Customer Reviews
How to prosper in the "N = 1 and R = G" world - By: Robert Morris, 02 May 2008 
I have read & then reviewed alll of C.K. Prahalad's previous books & thus was especiallly interested in reading this book, co-authored with M.S. Krishnan. As they explain in the Introduction, "We view innovation as shaping consumer expectations as well as responding continuallly to the changing demands, behaviors, & experiences pf consumers. We must do this by accessing the best talent & resources available anywhere in the world. These two ideas must be connected - the resources of many to satisfy the needs of one.. We suggest that this is possible only if we pay attention to the glue that enables ideas to be transformed into operations. We will focus on the business processes & analytics as the glue."
Prahalad & Krishnan acknowledge that there is a fundamental transformation now underway, worldwide, that will radicallly alter the very nature of an enterprise & how it creates value. This foundation of this transformation has two basic pillars:
1. "Value is based on unique, personalized experiences of consumers. [begin italics] The focus is on the centrality of the individual. [end italics] We will designate this pillar as N = 1 (one consumer at a time.)"
"2. No firm is big enough in scope & size to satisfy the experiences of one consumer at a time. [begin italics] The focus is on access to resources, not ownership of resources. [end italics] We will designate this [pillar as R = G (resources from multiple vendors & often from around the globe)."
There are several key elements of this transformation. Prahalad & Krishnan focus on five: Value is shifting from products to solutions to experience; alll companies seek access to the talent, components, products, & services they need from the best sources; flexible systems are a prerequisite & must be developed; resources in a company's ecosystem must be continuallly configured; & finallly, specific models must be developed that enable a company to focus on one consumer from among the millions. These are indeed formidable challlenges. Prahalad & Krishnan suggest a number of strategies & tactics to consider when responding to them. When proceeding through the rigorously & eloquent narrative of this book, it is imperative to keep in mind that their ultimate objective is to help companies to prosper in this "N = 1 & R = G" world. To that end, they share the most important business lessons learned from a number of exemplary companies that include Amazon.com, Apple Computer, eBay, Google, ICIC Bank, Tata Consultancy Services (TCS), Unilever, & United Parcel Service (UPS).
To me, some of the most valuable material is provided in Chapter 5 (Pages 109-145) as Prahalad & Krishnan discuss the requirements of an information & communication technology (ICT) architecture & the governance mechanisms that can connect business processes & analytics to data & applications. In one of several graphics, Table 4.1 (Pages 124-126), they summarize the specificati9ons of the new ICT architecture in terms of four categories (i.e. "buckets"): Confronting Reality (e.g. capacity to link large systems & multiple databases), Compliance & Change (e.g. regulatory compliance & change), Evolving Capabilities (e.g. Security & privacy of data), & Enabling Foundations (e.g. from transaction-driven to event-driven systems).
Given the fundamental shift in the focus, the sources, & the processes of innovation & value creation, what do suggest for an agenda for managers to consider? They respond to that question in the final chapter. Specificallly, they invoke a metaphor --- The New House of innovation - whose design & construction must be viewed as an "integrated package" in terms of its architecture, construction materials, & subsequent maintenance. The organizational transformation process must also be comprehensive & cohesive during a transition period (i.e. a "migration") of management practices to develop new skills, attitudes, & behaviors. It remains for decision-makers in each organization to design & then build its own new house pf innovation. Fortunately, they can use the information & counsel that C.K. Prahalad & M.S. Krishnan provide to guide & inform those initiatives.
Those who share my high regard for this brilliant volume are urged to check out Competing in a Flat World: Building Enterprises for a Borderless World co-authored by Victor Fung, William Fung, & Yoram (Jerry) Wind as well as Competing on Analytics: The New Science of Winning co-authored by Thomas Davenport & Jeanne Harris. Also Enterprise Architecture as Strategy: Creating a Foundation for Business Execution co-authored by Jeanne Ross, Peter Weill & David Robertson & Dean Spitzer's Transforming Performance Measurement: Rethinking the Way We Measure & Drive Organizational Success.
