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Unleashing the Killer App: Digital Strategies for Market Dominance, by Larry Downes Chunka Mui
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Amazon.com Review
You don't have to look far to see that technology is driving today's economy. Turn on CNBC, open The Economist, scan the Wall Street Journal--you'll find that technology is the prime force creating growth in almost every industry. In Unleashing the Killer App, authors Larry Downes and Chunka Mui look at the dynamics of technological change and its potential to create "killer apps." The authors describe a killer app as a product or service that "wind up displacing unrelated older offerings, destroying and re-creating industries far from their immediate use, and throwing into disarray the complex relationships between business partners, competitors, customers, and regulators of markets." Examples of killer apps throughout history include the Welsh longbow, the pulley, the compass, moveable type, and the Apple Macintosh. And today, with our increasingly networked economy (for example, the World Wide Web), killer apps are appearing all around us. Downes and Mui argue that the dominant trend behind the proliferation of killer apps is a combination of Moore's Law, which states that the processing power of the CPU doubles every 18 months, and Metcalfe's Law, which observes that the value of a network increases dramatically with each node that's added to it. These two laws are fundamentally changing how businesses interact with each other and with their customers. To exploit these changes, the authors outline 12 points for designing a digital strategy to help you identify and create killer apps in your own organization. The book includes dozens of examples of how killer apps were discovered and implemented. Unleashing the Killer App provides an excellent framework for rethinking the nature of business in today's wired economy. No matter the size of your company or what it does--health care, publishing, or fast food--there's probably a killer app lurking somewhere. This book will help you find it. Highly recommended. --Harry C. Edwards
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From Publishers Weekly
To succeed in businessAwhether you work for a large corporation or own your own companyAyou have to be ready with the "killer application," the next wave of cybertechnology. Owing to the rapidly changing business environment, particularly because of the World Wide Web, managers will inevitably lose out to competition if they're not utilizing the latest technology. Companies must alter their operating philosophy from a strategy intended to provide growth for a two- to three-year period to a constantly evolving approach. "What has changed... are the basic principles underlying how you develop products, operate, and yes, even plan. To succeed digitally, you need to eat, sleep, breathe, and think digitally." The authors have devised a 12-step program designed to be "the beginning of a building code for commercial organizations in cyberspace." Among these strategies: structuring transactions as a joint venture, cannibalizing market share and hiring the children. The authors are serious; they advise executives to listen to young people, including their own children. By watching children play with video games or computers, executives can learn more about their products than if they tried to perform the same tasks. The authors, affiliated with Diamond Technology Partners, an executive learning forum, provide various examples of companies that have successfully incorporated these strategies, including AOL, McDonald's and Lotus Notes. With an insightful foreword by Nicholas Negroponte, this book presents a convincing case for a radical shift in current business strategies. Copyright 1998 Reed Business Information, Inc.
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Product details
Hardcover: 243 pages
Publisher: Harvard Business Review Press (April 22, 1998)
Language: English
ISBN-10: 087584801X
ISBN-13: 978-0875848013
Product Dimensions:
6.5 x 1.2 x 9.8 inches
Shipping Weight: 1.3 pounds (View shipping rates and policies)
Average Customer Review:
3.7 out of 5 stars
73 customer reviews
Amazon Best Sellers Rank:
#2,136,044 in Books (See Top 100 in Books)
The authors define a "killer application" as "a new good or service that establishes an entirely new category and, by being first, dominates it, returning several hundred percent on the initial investment." As they explain, the primary forces at work in spawning today's "killer apps" are both technological and economic in nature. "The technology we are concerned with is the transformation of information into digital form, where it can be manipulated by computers and transmitted by networks." Digital strategies are needed to achieve market dominance. They suggest several, each worthy of careful consideration. For me, this book has two great values: It helps us to understand what a "killer app" is and can accomplish; also, for those lacking a "killer app" and without much chance of possessing one, it suggests how to increase and enhance the appeal of what one does have, such as it is. Given a choice, of course, anyone would prefer to have a "killer app" when proceeding into an uncertain future. Lacking one, there are still opportunities to recognize...and to pursue. Most companies will not dominate but can survive if committed to the appropriate strategies. For them, this book could well be the difference between life and death.
I was disappointed. The 12 principles were so vague as to be useless. As a web developer, every time I read these so-called strategy books I'm so disappointed. They're all written the same way -- the author makes some kind of statement that they think is profound, like "Treat your customers as a market segment of 1" then they write about one or two companies they've found that supposedly follow this statement. Well guess what, for every "principle" you can find a company that violates it and is wildly successful. For example, Microsoft doesn't treat it's customers as a "market segment of 1" and it's kicking *ss. I can easily find examples of successful web companies that don't follow the authors' principles, which leaves me wondering about how serious to take them.
If you ever want to read a book that attempts to use every technology buzzword in existance, this is the one. This book has some interesting examples of companies that are gaining a competitive advantage using technology, but the author's try to be a little too "cute" with their knowledge of industry buzzwords. Give only a cursory reading of part 1 or just skip it and go right to part 2 and 3.One thing that really annoyed me thoughout the book was the author's attempts to create then overuse something called Metcalf's Law and Moore's Law out of a couple of common sense observations. In each chapter, the authors constantly refered back to Metcalf's Law and Moore's Law as if these "laws" are on the same plateau as some created by Einstein. Both Metcalf and Moore are intellegent, excellent inventors, and astute businessmen, but I would never try to create some "law" out of a couple of common sense observations. After reading this book, I envision the authors having statues of Metcalf and Moore in their offices that they kneel in front of daily for inspiration.My opinion, don't spend your own money on this book. Borrow it or get your company to pay for it.
This book is thought provoking, but lacks detail and any real clear strategy for unleashing killer apps. The authors appear to lack a fundamental understanding of economics, most glaringly the definition of a public good. (For the record, a public good is both non-rival and non-excludable.) The real-world examples in the book lack precision and fail to inform the reader of how to uncover his or her own killer app. As a primer in e-strategy, it's not bad. But it won't get you much further than first base.
The forward from Nicholas Negroponte should have been warning enough. Another "new-era-economy meets the internet" book crying out for attention, with plenty of stories, but little hard evidence or data. Many false economic assumptions. They do make the obvious case for the impact of information technology, but never bother to address some fundamental questions. For example, why hasn't productivity (as measured by GDP/capita) increased (at all) with Moore's Law and the advent of electronic commerce?
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