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Let Go To Grow: Escaping the Commodity Trap (Hardcover)

~ (Author), (Author) "Deregulation, globalization, and the Internet are fueling the growth of commoditization in just about every industry..." (more)
Key Phrases: cost optionality, commoditization cycle, value web relationships, United States, First Data, Cemex Way (more...)
4.6 out of 5 stars  See all reviews (9 customer reviews)

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Editorial Reviews

Product Description

This is a business book that shows the reader how to look at their businessissues and gain an advantage over their competitors by embracing IBM's OnDemand strategy. On Demand is really just a new way of looking at what ishappening in today's markets due to computer technology and fasterinformation delivery. Companies are leaping over competition by embracingthe technology changes and dealing with their customers and suppliers not in alinear fashion but as a "value space". It is no longer a supply chain. Chainimplies linearity. Instaneous need fulfillment is the answer. Those supplierswho can deliver will gain share and this book talks about the internal personnelissues, management issues and business culture issues necessary to make ithappen.On Demand is now gaining strength and acceptance in the market. You can seeit in the amazing push to grid computing that we are seeing now, theoutsourcing phenomenon, and other issues. It is IBM's theme for theforeseeable future.


From the Back Cover

Praise for Let Go To Grow

"Over the next ten years large companies will be hit with a wide array of harrowing new business challenges—commoditization being at the top of that list.

Let Go To Grow elegantly outlines the critical new innovation, standardization, and globalization strategies that corporations can use to hurdle these obstacles and thrive in the coming years."

—George F. Colony, CEO, Forrester Research, Inc.

"This is a very important book for CEOs and top executives who are facing brutal, global competitive pressures, which is probably a majority. Let Go To Grow describes a strategy that will allow you as a business leader to do what you do best, while sidestepping the commoditization that's driving down profit margins in so many businesses. This book reflects not only what IBM is thinking, but also what other companies ranging from Dell to FedEx to Wal-Mart are doing to win in extremely competitive markets. Read this book for practical real-world insights, not for any academic theories."

—William J. Holstein, Editor-in-Chief, Chief Executive magazine

"Let Go To Grow is a must-read for executives who are trying to use strategy and management practices to drive innovation and productivity gains. It puts concepts like componentization, outsourcing, and off-shoring in a much more strategic context than anything else I've read. The book clearly shows how winning companies have gone from optimizing value chains to managing global "value webs" for competitive advantage. The argument is enhanced significantly by specific practical case examples featuring leading companies like Dell, eBay, GE, Procter & Gamble, and Toyota."

—Tony Friscia, President and CEO, AMR Research

"Sanford and Taylor carefully analyze the global marketplace and offer a progressive new strategy for transforming an underperforming business...A pioneering blueprint for the 21st-century business."

—Kirkus Reports

Drive sustained growth!

—Use on demand techniques to gain unprecedented speed, flexibility, and adaptability

—Construct dynamic "value webs" that leverage innovation from any source

Deregulation, globalization, and the Internet are driving rampant commoditization in virtually every industry. To escape that trap and grow profitably, you must "let go" of traditional control mechanisms. In their place, you must build new models, relationships, and platforms that capture and deliver value from multiple sources, inside and outside the enterprise.

In Let Go To Grow, IBM senior executive Linda Sanford and long-time entrepreneur Dave Taylor show exactly how to do that.

Sanford and Taylor systematically review the On Demand Business processes, people strategies, technology shifts, governance practices, and leadership vision you'll need to maximize profitability in tomorrow's business environment. They introduce powerful new techniques for balancing and measuring three key drivers of top-line growth: productivity, collaboration, and innovation.

You'll discover how to gain unprecedented flexibility by constructing your business around components, platforms, and standardized interfaces. The authors demonstrate how to expand your growth space, liberate your cost structures, and build profits—not just revenues. Drawing on the experiences of companies ranging from GE to eBay, Toyota to IBM, this book focuses on practical implementation, offering a proven, start-to-finish approach for moving from vision to results.

  • Create a virtuous cycle of growth.
    Discover how great companies are escaping commoditization and the vagaries of economic cycles.

  • Improve, balance, and measure the key drivers of top-line growth.
    Use on demand techniques to supercharge productivity, collaboration, and innovation.

  • Drive unprecedented agility with proven on demand strategies.
    "Open up" your firm: source and coordinate capabilities dynamically, on-the-fly.

  • Build flexible "value webs" that liberate your cost structures.
    Master powerful new ways to refocus precious resources on growth.

  • "Componentize" your business functions, processes, and services.
    Simplify the creation of any new business configuration, from supply chain management to customer service.


© Copyright Pearson Education. All rights reserved.


