Review: Blue Ocean Strategy–How to Create Uncontested Market Space and Make Competition Irrelevant

5 Star, Best Practices in Management, Strategy

Blue OceanMisses Long-Term, Green, and Bottom of Pyramid, Superb Otherwise

June 22, 2007

W. Chan Kim

I am not deducting one star for the gaps listed above, because on balance the book is one of a handful of business books that is serious as opposed to the pap that one generally sees.

There are other in-depth reviews, so I will summarize only what mattered to me. The bottom line here is create new markets and woo new customers, rather than compete. With this in mind, I am stunned that they do not examine more carefully C.K. Prahalad's wisdom as communicated in The Fortune at the Bottom of the Pyramid. He teaches us that capitalism (never mind the immoral predatory part) focuses on the billion at the top who can afford new sub-zero refrigerators and disposable goods. He teaches us that unlike this group, worth one trillion a year, the five billion at the bottom of the pyramid represent four trillion a year, but their refrigerator needs are different: for $2, an African “refrigerator” is two ceramic vases with broad bases and necks, one inside the other. Buried in the ground, they keep meat fresh for five days.

Their key principles:

1) Reconstruct/cross market boundaries

2) Focus on big picture not numbers

3) Reach beyond existing (and I would add, illiterate) demand

4) Get the strategic sequence right

The heart of their book is “first to market” and “create new markets.”

They address three customer groups for study:

1) Soon to be customers (e.g. young, international)

2) Refusing customers

3) Non-customers for whom new attractive value can be created

I especially like the discussion, two thirds of the way through the book, on six blocks to buyers utility:

1) Customer Productivity

2) Simplicity

3) Convenience

4) Risk (reduction)

5) Fun and image

6) Environmental friendliness (a scant mention).

This is a seriously useful book, a fast read, and worthy of note. The books below will provide additional context and insight as we all begin to demand an end to corporate “personality” and a restoration of public ownership and public accountability and utility.

The Corporation
Manufacture of Evil: Ethics, Evolution, and the Industrial System
The Soul of Capitalism: Opening Paths to a Moral Economy
Confessions of an Economic Hit Man
The Global Class War: How America's Bipartisan Elite Lost Our Future – and What It Will Take to Win It Back
The Politics of Fortune: A New Agenda For Business [[ASIN:0865475873 Cradle to Cradle: Remaking the Way We Make ThingsLeaders]]
Natural Capitalism: Creating the Next Industrial Revolution
Capitalism 3.0: A Guide to Reclaiming the Commons (Bk Currents)
Ecological Economics: Principles And Applications

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Review: Unintended Consequences–The United States at War

4 Star, Politics, Strategy, War & Face of Battle

UnintendedStrong Buy, Simplistic but Focused,

May 20, 2007

Kenneth J. Hagan

I think enough of this book by Hagan and Bickerton, both, significantly, respected professors in the US military war college system, to recommend it very strongly. It is simplistic, but in combination with the books I list below, it is quite striking.

Key points:

1. Wars have consequences, not only in the defeated region, but within the USA where the national and regional cultures (Nine Nations) can be conflicted.

2. War *alters* policy for all future generations.

3. America's wars have been engines of economic growth, but the authors fail to observe that the rich benefit while the poor die.

4. The post-war period is a continuation of the war and cannot be ignored. Both explicitly and implicitly, they crucify Cheney, Rumsfeld, Wolfowitz, and Feith.

5. In every single case, the outcome of the war has been “far removed” from the stated objectives.

6. Each war brings with it repressive measures against those who dissent. I am reminded of Valley Girl Condi Rice suggesting that General Tony Zinni was a “traitor” for saying the idea of invading Iraq was idiocy. How now, cow?

7. War tends to loosen the bonds of traditional authority and undermine community.

8. Across our history, not just at our inception, Native Americans have lost big. Genocide was not only perpetuated in the wars of independence, but after the Civil War, when the US Army practices scorched earth war.

9. The most importance consequence of the war of 1812 was it total lack of achievement of ANY of its goals, together with an accentuation of sectional differences within the USA.

10. On page 47: “Enhanced chauvinism, ambitious jingoism, and patriotism [per Samuel Johnson, the last refuge of the scoundrel] were unintended consequences of the war. The slave trade continued.

