How Digital Is Your Business?

Rating:
Summary: Champions for Customers
Review: If there is a Customer Advocate Hall of Fame, I'd like to nominate the authors of this book for membership. Finally, someone is championing the cause of using technology only when it means a customer will have a better experience as a result.

Slywotzky and Morrison focus on planning how best to use technology, citing examples from some of the business world's most successfully digital companies, such as Charles Schwab and Cisco Systems. They demonstrate how technology decisions should be made based on the value they add to the customer experience, and also show the outstanding results this mindset brings.

The authors are realistic. They concede that not all functions can or should go digital, and they see a role for a hybrid business model that retains "bricks and mortar," where it makes sense. Slywotzky and Morrison warn that "going digital" takes time and requires a complete change of thinking for employees.

The ideas in this book are very practical. Even though the examples focus on large enterprises, the same issues face a small business and the same solutions can be applied. Just because your shop is on Main Street doesn't mean you can't use technology to advantage. What every business has in common is customers, and these business experts offer excellent ideas for using the tools of modern life to create long-lasting relationships that will grow your business.

Rating:
Summary: IN ANY GOLDRUSH ...HAVE A GOOD LIE DOWN FIRST
Review: In any gold rush, only the shovel makers end up rich. Slywotzky is no shovel maker.

I do not want to be too negative, but all his books are the same formula - one brilliant idea that comes out in the initial 40 pages then another 300 to justify the cost. Sounds like mots consultants' reports.

I would suggest that you get someone to copy pages 1 to 40 for you before you decide to buy this book, then have a good lie down before proceeding. The focus on the customer is encouraging but totally impractical in implementation.

If you buy it, be ready to start hearing the same themes over and over again.

Rating:
Summary: A Feast of Vision and Wisdom, Not Just Strategy!
Review: Slywotsky and Morrison are among a small handful of management consultants who have proven to be consistently ahead of the curve, inventive and accessible in their thinking. On all three counts, this is their best book yet. They paint a clear and compelling picture of a world which challenges much of the current decidedly narrow, rigid bricks and mortar vs. dot-com conventional wisdom. Executives now working across this spectrum will find many new ideas and insights hre. I found the the best parts of this book in the back. Chapter 15, for example, offers a preliminary but provocative sketch of some qualities and characteristics that are distinct to a digital organization. And the epilogue touches on the notion that "being unique" will increasingly differentiate businesses in ways we have only just begun to imagine. This is a must-read for everyone interested in a look beyond the horizon of the Internet, e-commerce, etc. which preoccupies (if not drives) decision-making at far too many companies today.

Rating:
Summary: More than just going online or adding more computers
Review: The book is about going digital and not just adding more computers or going on-line but creating a whole digital business design for your company. It takes a look at how several business in different areas have gone digital and at different stages in the digital design of several business. I like that it doesn't preach that everything will work for everybody the same way and it stresses creating a good basic business design as the foundation for creating a good digital design. It sparks ideas and guidelines more than a cookbook approach. Good for the large IBM's to the storefront from dot.coms to mom and pops.

Rating:
Summary: How do you do? or how do you do business?
Review: The title of this book is really "How is your business digital?" However, because it is commmonly thought that the more digital strategies that are implemented the better your business will get, the authors have cleverly diguised the title by moving the words around. This is a cunning plot to sell more books.

The Authors are quick to point this out. It is not, they profess, the amount of digitalization of a business that matters, it is whether the manner of digitalization is appropriate for that business.

"How is your business digital?" looks at how digital tools can be used as part of a sound business plan, to be progressively implemented over approximately four years. The first step is to know "How is your business", which involves examining it in the cold light of reality. The digital strategies implemented should help to keep you better informed of how your business is from day to day, or hour to hour, or even minute to minute. The book includes instructions for an internet site tour which gives practical examples of good websites and functional choiceboards.

The authors do a good job of pointing out that digital strategies make it possible to know your customers in ways not possible before, and offers a stern warning that if you do not go out of your way to meet your customers, then they will take their needs elsewhere.

Rating:
Summary: Great introduction to DBD for those new to the game
Review: There are a plethora of business books that may be quickly tossed aside as current events rend their relevance asunder. This is not one of those books.

