The period 2000--2002 will witness the single greatest change in global economic and business conditions ever-the realignment from traditional corporate structure to Internet-leveraged styles of brand-owning, customer-focused companies. This realignment is occurring now, even as you read these words. In MetaCapitalism: The E-Business Revolution and the Design of 21st-Century Companies and Markets, Grady Means and David Schneider-two of today's most influential and innovative global strategists-gather and make sense of the many changes the e-business revolution has fostered. Case histories and examples, from major corporations like Cisco Systems and major industries like the automobile industry, reveal how market leaders today are accelerating economic growth and value creation by capitalizing on the following: Global expansion of market access Better leverage of capital Significant advances in operating efficiency Improvements in the efficiency of capital markets Dramatic unleashing of human potential and capital It isn't a question of if your company will transform to an e-business model-it's a question of when. By 2002, virtually every major company in every sector will, by necessity, transform from a conventional to an e-business model. MetaCapitalism sets out the strategies and impacts of this fundamental change and introduces the new concepts that will become a natural part of the business lexicon in the near future. In this new era of outsourcing and diminishing physical capital base, how will companies be valued by the markets? Can "brand-owning" companies-as opposed to manufacturers-maintain sufficient controls and systems to guarantee that their network partners are well integrated with each other and the marketplace? How will "value-added communities"-both horizontal and vertical-support brand owners in dramatically reducing costs, increasing quality, and responding rapidly to customer demand and market shifts? MetaCapitalism answers all these questions and more, backed by the trusted experience and leadership-and market-driving innovation-that have always characterized the PricewaterhouseCoopers team. This thought-provoking book presents a template for success in the rapidly developing world of business-to-business e-business-a world which tomorrow's leaders must begin to understand and master today. Strategies to Realign-and Win-in Today's E-Business Battlefield Traditional global industrial powers-built on a base of tremendous physical capital and manufacturing strength-must today face a stunning reality: the fast, lean e-business world may pass them by. Today's business-to-business e-business revolution, in which companies increasingly rely on brand ownership as they outsource physical capital activities, requires a dramatically different business process model with entirely new definitions of business processes. MetaCapitalism: The E-Business Revolution and the Design of 21st-Century Companies and Markets is the first book to outline the adaptations and innovations required to thrive in the new world of e-business. Original in thought and powerful in argument, MetaCapitalism draws on the combined expertise of two leading business strategists and the unmatched resources of PricewaterhouseCoopers to define this fundamentally changed environment and explain how managers can and must move-and move quickly-to reformulate their companies for success. Tremendous knowledge, imagination, and insight-not to mention a small degree of faith-will be required to enter and succeed in this new world. Step inside MetaCapitalism: The E-Business Revolution and the Design of 21st-Century Companies and Markets to discover the fascinating and highly profitable rules, strategies, and practices of tomorrow's e-business-from the leaders who are writing the rulebook today.
In Opinion If the authors of the new book "MetaCapitalism" are correct, the world will undergo a business revolution before 2003. Companies will become more effective and efficient by decreasing their capital expenses and increasing the number of functions they outsource. And the value of the global market could increase tenfold, from $20 trillion this year to as high as $200 trillion within 10 years. Sounds pretty good, huh? Unfortunately, that growth isn't gratis. A company can't just utilize the Internet; it must immerse itself in it. Or as PricewaterhouseCoopers CEO James J. Schiro says in the book's foreword, "Companies must either adapt or perish." B-to-B the key Authors Grady Means and David Schneider,consultants for PricewaterhouseCoopers, present their case concisely, though the ever-present charts and graphs detract from the readability, which is average to begin with. But their message comes across. The companies who embraced the Net five years ago by anticipating the b-to-b concept lead their sectors. In light of this, it's no wonder that the authors express approval for companies like Cisco (CSCO) and Nortel (NT), which are well on their way to containing their businesses within the scope of the Internet. That is, they are reducing their capital expenses (such as factories, equipment and personnel) and increasing their presence and reliance on the Web. More surprisingly, traditionally capital-heavy companies like General Electric (GE), Honeywell International (HON) and Wal-Mart (WMT) have begun allocating available resources toward creating a larger Internet presence. The authors call this transformation away from a reliance on physical capital and toward more flexibility in the supply chain "MetaCapitalism." But Means and Schneider readily admit, "The more compatible the existing business model with the emerging b-to-b e-business model, the less the organization must change to succeed in the "New Economy". Read: If your competitors are far from conducting their companies entirely online, you might have more time than the strict two-year period offered by "MetaCapitalism." Playing catch up But the opposite is also true: In many industries, the laggards must now play an exhausting game of catch up. What must they do? The authors say: Utilize the Internet by outsourcing departments not directly related to the product (accounting, human resources, customer service) or by moving those departments online; create a single information system that ties together each division of the company with customers and suppliers; concentrate on establishing your brand; and stop relying on physical capital. And if you bathroom soap dispenser manufacturers think this book wasn't written for you, surprise. Means and Schneider say you better get in the game, too. Because once your competitors create a b-to-b division or exchange that tackles the supply chain and fills its orders faster, it's probably too late. However difficult it might be for a factory or retail store to alter the way it's been organized for 50 years or more, the companies who are really going to have a hard time meeting Means and Schneider's extreme schedule are the foreign manufacturing companies. According to the authors, the United States is well on its way to being prepared for "the e-commerce revolution," but Germany, Japan, China, Indonesia and Malaysia will have a difficult transition to the new model. In short, it will be much easier for the largest and most flexible of the b-to-b companies to dominate in the next several years. All others better start running. Candice McFarland is a copy editor at UpsideToday. If you would like to submit a letter to the editor regarding this story, email online@upside.com.