11. The Indian Wars were deliberately genocidal.

12. In general, in its first hundred years, the USA was a belligerent against Canada, Mexico, and the Indian Nations.

13. The war on Mexico caused long-term host8ility and led to the civil war by aggravating differences between North and South (and one might add, Texas as the largest ego in the West). The war on Mexico was mostly fought and led by the South.

14. The Civil War was America's first ideological war.

15. The Emancipation Proclamation applied only to slaves in hostile states, not to Northern states.

16. Civil War extended the power of the Federal Government, which increasingly sold the American people out to special interests including European banks.

17. The authors provide a *fascinating* description of Abraham Lincoln's unprecedented abuse of presidential powers, including the suspension of habeas corpus, and I can now understand why “W” thinks he is following greatness by turning America into a police state.

18. Civil War introduced total annihilation (scorched earth) as an American “war of war.”

19. Spanish-American-Cuban-Filipino war is, in the author's view, most similar to the Iraq war in terms of the mendacity preceding and the insurrections following.

20. WWI, WWII, and the Cold War are discussed in terms that show the US to have been the more belligerent. Stalin learned not to trust the US, and this led to the ideological stand-off and the emergency of “fantasy war.”

21. In Korea, General McArthur exceeded his authority, the Chinese warned the US via an Indian who was blown off, and the game was on.

22. The US concurrence in the restoration of the French in Indochina (now Viet-Nam), and the conflicts that Johnson had in having to support being a hawk on Viet-Nam in order to have his “Great Society,” are covered.

23. The authors are *brutal* on the Bush Family, to the point that one is inspired to think of a lunatic asylum as the natural resting place for the whole lot of them.

24. According to the authors, Iraq is a “phony war” in every sense of the word except the casualties.

25. Iran is not in the index but the authors observe that US pressure on Syria to withdraw from Lebanon opened the door for Iran.

Bottom line: going to war does not solve problems, it creates more of them. The authors conclude that war is both folly and futile. I agree.

All Americans have a choice in 2008: they can continue business as usual, with the corrupt and inept Republican and Democratic “machines” that are “running on empty” and totally beholden to Wall Street, or Americans can reassert the fact that this is a Republic and the government as a whole can be fired for cause. See the books listed below. May God have mercy on our souls. It's time we started living up to our sacred responsibility as citizen-warriors, as Minutemen.

The authors lose one star to simplicty and an avoidance of both the intelligence availabale but ignored, and lack of couinter-vailing forces (e.g. Congress and the media inevitably fall for the Executive deceptions).

American Fascists: The Christian Right and the War On America
The Nine Nations of North America
None So Blind: A Personal Account of the Intelligence Failure in Vietnam
Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It
The Sorrows of Empire: Militarism, Secrecy, and the End of the Republic (The American Empire Project)
The American Way of War: A History of United States Military Strategy and Policy
The Fifty-Year Wound: How America's Cold War Victory Has Shaped Our World
The Unconquerable World: Power, Nonviolence, and the Will of the People
War Is a Racket: The Anti-War Classic by America's Most Decorated General, Two Other Anti=Interventionist Tracts, and Photographs from the Horror of It
Who the Hell Are We Fighting?: The Story of Sam Adams and the Vietnam Intelligence Wars

Review: Second Chance–Three Presidents and the Crisis of American Superpower

4 Star, Power (Pathologies & Utilization), Strategy

Second ChanceErudite, State-Centric, Useful Observations in Isolation,

April 1, 2007

Zbigniew Brzezinski

Edit of 30 Mar 08 to add links.

I struggled with this book. In the context of all the other books I have read, I was hoping for something a big more fullsome and balanced. This is an erudite state-centric report card on three President's that only a Washington insider would write, and and that most who are not Washington insiders will find daunting.

It is an essay without references. It is also a partisan work, one that recognizes the American political, economic, and social frameworks are broken, but one that assumes the Democrats will have a second chance in the aftermath of the atrocities and high crimes and misdemanors characteristic of the Bush-Cheney regime. In my view, the only thing worse for America than imperial Republicans is inept Democrats. The party “machines” have got to go. (Cf. Running On Empty: How The Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It; The Broken Branch: How Congress Is Failing America and How to Get It Back on Track (Institutions of American Democracy); and Breach of Trust: How Washington Turns Outsiders Into Insiders.

