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Rethinking Competitive Advantage: New Rules for the Digital Age
How do you gain an edge in the digital world order?
“Another book for the ages from a master! . . . Particularly insightful is his emphasis on how the end-to-end individual consumer experience will separate winners from losers in our new digital age.”—Fred Hassan, chairman, Caret Group; former CEO, Schering-Plough and Pharmacia
The old ways of creating competitive advantage for your business—such as building moats to ward off competitors—have become dangerous. Giants like Amazon and Alibaba are creating vast new market spaces through a deft combination of tools like machine learning and business savvy that reimagines customer experiences while generating immense shareholder value.
A handful of traditional companies, including Fidelity Investments, Walmart, and B2W, have adopted these new approaches to reinvigorate their businesses. Most, however, are stalled—and the clock is running out.
In this lively, accessible guide, Ram Charan, bestselling author and adviser to some of the world’s top CEOs and boards, redefines competitive advantage for the digital-first era, offering a set of new rules to get
• Create an ecosystem with third-party partners to revolutionize and personalize the customer experience.
• Empower teams focused on a single task, building a “social engine” that drives constant innovation, fast execution, and customer satisfaction.
• Attract funders who understand the big that beyond a certain scale, major upfront spending will turn into a cash-generation machine.
Filled with stories that peek behind the curtain of digital behemoths as well as traditional companies that have transformed their organizations, Rethinking Competitive Advantage offers concrete advice and methods to help you conceive of new market spaces and moneymaking models.
Competing against digital giants might seem daunting, if not impossible. The necessary computing power is within any company’s reach. By borrowing from these digital winners’ playbooks, traditional companies and upstarts alike can gain an upper hand. Whether you’re in the C-suite or brainstorming the next big idea from your garage, Rethinking Competitive Advantage is the ultimate guide to creating competitive advantage today.
“Another book for the ages from a master! . . . Particularly insightful is his emphasis on how the end-to-end individual consumer experience will separate winners from losers in our new digital age.”—Fred Hassan, chairman, Caret Group; former CEO, Schering-Plough and Pharmacia
The old ways of creating competitive advantage for your business—such as building moats to ward off competitors—have become dangerous. Giants like Amazon and Alibaba are creating vast new market spaces through a deft combination of tools like machine learning and business savvy that reimagines customer experiences while generating immense shareholder value.
A handful of traditional companies, including Fidelity Investments, Walmart, and B2W, have adopted these new approaches to reinvigorate their businesses. Most, however, are stalled—and the clock is running out.
In this lively, accessible guide, Ram Charan, bestselling author and adviser to some of the world’s top CEOs and boards, redefines competitive advantage for the digital-first era, offering a set of new rules to get
• Create an ecosystem with third-party partners to revolutionize and personalize the customer experience.
• Empower teams focused on a single task, building a “social engine” that drives constant innovation, fast execution, and customer satisfaction.
• Attract funders who understand the big that beyond a certain scale, major upfront spending will turn into a cash-generation machine.
Filled with stories that peek behind the curtain of digital behemoths as well as traditional companies that have transformed their organizations, Rethinking Competitive Advantage offers concrete advice and methods to help you conceive of new market spaces and moneymaking models.
Competing against digital giants might seem daunting, if not impossible. The necessary computing power is within any company’s reach. By borrowing from these digital winners’ playbooks, traditional companies and upstarts alike can gain an upper hand. Whether you’re in the C-suite or brainstorming the next big idea from your garage, Rethinking Competitive Advantage is the ultimate guide to creating competitive advantage today.
- GenresBusiness
224 pages, Hardcover
Published April 6, 2021
76 people are currently reading
260 people want to read
About the author
Ram Charan
149 books214 followersRam Charan is an Indian-American business consultant, speaker, and writer resident in Dallas, Texas.
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Displaying 1 - 19 of 19 reviews
May 1, 2021
Un livre généraliste qui offre une analyse à très haute altitude.
L'auteur présente à (trop) haut niveau comment une entreprise peut développer son avantage compétitif. Il présente certaines idées intéressantes mais toujours en restant loin d'un modèle concret. Pour détailler ses idées, il se fonde presqu'uniquement sur Amazon ou Netflix (donc pour les petites ou moyennes entreprises, passez votre tour, il n'y a rien pour vous).
Il explique que les entreprises doivent éviter de laisser à des distributeurs ou des détaillants le loisir d'être en contact avec les clients, car c'est là où tout se joue. L'entreprise doit devenir le point de contact pour les client, développer un écosystème autour des besoins de ces clients, et à développer des services ou des produits selon leurs besoins - et non plus développer des services ou des produits selon les capacités de l'entreprise, ce qui limiterait les profits. C'est ainsi que l'écosystème ainsi créé devient compétitif, et non l'entreprise.