Slywotzky and Morrison have admirably produced a generic template by which any business in any industry may move toward a more digital business design. Offering all the answers would be an insurmountable task. Instead Slywotzky and Morrison provide the proper questions any businessperson should ask. The book's title, in the form of a question, is an indication that readers will be required to do much thinking to provide their own answers.

According to the authors, the objective of business is to know what the customer wants, rather than guessing and gambling that a set of pre-produced products will strike the customer's fancy. All in all, Slywotzky and Morrison sample companies that: 1. Develop a new DBD without the burden of legacy systems or infrastructure (Cisco, eBay) 2. Form a hybrid model of DBD from a largely virtual organization to one that encompasses virtual and physical facilities (Dell) 3. See the necessity to change from their traditional business model to DBD and have the courage to commit (Schwab, GE, IBM ) 4. May never have considered DBD in the past since their industry did not seem to fit the mold (Cemex)

These four divisions seem to apply to the majority of companies in existence today. In effect, any company can benefit from DBD if their fundamental business model is already sound.

Slywotzky and Morrison focus on successful companies that have adopted DBD. I would have been interested to hear more about companies that tried and failed to change their business. The authors do mention the Schlitz Beer debacle of the mid-1970's in which the company assumed (wrongly) that customers wouldn't notice an unappetizing haze at the bottom of the bottle. But this example doesn't address a failure to implement Digital Business Design. Perhaps in their next book, Slywotzky and Morrison can provide us their in-depth analysis of some specific DBD failures. There are plenty of examples to choose from this year.

An important dimension not addressed in the book is DBD adjustment during bad economic times. How might DBD be beneficial in an economic downturn, such as we are experiencing now? Unfortunately, the book was published just as the crash of 2000 occurred. There weren't many companies to examine in terms of approach to the sudden change of the economy. I presume we will see many such books in the coming year, and I would suggest that the authors of "How Digital..." update their book to include shining icons (if any) of economic survival, thanks, in part, to DBD.

Slywotzky and Morrison are quick to point out that the successful digital innovators did not arrive at their current state without pain. They also do not pretend that the DBD enhancements of these companies are perfect. But the companies are constantly striving to improve their business designs.

Chapter 15, "The Digital Organization", offers a succinct overview of what any business manager would have to do to get to a Digital Business Design. Concepts are laid out clearly and emphatically presented, often to the point of absolutism. For its directness alone, this single chapter should be extruded from the book and re-read occasionally. The authors will have you believing you can work through a transition to DBD.

This book serves as an excellent guide for the businessperson who wants to find better ways to know what the customer wants. It correctly deters thinking along the lines of upgrading current digital tools just because so many other companies are. In fact, due to the book's broad coverage of multiple industries, the authors are reticent to prescribe specific courses of action. This lack of detailed guidance, while intentional, might dismay a CEO in need of information on unique digital business designs.

However, for the novice, who may not fully comprehend the vast array of options in the new digital economy, How Digital is Your Business? is an excellent general tour. One must have a starting point when attempting to change the nature of his business, and this book is a fine first step.

The author credits for this book also include Karl Weber. His credentials indicate he is a business writer and editor. Perhaps his ghost-writing prowess gives the book its logical layout and smooth-flowing language. The narrative is exemplary for its concise delivery.

I heartily recommend this book to both the business manager and the student of business. Whether or not the companies mentioned in the book will continue to succeed in their implementation of DBD remains to be seen; but the soundness of the principals introduced in "How Digital Is Your Business?" should be of great use for years to come.

-S.R. Martin "nav66"

Rating:
Summary: Great introduction to DBD for those new to the game
Review: There are a plethora of business books that may be quickly tossed aside as current events rend their relevance asunder. This is not one of those books.

Slywotzky and Morrison have admirably produced a generic template by which any business in any industry may move toward a more digital business design. Offering all the answers would be an insurmountable task. Instead Slywotzky and Morrison provide the proper questions any businessperson should ask. The book's title, in the form of a question, is an indication that readers will be required to do much thinking to provide their own answers.

