Book Review/The Long Tail

A Must-read Guide to the Importance of Web 2.0 and the Knowledge Economy

longtail-cover-smThe Long Tail is a watershed book that reflects many of the profound socioeconomic changes wrought by the transition from the Industrial Economy to the Knowledge Economy. The “Long Tail” represents the splintering of the mass market—what is happening, why and how you can thrive in the new era of the niche. Moreover, it shows how the mass market was a temporary phenomenon that developed because niches were not economically viable for producers to address.

Chris Anderson is editor-in-chief of Wired, and the book has an appreciation for culture, the economics of technology and the importance of innovation. It’s also very well written: Anderson tackles some fairly abstract concepts, but the reader doesn’t trip over them. It’s possible to read the book quickly, but there is plenty of substance for a detailed, reflective reading as well. Difficult to over-recommend!

The Long Tail offers an insightful look into the byte-oriented Knowledge Economy and its movement away from the zero-sum, bits-oriented Industrial Economy—and what this holds for business and culture. The book […]

Innovation Lab: Should Apple Jump into the Mobile Phone Fray?

Mobile Phones a Plum Market for Apple—If It Changes the Rules

aplph-06As mobile phones and smartphones become increasingly commonplace in mature and emerging markets, pundits increasingly predict that Apple will apply its design and experience expertise to field a mobile phone. Renowned for the elegance and simplicity of its devices and services, Apple provides unparalleled experience through world-class design of hardware, software and services. It delights and inspires customers by making the complex simple and beautiful.

The market for computing devices, wireless access and information (content) is at the point of convergence, and its value chain players—access providers, device makers and information providers—are vying to grow their influence. The digital device is rapidly becoming the hub for an unlimited number of information services. For many people, it is the main access device to the Internet, more than a computer. Within the market for devices, smartphones represent the convergence of PDAs and phones.

But the market for “music phones” is crippled by intractable value chain conflict. Can Apple use its core competency to create sustainable competitive advantage by changing the rules?

Are Rumors Grounded in a Solid Business Case?

The never-ending […]

Technology Outlook for 2007 - Chicago as a Leading Technology Center

High Potential for Business Innovation

tech_chicagoPlus ça change* was the theme of The Executives’ Club of Chicago High Technology Conference December eighth, where an esteemed panel gave varying perspectives on Chicago’s importance as a technology center. William Avery of Brunswick Corporation, James O’Connor, Jr. of Motorola, Inc. and Ira H. Cohen of Goldman, Sachs & Co. spoke about technology from enterprise IT, mobile technology and investment points of view respectively. Prior to their prepared remarks, John Gentry of CSC Consulting outlined key results of the forthcoming Chicago Technology Outlook Survey, in which corporate technology leaders commented on IT trends for 2007 as well as Chicago’s role as a technology center. He moderated the panel during a Q&A session.

The net-net: Chicago has a way to go before it becomes a preeminent technology center; however, its best chance for creating breakaway value through innovation will lie in not focusing on technology, as explained in Analysis and Conclusions.

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Consumer Empowerment and Disruption

Consumer empowerment and disruption are being unleashed by the many-to-many Web. As we’ve been writing for some time, Web 2.0 is giving individuals collective voices that can rival the authority of global enterprises and governments, which is disruptive because it changes the rules. We call it Consumer Empowerment. Blogs, social networking, podcasts, wikis, vlogs and their intermediaries like Technorati, MySpace and iTunes give customers the tools to create and distribute content for free—instantly and globally. When rules change, you can quickly strengthen your market position by understanding and adapting more quickly than competitors.

Google any specific product, phrase or service, and you will notice that customer content is growing quickly, especially in specific, customer-centric areas that organizations aren’t focused on. Customers contribute customer-relevant content because they are passionate about the subject. Growing “tribes” of individuals connect, collaborate, and become smart very quickly. Threat: large organizations are losing control over the information about their reputations, products and services. Opportunity: adding value to these customer-led conversations can increase your credibility and appeal.

Large organizations attained their market power through efficiency, the hallmark of the […]