New Patterns of Power and Profit

How did Capital One and Uber implement nearly identical business models, focusing on customers that are most profitable to serve? **Why are Google and Amazon so valuable to us? Why are Google, Apple, Microsoft, and Amazon so difficult for competitors to displace? And why can Google charge almost anything it wants for keywords, since no form of competition will force prices down? The information-based business models of these companies, and many more, are exploiting the patterns described in this book.

This book instills pattern-based thinking that will prepare all readers for greater success in our rapidly changing world. It will help executives, regulators, investors, and concerned citizens better navigate their way through the digital transformation of everything.

Professor Clemons presents six patterns for staying competitive and achieving profitable business models. The author'sreframe-recognize-respond framework teaches readers how to transform unfamiliar problems into familiar patterns, how to determine which patterns to apply in different situations, and how to respond most effectively. Information changes everything. This book is a guide to power and profit from understanding changes in the age of digital transformation.

First book to show how to develop an information-based strategy around patterns Describes the new patterns of power that are the result of the digital transformation Shows how to identify newly vulnerable markets that offer the competitive advantage of new entrants Explores working with the patterns to manage strategic uncertainty about the firm's operating environment Explores making the decisions regarding which information-based strategies to implement, based on the uncertainty of the firm's future competitive environment

Autorentext

Eric K. Clemons is Professor of Operations, Information and Decisions at the Wharton School of the University of Pennsylvania. For thirty years he served as the Founder and Project Director for the School's Sponsored Research Project on Information: Strategy and Economics. He worked with C-suite officers from organizations like Merrill Lynch, Marriott Hotels, Lever Brothers, and Continental Airlines, to develop research that advanced their daily decision making. His experience includes analyzing bet-the-farm decisions with individuals as varied as the Chairmen of the New York Stock Exchange and the London Stock Exchange and the Chief of Naval Operations, to the president and chief operating officer of a rapidly growing craft brewer. He is a pioneer in the digital transformation of business strategy.

Inhalt

1. Introduction.- 2. Information Changes Everything: It's Not What You Know, It's What You Know Before Everyone Else.- 3. The Power of Framing: If You Can't Answer the Question, Turn it into a Question You Can Answer.- 4. Resonance Marketing in the Age of the Truly Informed Consumer: Creating Profits through Differentiation and Delight.- 5. Online Brand Ambassadors and Online Brand Assassins: Master The New Role of the Chief Perception Officer.- 6. Resources, Platforms, and Sustainable Competitive Advantage: How to Win and Keep on Winning.- 7. Understanding The Power of Third Party Payer Businesses and Online Gateways.- 8. The Continuing Power of Third Party Payer Businesses.- 9. Power and the Potential for the Abuse of Power in Online Gateway Systems: An Analysis of Google.- 10. Scenario Analysis and Managing Strategic Ambiguity: How to Remember Future Events, before They Actually Occur.- 11. Examining the Wide Range of Business Models Currently in Use in Online Businesses: How to Understand A New Business Using Existing Frameworks.- 12. Conclusions: So What is Digital Transformation of the Firm and is it a Big Deal?.