C'est l'essence du propos de ce livre.
L'auteur présente à (trop) haut niveau comment une entreprise peut développer son avantage compétitif. Il présente certaines idées intéressantes mais toujours en restant loin d'un modèle concret. Pour détailler ses idées, il se fonde presqu'uniquement sur Amazon ou Netflix (donc pour les petites ou moyennes entreprises, passez votre tour, il n'y a rien pour vous).
Il explique que les entreprises doivent éviter de laisser à des distributeurs ou des détaillants le loisir d'être en contact avec les clients, car c'est là où tout se joue. L'entreprise doit devenir le point de contact pour les client, développer un écosystème autour des besoins de ces clients, et à développer des services ou des produits selon leurs besoins - et non plus développer des services ou des produits selon les capacités de l'entreprise, ce qui limiterait les profits. C'est ainsi que l'écosystème ainsi créé devient compétitif, et non l'entreprise.
C'est l'essence du propos de ce livre.
June 2, 2021
I found this book highly engrossing read. This book has outined various key features that enable digital giants to attain exponential growth in a relatively quick period and why traditional companies fell behind.
Digital giants focus on improving the consumer experience by leveraging technology, use of abundant data & algorithms to make the experience personalized, constant innovation, and the ability to constantly search for new avenues for multiple revenue generation.
Their advantage relies on- fast & innovative decision-making, thinking big not in an incremental fashion,scaling up very fast,exponential growth, agile & creative team and no unnecessary bureaucracy.
This book has beautifully made references of tech giants like Amazon,Netflix,Alibaba etc and their key features.
This book has very few loose ends and the author has delivered very high quality content in this book
Highly recommended.
For more- https://dddebjeet.wordpress.com
Digital giants focus on improving the consumer experience by leveraging technology, use of abundant data & algorithms to make the experience personalized, constant innovation, and the ability to constantly search for new avenues for multiple revenue generation.
Their advantage relies on- fast & innovative decision-making, thinking big not in an incremental fashion,scaling up very fast,exponential growth, agile & creative team and no unnecessary bureaucracy.
This book has beautifully made references of tech giants like Amazon,Netflix,Alibaba etc and their key features.
This book has very few loose ends and the author has delivered very high quality content in this book
Highly recommended.
For more- https://dddebjeet.wordpress.com
December 31, 2021
Свежая работа Рэма Чарана - автора очень важной для предпринимателя книги "Исполнение". Очень своевременные мысли о том, как должна сейчас выглядеть компания, чтобы не сойти с дистанции из-за конкуренции с молодыми, цифровыми бизнесами.
В конце книги есть приложение с семью вопросами, на которые должен сейчас ответить себе каждый руководитель, чтобы понять готов ли он к конкуренции на новом уровне.
В конце книги есть приложение с семью вопросами, на которые должен сейчас ответить себе каждый руководитель, чтобы понять готов ли он к конкуренции на новом уровне.
March 10, 2023
The book provides a clear and concise explanation of the fundamental and systematic differences between digital tech companies, and distills them into six key rules. This model is a valuable tool for leaders seeking to navigate and adapt to the rapidly evolving digital landscape. Additionally, the book emphasizes that the transformation to a digital world cannot be delegated; it requires a structural change that must be embraced by the entire organization, starting with its leaders.
May 21, 2021
Awesome!
It shatters traditional thinking and that also means our thinking about competitive advantage.
One more Gem from the Guru!
May God Bless him!
It shatters traditional thinking and that also means our thinking about competitive advantage.
One more Gem from the Guru!
May God Bless him!
June 27, 2021
Many of us are experiencing the greater convenience using digital platforms. These digital platforms have enabled lower price, greater convenience, and instant access to relevant information to the consumers, businesses and employees. These digital giants have forever changed our experience as consumers and employees.
Creating competitive advantage is different in the digital age. In the digital age. Competitive advantage is the ability to win the ultimate price the consumer preferences, repeatedly through continuous innovation on behalf of the consumer to create immense value for shareholders. Core competencies have a self-life. They become obsolete and new ones have to be built. Today due to information availability in abundance, the consumer takes the call.
Roadblocks to moving into Digital
1. An overreliance to outdated theories
2. A dominant psychology of incrementalism and short term thinking
3. A blind spot when it comes to customers
4. Acceptance of existing boundaries
5. Belief in mass markets and segmentations
New Rules of Competition
# 1. A personalized consumer experience is key for exponentiation growth.
The digital companies imagine a 100X market space that does not yet exist. Digital giant’s relentlessly focus on consumer’s total experience end and work backwardly. They operate with the mind-set of Market of One – M=1, is the ultimate personalization. Technology is important, but the ultimate focus is on the consumer. Mapping the customer journey is emerging as distinct expertise. It involves breaking apart all of the interactions and decisions steps a consumer goes through from first exposure to an idea or recognition of a need through to what happens after the person makes a purchase. Leaders in the digital age takes on a stiffer but more exhilarating challenge.
