Value Migration: How to Think Several Moves Ahead of the Competition (Hardcover)

by Adrian J. Slywotzky (Author) "FROM 1984 TO 1994, IBM and DEC lost $55 billion in market value, while Microsoft, Intel, EDS, and Novell were gaining $80 billion..." (more)
Key Phrases: defeat institutional memory, new business designs, innovative business designs, United States, People Express, Value Growth Database (more...)

Editorial Reviews

Product Description
This book identifies for the first time a dramatic shift in the business landscape in which new, aggressive companies have taken on the giants--not with new products or innovative technology, but with superior business designs.

About the Author
Adrian J. Slywotzky is a Vice President and founding partner of Corporate Decisions, Inc. (CDI), an international strategy consulting firm that focuses on the creation of profitable growth for clients.

Product Details

• Hardcover: 326 pages
• Publisher: Harvard Business School Press (January 1996)
• Language: English
• ISBN-10: 0875846327
• ISBN-13: 978-0875846323
• Product Dimensions: 9.1 x 6.1 x 1.4 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars See all reviews (11 customer reviews)
• Amazon.com Sales Rank: #117,885 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

16 of 17 people found the following review helpful:

5.0 out of 5 stars A whole new way of thinking for me, August 15, 2001

By	Linda Zarate "IT Ops Consultant" (Azusa, CA United States) - See all my reviews (TOP 500 REVIEWER)

I normally do not read business books of this book's scope; however, it was recommended by my co-author for an article on which we were collaborating. Our challenge was to support the assertion that the U.S. software industry is being supplanted by India, and a shift in off-shore development resources from the U.S. consumer to Indian provider is actually moving to Indian consumer to Russian and Egyptian providers. This is obviously value migration in its truest form and is consistent with the ideas set forth by Mr. Slywotzky in this book.

Using the inflow-stability-outflow model that is one of the basic paradigms in this book, we developed a model upon which we were able to build a case supporting our assertion. More interestingly, the whole concept and numerous case studies that reinforce it throughout the book provided me with a deeper understanding of the macro and micro issues of value migration - this was eye-opening.

My favorite chapter is at the very end of the book. Titled, "Five Moves ... or Fewer," it showed how major companies captured or recaptured the biggest share of value available, and each of the examples involved five or less moves. I was personally fascinated.

Although my initial reason for reading this book was to research an article, it has changed my way of thinking on a number of levels that go well beyond a single-topic research project. The writing style is clear and engaging, and the concepts and ideas ring true. I am giving this remarkable book 5 stars and highly recommend it to anyone who wants to see a bigger picture of economics or develop a keen business strategy.

12 of 14 people found the following review helpful:

5.0 out of 5 stars Mastering an "Acquired Skill", June 4, 2001

By	Robert Morris (Dallas, Texas) - See all my reviews (TOP 50 REVIEWER)    (REAL NAME)

According to Slywotsky, there are three phases of what he calls "value migration": In "inflow," the initial phase, a company starts to absorb value from other parts of its industry because its business design proves superior in satisfying customers' priorities; the second phase, "stability," is characterized by business designs that are well matched to customer priorities and by overall competitive equilibrium; in "outflow," the third phase, value starts to move away from an organization's traditional activities toward business designs that more effectively meet evolving customer priorities. Slywotsky explains that Part I of this book describes the basic rules of Value Migration" and the workings of what he refers to as "the new game of business." As when playing chess, winning at this game requires an understanding of the individual pieces (i.e. when to deploy them and how to capture them). One must master basic moves and simple techniques such as openings, traps to avoid, end-game moves, etc. It is also important to understand the the importance of controlling (as in chess) "the four central ones." In business as in chess, one must become familiar with certain "basic patterns" which will ultimately determine success or failure. These "patterns" are examined in Part II. There are seven: Multidirectional Migration (from steel to materials), Migration to a Non-Profit Industry (airlines), Blockbuster Migration (pharmaceuticals), Multicategory Migration (coffee), From Integration to Specialization (computing), From Conventional Selling to Low-Cost Distribution, ands finally, From Conventional Selling to High-End Solutions. Slywotsky shifts his attention in Part III to explaining how to play the Value Migration "game" well on a day-to-day basis. He identifies certain specific initiatives to take which help to (a) avoid value loss and (b) preempt the next cycle of value growth. "The final chapter of the book focuses on the increasingly high-stakes nature of the decisions that determine future value growth."

There are more than a dozen charts which effectively illustrate Slywotsky's key points. For example, Figure 15-1 presents "The Grand Masters of Value Growth" and identifies them, their key moves, and the value each created (in terms of billions of dollars) from 1980 until 1994. All of these visionary leaders (Welch, Walton, Vagelos, Gates, Petersen, Grove, Malone, Platt, Noorda, Iverson, and Kelleher) focused on making the right moves and thereby created enormous value for their respective companies. "Business chess is a game that is as demanding as [football and basketball], but in very different ways. It is not physical stamina, but stamina of thought. It is not transactional concentration, but constant shuttling between a focus on the current move and imagining the next several moves out. It is an unrelenting exercise of matching patterns on the current game board to the countless patterns in your mind." Slywotsky concludes the final chapter with a suggestion that this question be asked: What five moves will capture most of the given industry's value growth? "Give yourself a couple of months to analyze and assimilate the grand masters' key moves. Then come back and determine the five (or fewer) critical moves for your company." In this exceptionally thought-provoking book, Slywotsky indicates why he would be an indispensable guide throughout that difficult but necessary process.

13 of 16 people found the following review helpful:

3.0 out of 5 stars Right idea - tedious execution, February 20, 1999

By	David Arelette (Yarrambat, Victoria Australia) - See all my reviews (REAL NAME)

The core idea of this book is correct - moving to ways that create superior value for customers will create a superior position for your firm.

However, you could distill the message into half the pages and save a lot of time.

Worth reading - but borrow a copy.