The book ends with a proposition for a joint legislative-executive global policy planning council, with a shared common staff. This is a variation of the strategic body General Tony Zinni discusses in his most recent book, The Battle for Peace: A Frontline Vision of America's Power and Purpose.

I put the book down feeling empty–indeed–with some dispair. Is this all there is? No big ideas such as the restoration of the US Information Agency and the creation of an Open Source Agency as called for on page 413 of the 9-11 Commission. No mention of a miniscule tax on every Federal Reserve transactiion, allowing the elimination of all individual income taxes. No mention of the 5 billion at the bottom of the pyramid, of the ten high-level threats, twelve policies, and eight other major players. No mention at all of the military-industrial complex and the heavy metal military that Presidents from both parties have been all too willing to go along with. No mention of the two trillion a year illicit economy (in the context of a 7-9 trillion total global economy), see Illicit: How Smugglers, Traffickers, and Copycats are Hijacking the Global Economy.

No mention of the fact that it was this author who gave the Pakistani's a bye on their nuclear plans, or the direct connection between Iranian funding of the Pakistani program, and their probable possession of a nuclear tipped Russian Sunburn missile (carrier killer, zig-zags at 2.2 Mach).

America needs a transpartisan government that ends the winner take all approach to leadership, and that starts with a balanced sustainable budget. The Comptroller General has declared the USA to be insolvent. It's going to take a lot more than high-sounding platitudes to get America back on track. There are 27 secessionist movements, Vermont's being the most powerful, for good reason: it is time to dissolve this government, and the two political “gangs” that share the spoils that are not theirs to give, in order to restore the Republic of, by, and for the people. The image I have loaded gives a sense of what I was hoping to see. Joe Nye comes closer with his Soft Power ideas. World War III is about two things: unleashing the innovative energy of the five billion in extreme poverty, and spreading the gospel of tolerance and diversity. Both demand $3 billion a year for a massive global free online educational network in all languages, accessible via low-cost cell phones.

If America gets a second chance, it will be from the bottom up. The existing political enterprise is worse than dead, it is a rotting carcass that needs to be burned. Brzezinski addresses the superficial outcomes of a grotesqley flawed and out-dated system (Kissinger did well on this in Does America Need a Foreign Policy? : Toward a Diplomacy for the 21st Century but then he's also done it wrong, see The Trial of Henry Kissinger. America and the world are too complicated to be run by one white man and his cronies, all controlled by corporations that internalize profit and externalize social cost. If we do not focus on a revolution in the minds and hearts of all humanity, neither our diplomats nor our warriors will be able to stop the immolation of the planet.

See also:
The Second World: Empires and Influence in the New Global Order
The leadership of civilization building: Administrative and civilization theory, symbolic dialogue, and citizen skills for the 21st century
How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition

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Review: Strategic Intelligence [Five Volumes] (Intelligence and the Quest for Security) (v. 1-5)

5 Star, Intelligence (Government/Secret), Strategy

Strategic IntelligenceBeyond Five Stars for Content, Zero for Unjustified Pricing,

March 28, 2007

Loch K. Johnson

I am the author of the chapter in volume 2, “Open Source Intelligence,” which is freely available as a pdf at OSS.Net forward slash OSINT-S.

Neither Dr. Johnson, the editor and the deal of the intelligence scholar-practioners, nor any of the other authors, ever suspected that the publishers would dishonor our work, virtually for free (we each received $300 and a set of the books).

As a professional, I can certify that this set is spectacularly valuable. It is the best of the best at a time when the USA is wasting $60 billion dollars a year on secret sources and methods that yield only 4% of any policy-makers “relevant” decision-support.

As a publisher, I can start with certainty that it cost the publisher roughly a penny a page to print this book. This set of five books should under no circumstances cost more than $250.

Amazon holds the key, but Jeff Bezos has blown me off. Despite the fact that 300 of his people were inspired by my lecture on Amazon as the World Brain, he is choosing to ignore the desperate need of libraries, scholars, and practioners everywhere for a new form of micro-cash for micro-text digital exchange.