# 2. Algorithms and Data are essential weapons
The digital platforms are built using algorithms and data that collects and analyses various customer experiences and behaviors. Each algorithm is a simpler sequence of steps for solving a problem. The ability to personalize an end-to-end consumer experience creates market space of 100x. A digital platform is also key to exponential growth. Standardization of data will eliminate lot fo the waste in record keeping and combined with algorithms can detect fraudulent billings Technology, logistics/ distribution and customer experience are the key pillars for digital growth.
#3. A company does not compete, its ecosystem does.
The ecosystem accelerates the growth. In digital age, competitive advantage goes to those who build ecosystem or network that leverages digital technology for the benefits of the consumers and paves the way to multiple streams of revenue. Ecosystem are never permanent, because the work is moving at such a ferocious speed, technology changes continue to accelerate and consumer expectations, continuously evolve finding new partnerships.
# 4. Moneymaking is geared for huge cash generation, not earnings per share, and the new law of increasing returns.
# 5. People culture and work design form a social engine that drive innovation and execution personalized for each customer.
Most digital companies operate with as few as three or four organizational layers. The digital companies recognize that structure goes lonely so far and that success ultimately depends upon the quality of its people. Technology plays a key role in giving people greater freedom to do their work. Technology makes real time data transparent, but still the organization depends upon people to knit the pieces together on a daily basis. Decision-making is designed for innovation & speed.
# 6. Their leaders drive learning, reinvention and execution.
Leaders continuously learn, imagine and breakthrough obstacles to create the change that other companies must contend with.
Creating competitive advantage is different in the digital age. In the digital age. Competitive advantage is the ability to win the ultimate price the consumer preferences, repeatedly through continuous innovation on behalf of the consumer to create immense value for shareholders. Core competencies have a self-life. They become obsolete and new ones have to be built. Today due to information availability in abundance, the consumer takes the call.
Roadblocks to moving into Digital
1. An overreliance to outdated theories
2. A dominant psychology of incrementalism and short term thinking
3. A blind spot when it comes to customers
4. Acceptance of existing boundaries
5. Belief in mass markets and segmentations
New Rules of Competition
# 1. A personalized consumer experience is key for exponentiation growth.
The digital companies imagine a 100X market space that does not yet exist. Digital giant’s relentlessly focus on consumer’s total experience end and work backwardly. They operate with the mind-set of Market of One – M=1, is the ultimate personalization. Technology is important, but the ultimate focus is on the consumer. Mapping the customer journey is emerging as distinct expertise. It involves breaking apart all of the interactions and decisions steps a consumer goes through from first exposure to an idea or recognition of a need through to what happens after the person makes a purchase. Leaders in the digital age takes on a stiffer but more exhilarating challenge.
# 2. Algorithms and Data are essential weapons
The digital platforms are built using algorithms and data that collects and analyses various customer experiences and behaviors. Each algorithm is a simpler sequence of steps for solving a problem. The ability to personalize an end-to-end consumer experience creates market space of 100x. A digital platform is also key to exponential growth. Standardization of data will eliminate lot fo the waste in record keeping and combined with algorithms can detect fraudulent billings Technology, logistics/ distribution and customer experience are the key pillars for digital growth.
#3. A company does not compete, its ecosystem does.
The ecosystem accelerates the growth. In digital age, competitive advantage goes to those who build ecosystem or network that leverages digital technology for the benefits of the consumers and paves the way to multiple streams of revenue. Ecosystem are never permanent, because the work is moving at such a ferocious speed, technology changes continue to accelerate and consumer expectations, continuously evolve finding new partnerships.
# 4. Moneymaking is geared for huge cash generation, not earnings per share, and the new law of increasing returns.
# 5. People culture and work design form a social engine that drive innovation and execution personalized for each customer.
Most digital companies operate with as few as three or four organizational layers. The digital companies recognize that structure goes lonely so far and that success ultimately depends upon the quality of its people. Technology plays a key role in giving people greater freedom to do their work. Technology makes real time data transparent, but still the organization depends upon people to knit the pieces together on a daily basis. Decision-making is designed for innovation & speed.
# 6. Their leaders drive learning, reinvention and execution.
Leaders continuously learn, imagine and breakthrough obstacles to create the change that other companies must contend with.
