Free Ebook Consumption Economics: The New Rules of Tech, by J.B. Wood, Todd Hewlin, Thomas Lah
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Consumption Economics: The New Rules of Tech, by J.B. Wood, Todd Hewlin, Thomas Lah
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If you’re a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won’t be felt in your company’s product line. The true disruption will be to your business model. Future customers won’t want to pay you high prices out of big “CapEx” budgets anymore. They will expect lower “cloud” prices paid from “OpEx” budgets only when and if they successfully consume the business value of your products.How your company reacts to this risk shift could either accelerate the commoditization of your products or lead you to a new stage of profitable growth. For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the owner’s manual for tech company executives who want to drive their company successfully into the next one.
- Sales Rank: #147352 in Books
- Brand: J B Wood
- Published on: 2011-11-01
- Original language: English
- Number of items: 1
- Dimensions: 9.25" h x .75" w x 6.38" l, 1.13 pounds
- Binding: Hardcover
- 232 pages
- Consumption Economics The New Rules of Tech
About the Author
J.B. Wood is president and CEO of the Technology Services Industry Association (TSIA). He is a frequent industry speaker and author of the popular book Complexity Avalanche (2009), and has appeared in Fortune, the New York Times, the Wall Street Journal, and other leading publications. He was formerly the CEO of Prognostics and executive vice president of InsightExpress. Todd Hewlin is managing director of TCG Advisors, a Silicon Valley consulting firm. Previously a partner at McKinsey and a senior executive at Symbol Technologies, he is regularly found in the boardroom of public and private technology leaders advising them on growth strategy and business transformation. His articles have been published in the Harvard Business Review and McKinsey Quarterly. Thomas Lah is executive director of the Technology Services Industry Association (TSIA). Since 1996, he has helped a broad range of companies establish or improve their professional services organizations and is known worldwide for his incisive analysis, strategic thinking, and creative solutions.
Most helpful customer reviews
5 of 5 people found the following review helpful.
Maybe not a literary masterpiece, but still worthwhile reading.
By Hans Peter Bech
As part of the research for my next book “Building Successful Partner Channels” I came across the book “Consumption Economics.” Although the book is not a literary masterpiece (is far too long with far too many repetitions and with illustrations that are confusing rather than illustrative (and unreadable in the Kindle version)) it is still worthwhile reading for its’ thorough analysis of the impact of the “________ as as service” format on an industry that have been dominated by the capital investment format. The software industry that has been blessed by the “pay first - consume later” principle is now transforming to a “pay as you consume” format and the “Consumption Economics” book is worth reading if you are affected by these changes.
The transformation is driven by numerous interests and factors such as fast and inexpensive access to the Internet, the customers’ appreciation of the “pay as we consume” format, the end-users’ option of circumnavigating the CIO and his IT department for new applications, the opportunity of insurgents to disrupt established markets (salesforce.com, Netsuite, Workday, Basecamp, Atlassian, Zendesk, Dropbox, Skype etc.), the reduction in complexity for the user and the enormous economy of scale benefits of using large data centres. With so many drivers and benefits the challenges associated with integration, customisation, privacy, security, availability, survivability and performance will be solved enabling the “________ as as service” format to also deep-penetrate the enterprise markets. Wood, Hewlin & Lah predicts that the transformation will take place in most segments of the market within the next 5-10 years leaving only very small pockets resistant to the consumption format.
While the book is very thorough analysing the challenges and opportunities for the software and technology vendors it doesn’t say much about the challenges for the independent channel partners. I have devoted a chapter in my new book to discuss exactly this issue because I believe that independent channel partners may continue to play a crucial role in the software industry serving customers with vertical and horizontal extensions to the core software and providing numerous auxiliary services ensuring that the software actually delivers the value expected.
5 of 5 people found the following review helpful.
Weak on solutions
By Ujjwal
I was impressed by the start - where a problem already felt - was so clearly defined. This got my hopes up about the solution it would offer, but there found the book to be tentative, speculative and unconvincing. And finally, the 'solutions' it offered seemed only temporary. What about the time when everyone in the playing field applies these 'solutions'? Could that save our offerings from becoming 'commodities'?
The good part is the framework and jargon it provide to discuss the problem. But be ready to BYOS (bring your own solution :-))
0 of 0 people found the following review helpful.
Read this or be lost, but: "Buckle up 'cuz you're in for a heck of a ride!"
By Kalman
The world has changed considerably since the turn of the century and it's not just 9/11, the Great Recession, and broken government. The purchasing model for a variety of products has also changed, and this is driving radical changes in modern business culture: the cloud is an entirely new service delivery and consumption model for many business processes, the infrastructure support team of the enterprise--what's left of it--will see a huge change, the sales teams supporting customers will also witness a sea change in the products they sell, how the products are delivered, and support models for those products. This book is your guide to a Challenging New World; ignore it at your own peril.
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