use. But, if you already have a fair understanding, you're best off reading a book that provides reasons and explanations instead of just examples.