Digital Capital: Harnessing the Power of Business Webs

308 Pages·2000·3.3 MB·English

by  Don Tapscott David Ticoll David Ticoll Alex Lowy

Page i
"The Internet has seamlessly interconnected customers, suppliers, and the workforce, and b-webs are effectively blurring all
traditional roles and changing how we think about infrastructure. Digital Capital is a breakthrough—a must-read to understand
the dynamics of how this new economy will unfold."
—Craig Conway, President and CEO, PeopleSoft, Inc.
"Digital Capital is an insightful guide to the rules of engagement in the new economy. Its explanation of collaborative business
webs—the emerging market models for value creation—should be required reading for anyone who wants to reach the digital
customer."
—Michael S. Dell, Chairman and CEO, Dell Computer Corporation
"Exciting and compelling, Digital Capital concisely captures important new thinking on Internet business models and how to
apply them today."
—Larry Downes, Coauthor, Unleashing the Killer App
"The seminal book on business webs and how they can help move your business units into the new, new economy. Every
business leader should read this book!"
—Robert Eaton, Former Chairman, DaimlerChrysler
"With a surgeon's precision, Tapscott, Ticoll, and Lowy define and explore new business models and opportunities coming to
light in the emerging virtual 'Agora.' Digital Capital is the guide to the new world of Internet work."
—William T. Esrey, Chairman and CEO, Sprint Corporation
"One of the most important challenges facing today's executives is the need to disaggregate and reaggregate their firms to
harness the power of business webs. Digital Capital presents an actionable blueprint for meeting this challenge. If you have any
responsibility for the future of your business, read this book."
—Durk Jager, Chairman and CEO, Procter & Gamble
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"Simply a must-read. Digital Capital provides real out-of-the-box insights, and, even more, excites and captivates you."
—Jeff Papows, Former CEO, Lotus Development Corporation, and Author, Enterprise.com
"Digital Capital is an insightful and recommended read for anyone wrestling with the impact of e-business and the pace of
change. Our business literally exploded with the b-web thinking outlined in this book."
—Peter Schwartz, Chairman and CEO, Descartes Systems
"Digital Capital provides clear insight into responding to the new economy. Working with the authors, our Corporate Foreign
Exchange division embodied the ideas behind this book in its e-business strategy, and is now ready to participate successfully in
many business webs."
—Alan Stewart, Deputy Chief Executive, Thomas Cook Holdings Limited, and Chairman, Global and Financial Services,
Thomas Cook Group
"Digital Capital is the guidebook for any business leader who wants to win in the e-business world. Well-written and
provocative, this book provides us with the first practical navigation system for what the authors coin as 'b-webs'—the new
platform for winning in the twenty-first century."
—Noel Tichy, Professor, University of Michigan, and Coauthor, The Leadership Engine and Every Business Is a Growth
Business
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Digital Capital
Harnessing the Power of Business Webs
Don Tapscott
David Ticoll
Alex Lowy
Page iv
Copyright 2000 Don Tapscott, David Ticoll, and Alex Lowy
All rights reserved
Printed in the United States of America
04 03 02 01 00 5 4 3 2 1
Library of Congress Cataloging- In- Publication Data
Tapscott, Don, 1947-
Digital capital: harnessing the power of business webs / Don Tapscott, David Ticoll,
Alex Lowy.
p.cm.
Includes bibliographical references and index.
ISBN 1-57851-193-3 (alk. paper)
1. Electronic commerce—Economic aspects. 2. Internet (Computer
network)—Economic aspects. 3. World Wide Web—Economic aspects. 4. Information
technology—Economic aspects. I. Lowy, Alex. II. Ticoll, David. III. Title.
HF5548.32.T36 2000
658.8'4—dc21
00-025017
The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for
Publications and Documents in Libraries and Archives Z39.48-1992.
Page v
CONTENTS
Preface ix
Origins xi
Part I 1
Introduction
1 3
Value Innovation through Business Webs
The MP3 Story 3
Driving Forces of the Digital Economy 5
Disaggregation and Reaggregation of the Firm 7
Popular Approaches to Business-Model Innovation 13
What Is a B-Web? 17
B-Web Corollaries 22
Digital Capital 26
B-Web Taxonomy 28
Part II 37
The New Models of Wealth Creation
2 39
Agoras
The Inner Life of Agoras 39
An Agora in Your Future 47
Elements of Agora B-Web Design 50
Digital Business Models 56
Key Success Factors 64
Leader's Guide to Agoras 65
3 67
Aggregations
The Digital Grocer 67
What Do Aggregations Do? 73
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Aggregations: Death (and Life) of a Salesman 77
Strategic Points of Leverage 78
Organization 81
Engage Customers to Create Value 88
Key Success Factors 90
Leader's Guide to Aggregations 91
4 93
Value Chains
Cisco: The Quintessential B-Web Leader 93
Value Chains Defined 95
The Crisis of Industrial-Age Value Chains 98
Transforming Value Chains 99
Points of Leverage 102
Value-Chain Technology: Digital Spinning Wheel 112
Key Success Factors 116
Leader's Guide to Value Chains 118
5 119
Alliances
The Open-Source Phenomenon 119
The Power of Alliances 121
Capturing Value from Alliance B-Webs 124
Gift Economies: The Golden Rule 130
Types of Alliances 134
Key Success Factors 139
Leader's Guide to Alliances 140
6 143
Distributive Networks
Networks in Your Life 143
Distributive Networks Defined 145
Industrial-Age Dinosaurs? 146
Distributive Network Effects 150
Digital Distributive Networks 152
B-Web Enablers 162
Key Success Factors 163
Leader's Guide to Distributive Networks 164
Part III 167
The Human and Relationship Elements of Digital Capital
7 169
People: The Human Capital in the Business Web
The Molecularization of Human Capital 171
Page vii
The Inter-Enterprise Human Resource 174
B-Web Culture: Nine Imperatives 175
8 189
Marketing: Relationship Capital in the Web
The Demise of the Four P's 190
The Rise of Relationship Capital 192
Power to the People? 193
The New Practice of Marketing 195
The New Marketing: Eight Imperatives 199
Part IV 207
Strategies for Business Webs
9 209
How Do You Weave a B-Web?
Step 1: Describe the Current Value Proposition 211
Step 2: Disaggregate 213
Step 3: Envision B-Web-Enabled Value 218
Step 4: Reaggregate 221
Step 5: Prepare a Value Map 223
Step 6: Do the B-Web Mix 225
Main Messages 228
10 231
Harvesting Digital Capital
Focus on Value 232
Redefine the Boundaries of the Firm 233
Business Models Patents: Yes or No? 241
Digital Capital Begets Market Capital 243
The Power of B-Webs 247
Notes 249