I personally believe that micro-text, like DVDs did for the movie industry, with double the gross revenue of the publishing industry without increasing the cost. What we need is for all the libraries to get together and go on strike–no purchases of a single book–until the publishing industry demands that Amazon host a summit, where I would be glad to lay out the plan personally. If you visit The Transitioner's GLobal Challenges page, you can access by briefings and videos speaking to Amazon, to Hackers, and to Bloggers (Gnomedex).

The publishing industry is about to get eaten by Google, at the same time that Google is demanding ownership of anything it digitizes. Wrong answer. Kudos to the Boston libraries for throwing Google out of town. Amazon and micro-cash are the answer, as well as an increase in publishing efficiency and a clear open statement of actual costs of production.

This five book series represents the very best of the industry (valuable content) and also the very worst (seriously unethical pricing).

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Review: World Population and Human Values–A New Reality

5 Star, Environment (Problems), Environment (Solutions), Strategy, Values, Ethics, Sustainable Evolution

AA Book CoverA Classic from the Originator of “Epoch B”,

March 2, 2007

Jonas Salk

I sought this book out used because it was recommended to me by a very smart person thinking about the decline of governments and the rise of the corporation.

Salk was the originator of the concept of “Epoch B” leadership, in which the emphasis shifts from things to thoughts.

Since it is no longer readily available, I will highlight the three charts that conclude the book:

1) A ladder with feedback loops with the following circles stacked above one another: Ecology, Society, Individual, Physiology, Molecular Biology.

2) Epoch B characteristics: Values and Behavior in Equilibrium instead of Growth & Expansion; Technology balancing between Agricultural and Future Industrial (True Cost/Natural Capitalism); Environmental Carrying Capacity Stable and Declining rather than Increasing; and Low Growth Raates instead of High.

3) Finally, in triangles within a circle, we have the Exnvironmental Opportunities and Limitations articulated through the Social, Policial, and Ecnomic sides of the largest triangle. Within that triangle, we have Education, Religion, and Socioeconomic Conditions as the factors impacting on the individual. The intermediate triangle has Behavior, Attitudes, and Values surrounding the smallest triangle, which is labeled Bio-Evolution.

The bottom line on this book, as with Will and Ariel Durant's “Lessons of History,” is that the endgame is about morality, legitimacy, reconcilation, and balance.

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Review: Innovation Happens Elsewhere–Open Source as Business Strategy

5 Star, Best Practices in Management, Change & Innovation, Information Technology, Strategy

Innovation HappensGuide to the Value Created by Free/Open Source Software,

January 27, 2007

Ron Goldman

This is not the book I was expecting, but that's my fault. I was expecting something beyond “The Innovator's Dilemma” focused on management. What I ended up with was in fact much more useful, an elementary but essential and easy to read guide to Free/Open Source Software (F/OSS).

This book is a real gem, and for any manager thinking about how to explode out of their tired old proprietary software architecture, joins “Wikinomics” and “Infotopia” as essential reading.

This book is well-structured, comes with credible and extensive references and appendices, and also offers an online version for preview or later quick search at [ …w.]dreamsongs.com/IHE.

I'm still waiting for Sun and RedHat to create a skunkworks where we can quickly test-drive and adapt open source softwares addressing each of the 18 functionalities that the Central Intelligence Agency has known it needed since 1986 but still does not have precisely because the CIA is the anti-thesis of open source (see image I have added above).

Earth Intelligence Network is going to put CIA out of business–it will be based on open source software, and everyone will benefit. That is a good thing! The sub-title of this book is on target: it is a primer on open source as business strategy. To that I would add what I have recommended to the organizers of OSCON, that managers be very aware of the others opens: Open Source Intelligence (OSINT), Open Spectrum, Open Access, Open Culture, Open Innovation, Open Society, and Open Circle/Open Space. There are others emerging. Open is now a meme as well as a culture, and this book helps us to understand why that is and why that matters.