According to the authors, the objective of business is to know what the customer wants, rather than guessing and gambling that a set of pre-produced products will strike the customer's fancy. All in all, Slywotzky and Morrison sample companies that: 1. Develop a new DBD without the burden of legacy systems or infrastructure (Cisco, eBay) 2. Form a hybrid model of DBD from a largely virtual organization to one that encompasses virtual and physical facilities (Dell) 3. See the necessity to change from their traditional business model to DBD and have the courage to commit (Schwab, GE, IBM ) 4. May never have considered DBD in the past since their industry did not seem to fit the mold (Cemex)

These four divisions seem to apply to the majority of companies in existence today. In effect, any company can benefit from DBD if their fundamental business model is already sound.

Slywotzky and Morrison focus on successful companies that have adopted DBD. I would have been interested to hear more about companies that tried and failed to change their business. The authors do mention the Schlitz Beer debacle of the mid-1970's in which the company assumed (wrongly) that customers wouldn't notice an unappetizing haze at the bottom of the bottle. But this example doesn't address a failure to implement Digital Business Design. Perhaps in their next book, Slywotzky and Morrison can provide us their in-depth analysis of some specific DBD failures. There are plenty of examples to choose from this year.

An important dimension not addressed in the book is DBD adjustment during bad economic times. How might DBD be beneficial in an economic downturn, such as we are experiencing now? Unfortunately, the book was published just as the crash of 2000 occurred. There weren't many companies to examine in terms of approach to the sudden change of the economy. I presume we will see many such books in the coming year, and I would suggest that the authors of "How Digital..." update their book to include shining icons (if any) of economic survival, thanks, in part, to DBD.

Slywotzky and Morrison are quick to point out that the successful digital innovators did not arrive at their current state without pain. They also do not pretend that the DBD enhancements of these companies are perfect. But the companies are constantly striving to improve their business designs.

Chapter 15, "The Digital Organization", offers a succinct overview of what any business manager would have to do to get to a Digital Business Design. Concepts are laid out clearly and emphatically presented, often to the point of absolutism. For its directness alone, this single chapter should be extruded from the book and re-read occasionally. The authors will have you believing you can work through a transition to DBD.

This book serves as an excellent guide for the businessperson who wants to find better ways to know what the customer wants. It correctly deters thinking along the lines of upgrading current digital tools just because so many other companies are. In fact, due to the book's broad coverage of multiple industries, the authors are reticent to prescribe specific courses of action. This lack of detailed guidance, while intentional, might dismay a CEO in need of information on unique digital business designs.

However, for the novice, who may not fully comprehend the vast array of options in the new digital economy, How Digital is Your Business? is an excellent general tour. One must have a starting point when attempting to change the nature of his business, and this book is a fine first step.

The author credits for this book also include Karl Weber. His credentials indicate he is a business writer and editor. Perhaps his ghost-writing prowess gives the book its logical layout and smooth-flowing language. The narrative is exemplary for its concise delivery.

I heartily recommend this book to both the business manager and the student of business. Whether or not the companies mentioned in the book will continue to succeed in their implementation of DBD remains to be seen; but the soundness of the principals introduced in "How Digital Is Your Business?" should be of great use for years to come.

-S.R. Martin "nav66"

Rating:
Summary: Digitize or perish.
Review: This book starts with a framework to understand the meaning of digitization of Business. The concept of Digital Business Design (DBD) lays emphasis on understanding the business processes and then use IT to digitize it. This is a definite departure from many contemporary books that ignore many business issues in the context of Technology.

The comparison of performance between companies that are digitized more than their competitors is excellent. The improvement in performance is due to the speed and agility with which we can manage business processes that have more "bits" than "atoms".

The case studies discussed in this book - one chapter devoted to each company in every category of business - are well researched. In the section devoted to "Incumbents on the move" GE is an outstanding example. To quote Jack Welch in his recent speech to shareowners in Atlanta -" Digitization is, in fact, a game changer for GE. And, with competition cutting back because of the economy, this is the time for GE to widen the digital gap, to further improve our competitive position. We will do that by increasing our spending on information technology by 10% to 15% this year despite the weak economy."

Rating:
Summary: A Great Book on Using Digital Technology Strategically
Review: This is not a book on the latest technology fad. Instead, it is about business strategy, and how to use technology to develop and execute the right strategy. The book has three key premises:

1) A business must be run according to its "business design" (the framework the authors use for developing and articulating the strategy a business should follow).

2) Digital technology dramatically enhances the strategic opportunities available to any business today -- even if it is not obvious at first how.

