The Support Economy: Why Corporations Are Failing Individuals and the Next Episode of Capitalism [Englisch] [Taschenbuch]

After a seductive tease in the introduction, the book spends the next 300 pages or so rehashing in a rather disjointed fashion a history of capitalism, with a little bit of social psychology and technology trends sprinkled in for good measure. This in and of itself is interesting reading, if the book was titled "A Primer on Capitalism." It is only in the last 50-75 pages that the authors get to the point. In all fairness: Yes I agree, people are burned out (I know I am), yes things DEFINITELY need to change, and the rich are getting richer, I'm all over that idea. However, the relationship economy has already been tried and failed. Ultimately, and especially lately, products with any "value-added" premium built into their prices, quickly become commodities, which means that people are not willing to PAY for that premium service. It is unlikely, in this case, that such a commoditized service, would not support the profit margins required for sustainability. Witness the demise of the stockbroker. Take another example: 9/11 aside, the major airlines simply have not been competitive with the discount carriers. Their bloated cost structure has come home to roost, as they tried to support "markets of one." I believe it is an accident of their size that they remain in business for the time being. The most disingenuous part of the book though is really the last 50-75 pages. It is pure speculation and points to no specific examples of research currently under development that even hints at these advances taking hold. IBM tried and failed to sell Internetworked refrigerators. Consumers basically said, I can figure when my milk has expired thank you. I don't need to pay someone to tell me to schedule a servicing of my HVAC, it's called a calender and a pen. I cannot tell you how badly I wanted to really believe that this was a new paradigm in the making. The time is ripe for a new way of thinking but this is not it. It seems that after all of that writing, the authors could only come up with a glorified "concierge" service as the answer to all of our troubles. My sense is that the answer lies in the development of a different kind of leadership among the executive class, and the creation and enforcement of rigorous international standards for business and human rights. The reality of capitalism is that it rewards self-interested behavior. Yet we want a society where everyone can share more of the pie. These ideas are currently incongruous. Until that incongruity is reconciled we a going to continue to repeat the mistakes of the past.

This is a book of two parts. The first is a detailed examination of why managerial capitalism has reached the end of its useful life. Zuboff and Maxmin say that because the system is out of date it cannot serve the needs of todays consumers. They also say that its inward focus results in scandals like Enron because managers think the comany is there to serve their needs, Managers are at the center of the system and value is inside the company. All of this was ok for making things but failed to deliver good service because it was not designed to do this. It used technology to reduce cost and depressed the impact of the internet. The net result is that we as consumers have changed, management has not and we suffer. WE seek help and only get a bloody nose.. The second part of the book follows the logic of the demise the managemet system Here value goes outside the company and rests with individuals ( it is distributed) To achieve alignment everything else ( control systems, ownership etc ) becomes distribed and wealth is realised by allowing people to live life on their own terms- by providing them with ' deep support" Here the techological and organisational vision is revolutionary. You need to forget all you have learned and think about capitalism from the ground up. The authors envision using digital platforms to provide common data and service. They suggest this will take 30% plus out of todays cost. These platforms will be base for new services and levels of support ranging from the fully automated to the personal. Here are advocates who navigate the world on your behalf. This is a whole new function ... they provide the ultimate range of support . They represent federations whose sole purpose is to provide different levels of support leveraging off the digital platforms. Federations obtain products and servcie from enterprises which come together and break apart .The whole concept is unique and extremely challenging. The idea is to create debate not to be perscriptive. The story of the family used to illustrate the metaprinciples of distributed capitalism is great. It makes you understand how different things can be and need to be. Zuboof and Maxmin have convinced me not only that change is necessary and inevitable but there is a new future to write. Some people may dismiss their ideas as too radical but look at their track records- they know what they are talking about. The world needs more creative and visionary thinkers like this-people who are not affraid to embrace the future and challenge the status quo-- we should all applaud them

The Support Economy sets out in the clearest possible detail why the existing form of capitalism has reached its adaptive limits and what the new form will be. As an economist I could be critical of some of the details that Zuboff and Maxmin layout. That would only devalue the masterpiece that they have written. The sheer intelligence behind this is enough to humble most people- but this is supported by scholarship and a deep and practical experience of how business and companies work. This makes the arguments relatively simple to follow. But you then get their desciption of the ' new ' enterprise logic and the nature of distributed capitalism and you truly have to think in different ways. Your imagination is put to the test. This is no different however that the leaps in thought that went with Henry Ford. The move from transaction to relationship economics has been discussed by many people but Zuboff and Maxmin give credence to the argument and ground it in a new reality. I can only imagine the arguments and discussion that went on to develop these ideas. When an academic and a busisness person of this achievement get togther the output is normally second rate . In this case it is truly extraordinary. The book will become a land mark for a new generation of management and social thought. It is rich in ideas and a points the way to new and hopefully less stressful future. The future they paint is not as unrealistic as some may argue, I think they have only touched the suface. We should all be thankful however that there are people like this who dare to think new thoughts and have the courage of their convictions to put them into print.