Can you not be compelled by a visionary author who opens this edition of his book with a review of the first edition, written in 1987! The 20-page new introduction and review is one of the most fascinating parts of the book. In a fairly modest way, not self-serving, Davis shows how most of his ideas have come to pass. Some are in still in development, and a couple of previous case studies have since flopped eg Sears one-stop-shop. But overall I thought it was a remarkable performance, and a key source of credibility for the book and the author. How many other business writers have put themselves to this same public test - not many that I know of, with the exception of Peter Drucker.
In 1987 Davis introduced concepts such as competing on speed, and mass customization. Today we accept that time has become intrinsic to business logic, and mass customization is now developing its own mass following. In this new edition he sticks with the powerful thinking tool he proposed earlier, namely that time, space and mass are fundamental dimensions of business. It is through exploring the extremes of this framework that new services and business models have eventuated. Davis shows us how to use that rather esoteric framework to help re-think our business. And I think very successfully, although it seems hard to grasp at first glance.
For example, we all take for granted the shrinkage of mass - miniaturisation. The thesis is that all core products will shrink, and the intangible component must grow for a business to remain sustainable. So we must extend our minds to take on the challenge of defining the knowledge-value in a mortgage or a pair of socks. The redistribution of product "space" will dramatically alter industries such as health care and education. Witness the advent of on-line training programs for computer skills, which can now result in Microsoft certified staff. Employees do these programs at work while doing their current jobs. And Microsoft's Encarta Learning Centre is another redistribution of educational product space.
Of course there are other books that cover the same ground as above. But this one is the seminal work, from a fundamental mental model. It has stood the test of a decade and is still completely current. And it has more - "organisations run by marketplace economics", "the misconception of having internal customers", "the business is not the organisation", "successful strategy self-destructs" etc.
I must comment on the one glaring anomaly that stands out in reviewing progress over the ten years from the first edition. It is the lack of progress in developing and implementing new organisations, and new ways of working together. This lack of change is astounding to me in the context of the other change that is framed by the book. As Davis remarks in his new preface "the organisational precepts are yet to come". For that reason alone I would recommend this book to every business leader.
