Rating

8

Qualities

  • Applicable

Recommendation

The Internet has forever changed the way companies conduct business. Management consultant Philip Evans examines how new information technologies are forcing executives to revise the way they approach business strategy. getAbstract recommends Evans’s shrewd presentation to corporate executives and future leaders seeking a way forward in the information-based economy.

Summary

Two ideas form the basis of traditional business strategy: First is the theory of increasing returns, proposed by Bruce Henderson, founder of the Boston Consulting Group. Henderson contended that the greater an organization’s size and experience, the greater its competitive advantage. Second is the theory of the value chain, suggested by Michael Porter, a Harvard Business School professor. Porter identified that a business’s operations comprise many steps, and a discrete strategy may direct each one. He posited that economizing each activity and efficiently managing transaction costs – “the glue that holds value chains together” – provides...

About the Speaker

Philip Evans is a managing director at the Boston Consulting Group and co-author of Blown to Bits.


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