Fission: Corporate Strategy in the Context of a New Economic Wave

Author: Philip Evans & Thomas Wurster
Publisher:
Publish Date: 2001-01-01
Features: The rapid development of the Internet has brought significant changes and unlimited opportunities to the traditional economy, serving as a bridge between the traditional economy and the modern economy, also known as the new economy. The new economy does not yet have a unified definition, but broadly includes industries that manufacture network hardware and software, companies operating in the network, such as ISPs and ICPs, as well as new forms that arise from the integration of traditional industries and the internet. The key is not to define the new economy but to observe, recognize, and analyze these new economic phenomena promptly, thereby seizing opportunities and encouraging people in different fields to adapt to the new economy. The development of the Internet has drastically reduced the costs of collecting, publishing, transmitting, and using information, bridging the gap between people and information, allowing small, medium, and large businesses, as well as individuals, to enjoy equal opportunities. This has fundamentally transformed original information channels, leading people to consciously adopt the shortest path of information dissemination. Similar to the "principle of least action" in physics—like light choosing the shortest path. The profound impact of the internet industry has led to the disintegration of some traditional enterprises while also triggering restructuring among different companies. This reminds people of the early 20th century when nuclear fission was discovered: initially, neutrons were used to strike a uranium nucleus to produce a super-heavy element. However, with different isotopes of uranium, different results emerged—sometimes creating new super-heavy elements, but more often shattering the uranium atom into new fragments (new elements). At first, people found it difficult to understand this physical phenomenon. Fortunately, Einstein had already proposed the "mass-energy equivalence formula," and with his theory, not only was the fission phenomenon thoroughly explained, but it also led to deeper research into nuclear fission and fusion. The new economic phenomena caused by highly developed information are referred to as "new economics." The depth of this discipline is yet to be determined as people continue to accumulate knowledge, much like the explanations for nuclear fission and fusion, which required the emergence of a "principle of network and new economy" to be fully understood. Of course, we cannot expect social sciences to have precise formulas like physics, but new theories indeed need to emerge. The disintegration of traditional enterprises is not necessarily bad; it brings about the restructuring of the economic structure. A young netizen jokingly said, "The bolder a person is, the greater the output of the internet." Although this is a joke, many people are willing to believe it. If you are interested and have the energy, collecting 100 reviews on the internet economy in a day is no big deal, but it may leave you overwhelmed and unsure, perhaps unintentionally drowned in an ocean of information. Some people also start "internet actions" without taking the time to deeply understand the true meaning of information and the internet. They not only associate many issues with the internet but also rush to become internet investors, seemingly believing that "touching the internet guarantees success." They think that with the internet's halo, wealth will pour in. Yet, the true meaning of the internet lies in its integration with traditional industries. Without the bark, how can the hair survive? While we cannot completely view the internet industry as "hair," without traditional industries, the internet's role in creating a new economy would cease to exist. Through the phenomenon of the internet economy, it is crucial to its inherent essence and laws. Philip Evans and Thomas Wurster's book, "Fission: Corporate Strategy in the Age of the New Economy," is a book with profound insights. It not only explains many new concepts like "information economy and real economy" and "the richness of information and audience volume" but also analyzes the collision and integration between traditional industries and the internet economy, outlining the future prospects of the new economy... A good book will naturally catch the eye of publishers. Shanghai Far East Publishing House and China International Press and Media Group both recognized this book, proving that their views aligned. This book was jointly published by the two publishers. I believe it will be useful for corporate leaders, those concerned with and involved in the development of the internet, as well as those who keenly observe the stock market. The author has a meaningful statement: "In the internet era, everything is a sprint." As China prepares to enter the WTO, we must ponder: On the long race track of the WTO, how can the Chinese effectively balance sprinting and endurance, not only running fast but also maintaining stamina. This is an excellent book on corporate strategy, for which Director Zhao Qizheng of the State Council Information Office wrote the preface, and Li Zechi, the "little overlord" of Hong Kong, wrote the afterword, praising, "This book presents a clear and broad perspective on the continuous impact of the internet on all aspects of the business world. It has deeply influenced my ideology and career development. It represents a new model of the global economy, which is particularly important for my development in China." Both authors of this book are senior business consultants at Boston Consulting Group (BCG). The content of this book is a groundbreaking discussion based on their award-winning paper, "Strategy and the New Information Economy," first published in Harvard Business Review. It clarifies the fundamental changes in corporate competition under the new economy, providing practical operational guidelines, helping you build a new strategic mindset, and maximizing the use of new forces to shape competitive advantages.