Rethinking Competitive Advantage: New Rules for the Digital Age

According to this thin treatise from business adviser Charan (The High Potential Leader), the main takeaway from the success of today’s tech giants isn’t how they use data and algorithms but their policy of continuous innovation on behalf of the consumer. In discussing Google, Apple, and Alibaba, among others, he gives some thought to how readers can push their own companies—whether digital enthusiasts or skeptics—in the same direction. To that end, he suggests companies should follow six rules, all revolving around thinking big, being digital, and understanding and building on a viable and fast-growing commercial niche. Charan’s main example is Netflix, a company that drastically transformed itself to take advantage of the new opportunity presented by streaming, but he also discusses other major business moves, like Walmart’s purchase of Jet.com, and delves into how companies like Google shook up hiring practices in order to build top-flight workforces. Unfortunately, the advice is not particularly concrete and borders on offhanded—his suggestions to leaders on finding big ideas is to “discuss with your team” and “identify emerging trends that are likely to be sustained for the next... 10 years.” While the high-level view of successful companies is intriguing and inspiring, the generic advice is likely to be met with an if-it-were-only-so-easy eye roll. (Apr.)