Netanium - Marketing Innovation

Wednesday, April 19, 2006

Book Recommendations: Strategy, and Linux

I've recently read two excellent books and wanted to pass along my recommendations. The first is "Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant" by W. Chan Kim and Renee Mauborgne (Harvard Business School Press, 2005). The authors propose an analogy of "oceans" for markets -- one is red (stained by the bloodletting in fierce competition) and the other blue (serene and uncharted). The central premise is that most markets (PCs, table wine, airlines, etc.) naturally converge and companies compete on the same set of factors. In their words, the "structural conditions are given and firms [are] required to compete within them." The same levers of competition are available to and exercised by all players, and the result is basically a zero-sum game: One company's growth must come at another company's expense. (This is not strictly true in markets where the overall market size is growing, but the point is that most markets stop such growth at some point, and this "red ocean" model takes hold.) Firms are forced to either differentiate (thus commanding a price premium) or pursue low cost (thus forgoing differentiation). Blue oceans are formed by creating new value for new customers, and simultaneously pursuing low cost and differentiation. This is done largely by looking at non-customers, examining why they don't buy, and creating new levers of competition to reach them. Again, from the book, "value innovation is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players." They go on to give a set of tools and examples. It is easy to read and follow; offers compelling insights; and I have added these to my strategy toolkit. Powerful stuff. The second book is "Windows to Linux Business Desktop Migration" by Mark R. Hinkle (Charles River Media, 2006). I've been an avid follower and user of Linux as a desktop operating system for about four years now, and think that the level of maturity of Linux -- and particularly the key business applications like browsers, email, and office productivity -- make it a compelling option for business use. Mark has put together an excellent guide for the manager looking to either implement or even just experiment with a pilot. The business logic is sound, and the descriptions of how to get up and running -- and then become productive -- are well done. (I should note that Mark is a friend of mine, and has helped me immeasurably get the most out of my Linux desktops, so I can personally recommend the advice in this book.) Linux can be a daunting change for people used to the Windows environment, and Mark's book brings the good, the bad, and the ugly to light. Perhaps most importantly, the book includes a copy of Knoppix, a version of Linux and a collection of applications that can be run from a CD without installing anything. That's a great way to work with the content in the book and get a firsthand look at the polish and function of Linux applications. I continue to refer to this work as I use Linux (currently Ubuntu 5.10), and highly recommend it. (NOTE: this book, teamed with Maria Winslow's "The Practical Manager's Guide to Open Source" (Open Source Migrations, 2004), would make a great start for a core library of books on free and open source software.)

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