Reviews for The New Age of Innovation: Driving Cocreated Value Through Global Networks

1. Useful analysis of the ongoing transformation of business

   Rated 4 out of 5 stars, September 12th, 2008

   Unlike many books on new economies or global changes, this work cites examples from around the world. C. K. Prahalad and M. S. Krishnan provide illustrative case studies from firms in India, Canada, the United States, Europe and elsewhere. They examine the various interactions among these firms and locales, grounding their theoretical discussions in reality. To add even more clarity, they also include many drawings and charts; unfortunately, these tend to force a simplistic Cartesian graphing system onto complex changes. Likewise, their abbreviations are more memorable than clear. Overall, though, these are minor glitches in an innovative and useful study. The authors' analyses of how firms are interacting internationally, and redesigning themselves and the nature of business in the process, are both interesting and valuable. Its discussions of broad trends are unusually well-informed. getAbstract recommends this book to executives and others committed to keeping up with change, especially on a large, even global, scale.

2. Prahalad NEEDS Gary Hamel

   Rated 1 out of 5 stars, July 12th, 2008

   Well, i bought this book with great expectations. However after reading it, i was very disappointed with it. Hardly any interesting insights and i was falling asleep reading this book. The absurd use of this phoney management formula really started to get on my nerves i.e. n=1 etc. Yawn yawn. I can see why Prahalad wrote with Gary Hamel- HE NEEDED Gary Hamel probably more than Gary Hamel needed Prahalad. This book is apauling so take my advice and DONT BUY IT

3. How to prosper in the "N = 1 and R = G" world

   Rated 5 out of 5 stars, May 12nd, 2008

   
   I have read and then reviewed all of C.K. Prahalad's previous books and thus was especially interested in reading this book, co-authored with M.S. Krishnan. As they explain in the Introduction, "We view innovation as shaping consumer expectations as well as responding continually to the changing demands, behaviors, and experiences pf consumers. We must do this by accessing the best talent and resources available anywhere in the world. These two ideas must be connected - the resources of many to satisfy the needs of one.. We suggest that this is possible only if we pay attention to the glue that enables ideas to be transformed into operations. We will focus on the business processes and analytics as the glue."
   
   Prahalad and Krishnan acknowledge that there is a fundamental transformation now underway, worldwide, that will radically alter the very nature of an enterprise and how it creates value. This foundation of this transformation has two basic pillars:
   
   1. "Value is based on unique, personalized experiences of consumers. [begin italics] The focus is on the centrality of the individual. [end italics] We will designate this pillar as N = 1 (one consumer at a time.)"
   
   "2. No firm is big enough in scope and size to satisfy the experiences of one consumer at a time. [begin italics] The focus is on access to resources, not ownership of resources. [end italics] We will designate this [pillar as R = G (resources from multiple vendors and often from around the globe)."
   
   There are several key elements of this transformation. Prahalad and Krishnan focus on five: Value is shifting from products to solutions to experience; all companies seek access to the talent, components, products, and services they need from the best sources; flexible systems are a prerequisite and must be developed; resources in a company's ecosystem must be continually configured; and finally, specific models must be developed that enable a company to focus on one consumer from among the millions. These are indeed formidable challenges. Prahalad and Krishnan suggest a number of strategies and tactics to consider when responding to them. When proceeding through the rigorously and eloquent narrative of this book, it is imperative to keep in mind that their ultimate objective is to help companies to prosper in this "N = 1 and R = G" world. To that end, they share the most important business lessons learned from a number of exemplary companies that include Amazon.com, Apple Computer, eBay, Google, ICIC Bank, Tata Consultancy Services (TCS), Unilever, and United Parcel Service (UPS).
   
   To me, some of the most valuable material is provided in Chapter 5 (Pages 109-145) as Prahalad and Krishnan discuss the requirements of an information and communication technology (ICT) architecture and the governance mechanisms that can connect business processes and analytics to data and applications. In one of several graphics, Table 4.1 (Pages 124-126), they summarize the specificati9ons of the new ICT architecture in terms of four categories (i.e. "buckets"): Confronting Reality (e.g. capacity to link large systems and multiple databases), Compliance and Change (e.g. regulatory compliance and change), Evolving Capabilities (e.g. Security and privacy of data), and Enabling Foundations (e.g. from transaction-driven to event-driven systems).
   
   Given the fundamental shift in the focus, the sources, and the processes of innovation and value creation, what do suggest for an agenda for managers to consider? They respond to that question in the final chapter. Specifically, they invoke a metaphor --- The New House of innovation - whose design and construction must be viewed as an "integrated package" in terms of its architecture, construction materials, and subsequent maintenance. The organizational transformation process must also be comprehensive and cohesive during a transition period (i.e. a "migration") of management practices to develop new skills, attitudes, and behaviors. It remains for decision-makers in each organization to design and then build its own new house pf innovation. Fortunately, they can use the information and counsel that C.K. Prahalad and M.S. Krishnan provide to guide and inform those initiatives.
   
   Those who share my high regard for this brilliant volume are urged to check out Competing in a Flat World: Building Enterprises for a Borderless World co-authored by Victor Fung, William Fung, and Yoram (Jerry) Wind as well as Competing on Analytics: The New Science of Winning co-authored by Thomas Davenport and Jeanne Harris. Also Enterprise Architecture as Strategy: Creating a Foundation for Business Execution co-authored by Jeanne Ross, Peter Weill and David Robertson and Dean Spitzer's Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success.