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Review: The Myth of Progress–Toward a Sustainable Future

Atlases & State of the World, Capitalism (Good & Bad), Complexity & Catastrophe, Complexity & Resilience, Disaster Relief, Economics, Science & Politics of Science, Strategy, Survival & Sustainment, Values, Ethics, Sustainable Evolution

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End of Immoral Capitalism, Rise of Sustainable Societies,

January 10, 2007
Tom Wessels
I pulled this book from my waiting stack after reviewing Vice: Dick Cheney and the Hijacking of the American Presidency While all that we do wrong is rooted in corrupt politics such as Dick Cheney represents so well, I wanted to get away from the personalities and focus on the underlying truths of the greatest challenge facing all of us, preserving the planet for future generations.

This thoughtful careful author from New Hampshire has created a really special book, small, readable, and packed with fact (superb footnotes). He gives all due credit to his predecessors in the field–Georgescu-Roegen, Meadows, Dalay, Hawken et al.

He brings out the nuances of complex systems and how our linear reductionist thinking, and our false assumption that technology will resolve our waste creation and earth consumption issues, combine to place all that we love at risk. I was personally surprised to learn that even if we fund 100 water desalination or decontamination plants, and resolve our shortfalls of clean water, that the energy required to do so would result in entropy and further losses.

The author brings up the need for better metrics (see my reviews of “Ecology of Commerce” and “Natural Capitalism” as well as my list on “True Cost” readings. He points out that the GDP does not reflect the non-cash economy or the degree of equality/inequality in the distribution of new wealth. I would add to that the importance of counting prisons and hospitals as negatives rather than positives.

A good portion of the book (a chapter for each) is spent discussion the three fundamentals: the limits to growth; the second law of thermodynamics (entropy); and the nuances of self-organization and what happens when you reduce diversity.

The author lists the attributes of complex systems as being emergent properties that arise from the interactions (i.e. the space between the objects); self-organization, nestedness, and bifurcation into either positive or negative consequences.

The bottom line for the first part of the book is that in complex systems, especially complex systems for which we have a very incomplete and imperfect understanding, “control” is a myth, just as “progress” is a myth if you are consuming your seed corn.

The author excels at a review of the literature and demonstrating the flaws of economic theories that are divorced from reality and the “true cost” of goods and services (e.g. a T-shirt holds 4000 liters of virtual water, a chesseburger 6.5 gallons of fuel).

I have reviewed a number of books on climate change, in this book the author makes the very important point that the annual cost of weather disasters has been steadily increasing, and is the annual hidden “tax” on our reductionist approach to clearing the earth, losing the forests and mashlands, and so on.

He points out that concealing or ignoring true cost does not make it any less true, it simply passes the cost on to future generations. In the same vein he is optemistic in that he believes that if we take positive action now, however small, the benefits of that action as the years scale out, will be enormous.

This is actually an upbeat book for two reasons: first, it makes it crystal clear that the classical economics that have allowed corporations to pilage the world, bribe dictators and other elites, and generally harvest profit at the expense of the commonwealth; and second, it ends on a note of hope, on the belief that we may be approaching a dramatic cultural shift that embraces reciprocal altruism, true cost calculations, equitable wealth distribution, and so on.

He cites other authors but gives very positive insights into public ownership (by stakeholders, not the government), essentially repealing the flawed court-awarded “personality” of corporations, and re-connecting every entity to its land-base and the people it serves. He recommends, and I am buying, David Korten's “Post-Corporate World.” By restoring the populace to the decision process, we stamp down the greed that can flourish in isolation.

The book ends hoping for a cultural shift from consumption to connection. I believe it is coming. Serious games/games for change, fed by real-world real-time content from public intelligence providers including the vast social networks from Wikipedia to MeetOn to the Moral Majority, could great a wonderfully distributed system of informed democratic governance that implements what I call “reality-based budgeting,” budgeting that is transparent, accountable, and balanced.

This is a much more important book than its size and length might suggest. It is beikng read by and was recommended to me by some heavy hitters in the strategic thinking realm, and I am disappointed at the lack of reviews thus far. This book merits broad reading and discussion.

See also:
A Power Governments Cannot Suppress
The Unconquerable World: Power, Nonviolence, and the Will of the People
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
Escaping the Matrix: How We the People can change the world
All Rise: Somebodies, Nobodies, and the Politics of Dignity (BK Currents)
Imagine: What America Could Be in the 21st Century
The Cultural Creatives: How 50 Million People Are Changing the World
The Average American: The Extraordinary Search for the Nation's Most Ordinary Citizen

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