Product Details

  • Hardcover: 224 pages
  • Publisher: Prentice Hall PTR; 1 edition (December 22, 2005)
  • Language: English
  • ISBN-10: 0131482084
  • ISBN-13: 978-0131482081
  • Product Dimensions: 9.1 x 5.8 x 1.1 inches
  • Shipping Weight: 15.2 ounces (View shipping rates and policies)
  • Average Customer Review: 4.6 out of 5 stars  See all reviews (9 customer reviews)
  • Amazon.com Sales Rank: #818,383 in Books (See Bestsellers in Books)

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Let Go To Grow: Escaping the Commodity Trap
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Let Go To Grow: Escaping the Commodity Trap 4.6 out of 5 stars (9)
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Irresistible! Markets, Models, and Meta-Value in Consumer Electronics 4.6 out of 5 stars (5)
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Customer Reviews

9 Reviews
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Average Customer Review
4.6 out of 5 stars (9 customer reviews)
 
 
 
 
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4 of 4 people found the following review helpful:
5.0 out of 5 stars The tighter you hold on, the more it all slips away..., December 6, 2005
By Thomas Duff "Duffbert" (Portland, OR United States) - See all my reviews
(TOP 50 REVIEWER)    (REAL NAME)      
So what do you do when your main business offering is in danger of becoming a commodity item? Do you desperately cling to ever-shrinking profit margins in hopes of a turnaround, or do you take a radically different approach and open things up? Those questions and answers are discussed in a new book called Let Go To Grow - Escaping The Commodity Trap by Linda S. Sanford and Dave Taylor. Lots of food for thought here...

Contents: Grow To Build Profits, Not Just Revenue; Commodity Markets Defined; It's All About Components; Creating Business Components; Integrate Your Business Components End-To-End; Expand Your Growth Space; Liberate Your Cost Structures; From Vision To Results - The Leadership Agenda; Achieving Measurable Productivity Improvements; Practical Implementation Of The Component Business Model; Gaining The Collaborative Edge - Building The Creative Company For The Creative Economy; Endnotes; Index

With the globalization of today's business environment, it's a strong likelihood that your business offerings over time will drift (or run) to becoming a commodity. The margins will shrink along with your rate of growth. It's at that point that companies either flourish or stagnate. Sanford and Taylor make the case that by opening up your business to the use of components, as well as allowing your business to become a component in the business of others, you can create a value web that causes you and others to build whole new businesses in unique ways that were not part of the "original" plan created by holding on tight. They use examples like Li & Fung, a player in the apparel industry who can do everything from design to delivery. As a result, companies like J. C. Penny can partner with them and dramatically improve turnover, delivery, and inventory levels, all at lower cost. That allows J. C. Penny to concentrate on retailing. Another example is UPS. Rather than looking at themselves as just a commodity player in the package delivery space, they turned their business into components that other businesses could plug into. Because of that, UPS becomes a critical partner for many companies looking to better manage logistics, inventory, repair, etc. It's this "letting go to grow" which is the theme of the book, and it certainly makes a lot of sense when you step back and look at where things are going.

Even though you may *think* your business isn't a target of commoditization, I'd be willing to bet you're not looking hard enough. Business executives owe it to themselves to read through this book and think about some restructuring that may be necessary to survive in the next few years...
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4.0 out of 5 stars Business platforms, January 7, 2009
The authors clearly articulate the problem, but their solution is less plausible. Having each enterprise develop its own platform is not practical, does not work and cannot scale beyond tier one partners.
Nonetheless it is an excellent examination of the CEO's dilemma "how do I optimise the enterprise's efficiency while maximising the enterprise's flexibility in the market place.
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4.0 out of 5 stars Another Worthwhile Growth Data Point, July 22, 2008
By Aaauger (Austin, TX United States) - See all my reviews
There are far too few books on growing (as opposed to starting) a business. And this book is a slow read. Like another reviewer mentioned, it is somewhat repetitive, maybe a little disorganized. Business people like to read and apply quickly. But the book provokes the business thought process which is always good.

The gist is that businesses are all interlocking. Your business receives and gives value. So far, so good. However, the reason that many businesses choose to do many things in-house is because there's a major trade-off: risk for profit.

Ex. We're a small B2B, communicating mostly online. We outsourced our phones to an answering service. It was a disaster. Dropped calls, long wait times, rudeness, garbled messages, rising prices, etc. And this was an agency approved by the related association.

Maybe a larger organization has enough resources(people, money, attorneys, etc.) to control an outsourced relationship. But this approach isn't for all businesses. And the book doesn't really address how to manage an outsourced relationships. Maybe that's the sequel.

Small businesses might get more value out of the sections that refer to providing value to others.

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Most Recent Customer Reviews

5.0 out of 5 stars Let Go to Grow
The author focuses on the difficulty that groups have accepting change. Her premise that letting go of old ways is a requirement for accepting new ways is spot on. Read more
Published on February 8, 2007 by Dale D. Mcclinton

3.0 out of 5 stars Some interesting ideas, but too repetitive
This book contains certainly some interesting ideas, provides nice examples of business that are transforming and offers some interesting facts (like the fact that employment in... Read more
Published on July 16, 2006 by A reader

5.0 out of 5 stars An outstanding book for leaders
This business book shows the reader how to look at their business issues and gain an advantage over their competitors by embracing IBM's On Demand strategy. Read more
Published on March 10, 2006 by Guillaume Lamouche

5.0 out of 5 stars Let Go To Grow, A Timely Handbook
My business was at a crossroads and this was very timely. I used it for strategic planning purposes and have actually begun to retool my business with the insights it provided... Read more
Published on March 3, 2006 by James R. Lewis

5.0 out of 5 stars Great recipe for growth for the 21st century organization
Disclaimer: I also work for IBM, where the author works. Nevertheless, this book is a great recipe for any 21st century organization, ... Read more
Published on February 1, 2006 by A. Maheshwari

5.0 out of 5 stars Outstanding!
First of all, a disclaimer - I know Linda Sanford and have worked with her at IBM for over 20 years, and I confess that I am a huge fan, so perhaps not entirely objective! Read more
Published on December 21, 2005 by C. Kovac

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