July 28, 2021
This was a quick and interesting read where Dr. Charan boils down his perspective into "6 New Rules of Competition" that the book is built upon. While it should be no surprise he discusses technology firms such as Google, Apple, Amazon and Alibaba, with Netflix studied extensively, I found his discussion of Walmart and Fidelity Investments more compelling. As Walmart experimented with finding the right combination between digital and its physical stores as the best way to deliver for customers, Walmart acquired Jet.com in order to leverage its digital platform to compete with Amazon. The story of Fidelity's digital transformation appears prominently across chapter called "Teams Instead of Organizational Layers" where it moved several thousand staff from functional silos to integrated teams. Dr. Charan has done well and been a valued advisor to numerous global companies, but I always associate him with his relationship with Jack Welch as a consultant to GE, but that company is noticeably absent from the list of companies he has worked with on the back flap.
October 10, 2021
This book exploring about how digital technology rewrites most of the rules notably business and social behaviour.
In addition to that, the author citing case studies like Amazon, Netflix, Ali Baba, Uber, B&B and so on about how the founders invite people to use their own possession to make money with them. For instance, in order to be a Uber driver, a driver must have his own car and must passed the standards set by Uber company. A business like this born purely out of digital era to be in operation in today's world.
Such business like Uber made the traditional Taxis to be irrelevant. However, in order to stay relevant in this day and age, the author even shared how legacy companies like Walmart can stay relevant and remain the people's choice.
There are so many nuggets of wisdom and consultation found in this book. If you are someone who is pursuing entrepreneurship or a business owner like myself, a book like this you shouldn't skip.
Thank you Pansing Distribution Pte Ltd for this review copy in exchange for my honest review.
In addition to that, the author citing case studies like Amazon, Netflix, Ali Baba, Uber, B&B and so on about how the founders invite people to use their own possession to make money with them. For instance, in order to be a Uber driver, a driver must have his own car and must passed the standards set by Uber company. A business like this born purely out of digital era to be in operation in today's world.
Such business like Uber made the traditional Taxis to be irrelevant. However, in order to stay relevant in this day and age, the author even shared how legacy companies like Walmart can stay relevant and remain the people's choice.
There are so many nuggets of wisdom and consultation found in this book. If you are someone who is pursuing entrepreneurship or a business owner like myself, a book like this you shouldn't skip.
Thank you Pansing Distribution Pte Ltd for this review copy in exchange for my honest review.
July 5, 2021
The fundamental premise of the book is that building a competitive edge in the digital era is different. In the digital era, competitive advantage is the capacity to consistently win the ultimate prize: the consumer’s preference. It may be won through constant innovation on behalf of the consumer while also creating enormous value for shareholders as claimed by the author. The book concludes, after studying digital behemoths such as Google, Apple, and Alibaba, that competitive advantage stems as much from what a company does as it does from what it has and how it recognizes the consumer’s experience, selects leaders, organizes work, and makes money, as well as its ecosystem and access to data and funding. While this book is primarily aimed at organizational leaders and business managers, anybody interested in learning about the competitive advantage of born-digital players may find it insightful.
July 6, 2020
Readers who want to know more how Netflix and other forward-thinking companies are able to pivot and take advantage of opportunities in an ever-changing landscape should read this book. Business rules seem to change so quickly and this one has its finger on that pulse.
Thanks to the publisher for the advance review copy access. *I’m a public librarian and I review for library purchase and I do not receive compensation for any review.
Thanks to the publisher for the advance review copy access. *I’m a public librarian and I review for library purchase and I do not receive compensation for any review.
August 12, 2021
After reading the entire book in almost one sitting, the author seems to be suggesting that the traditional companies with deep pockets that can adapt well to the way born digital companies compete, might succeed after all.
January 26, 2022
A good primer on how digital-first companies like Amazon, Baidu, etc operate.
However as someone looking to extract insights for a physical product company, I was not exactly satisfied. The examples are very generalized and often don't leave any insights for my kind of companies.
However as someone looking to extract insights for a physical product company, I was not exactly satisfied. The examples are very generalized and often don't leave any insights for my kind of companies.
February 26, 2025
Clear and simple book
Great book to understand how market leaders are creating competitive advantage. It is very easy to read and understand the differentiations that some companies are creating to achieve 10 or 100x growth.
Great book to understand how market leaders are creating competitive advantage. It is very easy to read and understand the differentiations that some companies are creating to achieve 10 or 100x growth.
Read
October 17, 2021Discusses the concept of digitize or die. The requirement of the CEO to lead digitizing from the front.
January 26, 2022
For next decade,
It’s Walmart taking over Amazon
& Apple’s foray in Health & HealtCare
It’s Walmart taking over Amazon
& Apple’s foray in Health & HealtCare
May 2, 2022
Pretty basic ideas. Utter waste of 5 hours.
June 4, 2022
Would probably be an ok read for someone who doesn't know anything about tech companies. Everyone else? Save your time, read only the 'rules' and if you so wish search for other resources online.
October 15, 2022
Perfect!
June 22, 2021
Very practical , and to the time data .
Displaying 1 - 19 of 19 reviews