Customer Reviews

The Digital Economy: Promise and Peril In The Age of Networked Intelligence

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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.

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.

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.

Though it has been written few years ago, that is a standard example of a book who has become obsolete yet at its publication. It could be useful for those people, professionals and consultants, who need to develop a common "management" language, in order to use it in meeting and convention. In other words, it could be useful to Dilbert's boss or CEO. To other people, now it could have mainly a historical interest.

Really nothing more than some rather sophmoric musings about how the digital age will revolutionize life as we know it. Tapscott uses his 10-year old daughter's thoughts as his primary source for inspiration.

Unfortunately, if you're at all involved in the Net field, you're not going to find anything Tapscott says interesting nor revolutionary.

Don Tapscott provides an overview of the way the digitalization of information is transforming the economy and projects the likely changes ahead from his perspective in 1996. The book suggests ways to exercise leadership effectively in this transformed, networked world. However, since this thoughtful, well-organized book was written several years ago, it is mainly of historical interest now, because of the rapid changes in the digital world. Still, it is useful to apply some of the themes Tapscott developed when you consider how the digital economy is continuing to evolve. ...recommend this well-written book for a general audience as well as executives and managers who are interested in the unfolding of the new economy.

This was probably an interesting book when it was published, a generation ago, in 1995. Since then, so much has changed, that Tapscott's theses are either proven or forgotten. Sure, some of them still have a chance of happening, and some of his observations about business in general are interesting and valid, but too much has changed since then. If he wrote the book today, I'm sure he would approach vastly different subjects.

There is a gee-whiz character in the book that is a bit irksome. In some parts, it reads like Popular Science in the 1930s - this awe of new technologies, many of which never made it past the drawing board, that propels him into elegies of modernism (like the high-school kid with his own home page - back then that might have been revolutionary...).

One thing bothers me a bit: there is a constant, yet subtle, advertising for his consulting company and workshops running through the book. It almost seems that the book is an ad for the higher-cost training sessions that he runs. All the diagrams and tables are copyright New Paradigm Learning Corporation, whereas, technically, you don't copyright data in this manner. This makes me uncomfortable, and it looks like the author is just trying to constantly remind you that his makes his real money elsewhere.

This is one of the books that I keep with me as a continual source of inspiration. Although some criticize it as now being somewhat dated, I do not see that as a valid objection. After all, Mr Tapscott set out to predict the near future, and many of the things he has predicted has come true - in spades! These valid predictions merely add credence to the power of his other yet-to-be-fulfilled predictions, many of which one can see being realised as we speak. Of course a book like this will be soon dated - it goes with the territory.

The value in this book is in its radicalism, in its shattering trumpet sounds that anticipate the crumbling of the Jericho-like walls of status quo business practices. It is an inspiration to those of us who believe, and are acting upon the belief, that the digital economy undermines everything - some for the better, some for the worse. But either way, it is best to get your head out of the sand and to get prepared. Standing still is not an option. Thanks, Don, for a GREAT book that will soon be widely regarded as a classic.

I have some agreement with the text of the book, and I found his model of integration to be illuminating. I also appreciated the examples of how businesses were applying the integration of technology to their businesses. I would have liked a more focused review of the salient issues. Of course, that would have been difficult in 1995, as in 1999, because the segments of ecommerce are still emerging and the technology is still developing. (as in the case of Java)

I rushed out get this book after reading 'Being Digital' by Negroponte. Digital Economy makes references to Negroponte. And it quickly became clear who had the original ideas. Negroponte made me think out of the box about the digital world. Digital Economy is all inside the box. And if you're aware of the state of the art , this is boring.