“The Model of Capitalism is Broken!”
Interview about his latest book “Fixing the Game” in “Thinkers 50”
Bob Lutz, the former Vice Chairman of General Motors, is the most famous also-ran in the auto business. In the course of his 47-year rampage through the industry, he’s been within swiping range of the brass ring at Ford, BMW, Chrysler and, most recently, GM, but he’s never landed the top gig. It’s because he “made the cars too well,” he says. It might also have something to do with the fact that Maximum Bob, who could double as a character on Mad Men, is less an éminence grise than a pithy self-promoter who has a tendency to go off corporate message. That said, his new book, Car Guys vs. Bean Counters: The Battle for the Soul of American Business, has a message worth hearing. To get the U.S. economy growing again, Lutz says, we need to fire the M.B.A.s and let engineers run the show. Read the rest of this entry »
Source: The Wall Street Journal
There are two kinds of business models: those that have been disrupted by technology, and those that have yet to be
Any business model that can be disrupted by technology will be, and probably should be.
According to author Don Tapscott for some firms it is already too late. Their business models have been rendered redundant by new technology, and their failure to respond has resulted in a rapid decline.
The reality that technology will leave no business – be it private or public – untouched is now firmly on every organization’s radar. New business models will be dictated by the technology that disrupted existing ones.
In this section, we focus on how businesses are using nascent concepts such as “anything-as-a-service”, “multisided business models”, “the co-creation of content” and “innovation from the bottom of the pyramid” to create successful and sustainable businesses in the face of disruption. Read the rest of this entry »
Source: The Economist
We launch a quarterly review of business books by considering six of the best
THERE are few divisions of the book industry with a worse reputation than business publishing.
Hundreds if not thousands of business books come out every year, all with glowing press releases and effervescent puffs. Literary editors tend to consign them straight to the bin.
This is understandable. An astonishing number are worthless. Celebrity CEOs blow their trumpets, consultants market miracle cures, self-help gurus promise that you can grow rich by working four hours a week. Wait a few months: the CEOs have been caught with their hands in the till, the miracle cures are poisons, the self-help gurus bankrupt. What remains is a tangle of jargon-ridden prose.
Understandable but wrong. It is silly to dismiss a whole genre just because so many business books are bad. There are some excellent titles in among the dross: CEO biographies that capture something essential about business, useful prescriptions for restoring companies to health, even self-help books that help make sense of the contradictory pressures of modern corporate life. The average employed person in the West spends more waking time in the office than at home, so it makes no sense to be so dismissive of writers who focus on such an important activity.
The best books provide an insight into how business revolutionises the world. Why is the centre of growth shifting from the developed to the developing countries? Why do some companies succeed and others fail? Why are we swapping the white collar for the no-collar workplace? Why do managers say the astonishing things that they say? The answers to these questions lie in the business books that many literary editors so casually toss out. Read the rest of this entry »
Source: The Economist: Schumpeter
How to cope with data overload
GOOGLE “information overload” and you are immediately overloaded with information: more than 7m hits in 0.05 seconds. Some of this information is interesting: for example, that the phrase “information overload” was popularised by Alvin Toffler in 1970. Some of it is mere noise: obscure companies promoting their services and even more obscure bloggers sounding off. The overall impression is at once overwhelming and confusing.
“Information overload” is one of the biggest irritations in modern life. There are e-mails to answer, virtual friends to pester, YouTube videos to watch and, back in the physical world, meetings to attend, papers to shuffle and spouses to appease. A survey by Reuters once found that two-thirds of managers believe that the data deluge has made their jobs less satisfying or hurt their personal relationships. One-third think that it has damaged their health. Another survey suggests that most managers think most of the information they receive is useless. Read the rest of this entry »
Source: The Wall Street Journal
Switzerland is the world’s most innovative country and Europe leads the globe according to a report by the French business school Insead.
Their annual Global Innovation Index, published today, shows that more than half of the top 10 and top 20 countries in the world are European, although predominantly drawn from the north of the continent.
According to Soumitra Dutta, professor of business and technology at the Paris-based school, the report measures two things; the capacity of a country to innovate, so looking at things like education and infrastructure, and the outputs of the economy in terms of scientific and creative output.
“At a high level the model captures the success of an economy at creating the conditions that support innovation and in actually translating those conditions into outputs of innovation,” he said.
He refuted suggestions that Switzerland was somehow wrongly placed. “Many people think of Switzerland as only having banks and they don’t do anything else. However if you look at patents on a per GDP basis, it is ranked number one in the world.”
Looking across Europe, Prof. Dutta said the report showed a worrying two-track course. While northern Europe was successful globally, southern and eastern was not doing well. The highest placed eastern European country is Estonia, at 23, ahead of Spain (32), the highest placed southern European country.
According to Gary Nugent, head of corporate marketing & marketing services at Alcatel-Lucent, one of the report’s sponsors, emerging nations such as China (29), Brazil(47) and India (62) showed a high efficiency in their economies to innovate and were moving up the tables as their economies develop. Read the rest of this entry »