3) Business success (i.e. growth and profitability) depends crucially on figuring out what those opportunities are, determining how to exploit those opportunities, and then aligning the company around executing on those opportunities.

The natural audience for this book is anyone who has P&L responsibility (or aspires to have such responsibility) in a business or a division.

In my opinion, the message is dead-on. In particular, I think the "business design" construct they use is extremely powerful and actionable. My only complaint is that I wish they had spent a chapter explaining the "business design" construct in more detail for readers not already familiar with it. (The authors might respond that they have already done so in their earlier books -- "Value Migration" and "The Profit Zone" in particular -- but as they themselves say, you must repeat your message 700 times if you want it to be heard!)

The book is extremely readable:

* The first two chapters explain the basic concept.

* Many of the subsequent chapters are devoted to an analysis of a particular business and how that business used technology to its strategic advantage.

* A few chapters are devoted to particular digitally-enabled strategic options or themes that the authors believe deserve highlighting.

* The last chapter exhorts the reader to champion and execute digital opportunities tirelessly, and gives some tips for how to do so.

All in all, a great book for anyone interested in this topic.

Rating:
Summary: A CEO/CIO Perspective on Computer Investment Objectives
Review: This title of this book is misleading to the detriment of the book's sales by understating the book's focus.

The subject matter is really how to create new business models for outperforming competitors by taking advantage of the potential of computers and electronic communications. You can become more digital and not differentiate yourself in the eyes of customers, and that will be a losing strategy, as the authors make clear. In fact, almost all companies fall into that trap now.

I found this to be by far the best book that the authors have written. The ideas are immediately applicable, the concepts are clear, and the writing is especially transparent.

This book will be valuable to CEOs by making them more aware of how to redesign a business model, and to bring them up-to-date on the potential applications of information technology for this purpose. The book will be valuable to CIOs by making them aware of business model redesign as a discipline.

Companies usually make computer investments because the old system can't be kept running any more, or because of some potential for incremental cost savings. By contrast with those approaches, the authors' concept of Digital Business Design is "about using digital options to craft a business model that is not only superior, but unique."

So before you spend all that money to put in all kinds of new data processing capability, consider this book. It will be your best investment.

But realize that the book is also not focused on technology, per se. So if you want to learn specifically about which digital technologies you should be applying, look elsewhere.

The book is made practical by a four quadrant approach to help you diagnose the quality of your business model's design and how digital you are. Most companies will find themselves in the weak business design quadrant. The dot coms are highly digitalized, but usually have weak business models. Some innovative companies have great business models but are slow to put in computer technology. In a series of case histories, the authors make the case for having much more rapid revenue, profit, and stock price growth from using Digital Process Design. The examples include Dell versus Compaq, Cemex's computer-based dispatch of roving cement trucks in Mexico, Charles Schwab versus Merrill Lynch, Cisco Systems versus 3 Com et al, GE, IBM, AOL, eBay, and Yahoo! I enjoyed the way the authors posed the next set of business model challenges these companies face today.

The benefits of this new approach include improvements in knowledge, better fitting with customers, operating in real time to get results faster, customers happily serving themselves to create better results at lower cost, preventing errors rather than fixing them after the fact, enormous productivity improvements rather than small ones, and totally integrated business systems within and without your company.

The authors give you a set of questions to lead you through the analysis necessary to develop your new business model, based on market and information technology perspectives. They also show you how to establish an organizational culture that will facilitate these changes.

I particularly enjoyed the sections show examples of 1000 percent improvements and misconceptions that hinder progress.

The only significant limitation I found to this book is that it did not discuss enough the ways to use nondigital methods to create improved business models. For best results, you should combine digitial and nondigital approaches. Many people try to overturn communications barriers totally with technology, but bad personal habits can steal away most of the benefit. A small amount of training in better communication practices can improve the business results by several hundred percent, independent of any spending on technology. Combine the two approaches, and the results can be astoundingly good.

After you have finished reading and implementing what you have learned, I suggest that you ask yourself where else we need new models of focus and operation. How could the charity you give money to or volunteer for be improved ? How about the operations of the government in your city or town? The indicated changes described in this book can be even more dramatic and powerful if done in these institutions as well. Then the whole society can move forward more rapidly.

Make a difference that matters!