The classic book on business strategy in the new networked economy— from the author of the New York Times bestseller The Inevitable
Forget supply and demand. Forget computers. The old rules are broken. Today, communication, not computation, drives change. We are rushing into a world where connectivity is everything, and where old business know-how means nothing. In this new economic order, success flows primarily from understanding networks, and networks have their own rules. In New Rules for the New Economy, Kelly presents ten fundamental principles of the connected economy that invert the traditional wisdom of the industrial world. Succinct and memorable, New Rules explains why these powerful laws are already hardwired into the new economy, and how they play out in all kinds of business—both low and high tech— all over the world. More than an overview of new economic principles, it prescribes clear and specific strategies for success in the network economy. For any worker, CEO, or middle manager, New Rules is the survival kit for the new economy.
The "new economy," posits Wired executive editor Kelly in his smart but confusing book, "has three distinguishing characteristics: It is global. It favors intangible things--ideas, information, and relationships. And it is intensely interlinked." Kelly uses this system of fluid networks to replace traditional linear models of business interrelationships. In one "rule," Kelly unexpectedly suggests that a company's goods become more valuable as their price moves closer "to free"; in another he urges companies to abandon the pursuit of proven successes. If these claims at first appear dubious, closer examination shows that they're not without credibility. In a network economy, he argues, selling technologies cheaply increases supply and spurs demand for valuable services that use these technologies. Relying on proven successes, Kelly says, discourages companies from developing new technologies--the linchpin of a rapidly changing network economy. Unfortunately, Kelly builds his case in a haphazard, often overheated way, complete with empty jargon like "re-intermediation." Even when offering the more concrete observation that a network economy means that customers--not vendors--often drive transactions, Kelly can't resist straying into a discussion of privacy on the Net. Perhaps the author intended his jumble to serve as a metaphor for the often overwhelming interconnectivity he describes, but readers will have a hard time working through the muddle and hype. B&w illustrations throughout. Author tour. FYI: Cornell/ILR's book of the same title on the changing demcgraphics of the American workforce was reviewed in the August 10 issue.