A second business model takes an equally contrarian approach to production. John Hagel and John Seely Brown, who run Deloitte's Centre for Edge Innovation, argue that Western companies have spent the past century perfecting "push" models of production that allocate resources to areas of expected demand. But in emerging markets, particularly those where the Chinese have a strong influence, a very different "pull" model often prevails, designed to help companies mobilise resources when the need arises. Hong Kong's Li & Fung or China's Chingquing Lifan Group can use their huge supply chains to produce fashion items or motorcycles in response to demand. Taiwan's Quanta and Compel can produce cheap computers and digital cameras for a fashion-conscious digital marketplace.
These pull models fundamentally change the nature of companies. Instead of fixed armies looking for opportunities, firms become loose networks that are forever reconfiguring themselves in response to a rapidly shifting landscape. Such models are not peculiar to emerging markets: Dell builds computers to its Western customers' specifications, and Western management gurus have been advocating networks for decades. But according to Messrs Hagel and Seely Brown they are far more widespread in emerging countries.
April 2010 Archives
What can extreme surfing and World of Warcraft teach the enterprise? Independent Co-Chairman of the Deloitte Center for the Edge and former Xerox PARC Chief Scientist John Seely Brown holds them as examples of the power of frequent benchmarking and full industry info-share. He also uses them to show how the core ecosystem can be made stronger by sharing knowledge gathered from learning on the edge. In addition, Seely Brown touches upon his theory of a monumental economic shift from a push to a pull economy as outlaid in his 2010 book, The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion.
More info >>
Today, our latest book--The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion sees the light of day. Thanks to my co-authors JSB and Lang Davison!
NOTE: RealPlayer plug-in is required.
Co-Chairman, Deloitte Center for the Edge and
Co-Author, The Power of Pull
Tuesday, April 13
Wells Fargo Room
EDGE PARTY-NYC 2010
WHEN: Monday April 12th, 2010
LOCATION: The Slate, in the east Chelsea/west Flatiron area of Manhattan
(54 West 21st Street, NYC 10010)
TIME: 10pm to 1am
ADMISSION is FREE >> [RSVP by email]
We're throwing an "Edge Party" in New York to celebrate the publication of our new book, The Power of Pull by JSB, John Hagel and Lang Davison. It's going to be a very casual event - an opportunity to re-connect with old friends and connect with new ones. There'll be surfing videos, music, drinks and great conversation among a really interesting group of people - edgerati, we call them. We hope to see you there. Feel free to bring your friends.
If you are planning to come, please RSVP by emailing firstname.lastname@example.org [tell us your name and the number of guests in your party].