The Delta Project: Discovering New Sources of Profitability in a Networked Economy
- Book Review,
by Arnoldo C. Hax
From Publishers Weekly
MIT professor Hax and consultant Wilde aim to show how to squeeze more profits and greater efficiency out of an organization. Building off the work of Michael Porter, C.K. Prahalad and Gary Hamel, they argue that the best way to gain competitive advantage is to bond with customers rather than to beat out the opposition. While they sketch out useful approaches, most management theory readers will recognize their approach as only an incremental advance in conventional wisdom. Copyright 2001 Cahners Business Information, Inc.
From Booklist
Hax is a professor at MIT's Sloan School of Management and a consultant at Dean & Company, a strategy consulting and investing firm founded and headed by Wilde. From their work with clients, the pair has concluded that today's new forms of networks (digital, physical, and economic) have made existing frameworks for business strategy outmoded. Previous strategic models have focused on rivalry; the Delta model conceived by Hax and Wilde is based on bonding, as companies forge new relationships with customers, suppliers, competitors, substitutes, and complementors. The authors describe competition based upon product, customer, and system economics--the three distinct strategic options of the Delta model's "Triangle." They contrast these options with those afforded by earlier models and detail the eight ways for implementing them. They show how Motorola is using the Delta model as "the driving intellectual force behind [its] strategic repositioning," identify three separate "Adaptive Processes" for linking execution with strategy, and analyze the Internet industry using the Delta model. David Rouse
Copyright © American Library Association. All rights reserved
Niall FitzGerald, Chairman, Unilever PLC
The ability to build strategic clarity and define the practical business action shines through in The Delta Project.
Review
“There has never been a better time for rethinking how one does strategic thinking and fortunately we have Hax and Wilde to chart the way--to take us on a voyage of exploration.” —Lester Thurow, from Prologue, Sloan School of Management, MIT
“The ability to build strategic clarity and define the practical business action shines through in The Delta Project.” —Niall FitzGerald, Chairman, Unilever PLC
“The work by the authors in strategy development has been a 'must read' for me for many years and an invaluable resource to every organization I have been associated with... With the technology evolutions of the past five years, this new work has taken on more importance to ensure that a business strategy is relevant to the times.” —Hector Ruiz, President and CEO, Advanced Micro Devices
Book Description
Drawing from the authors' work with companies such as Coca-Cola, Motorola, 3M, General Motors, and Unilever, The Delta Project provides a unique model through which to develop strategy in the new economy. Arnoldo Hax and Dean Wilde examine how globalization, deregulation and the emergence of the internet infrastructure have changed the rules for success and identify three distinct strategic positions that can be used to realign the direction of your business. Introducing new models of "bonding", "complementors" and "customer lock-in" this book provides a fundamental shift in the way we think about competitive positioning.
About the Author
Arnoldo Haxis a professor at the Sloan School of Management at MIT. He has consulted for companies such as Merck, Saturn, and Motorola. He ives on Martha's Vineyard, Massachussets.
Dean Wildeis founder and Chairman of Dean & Company, a strategy consulting and investment firm. He lives in northern Virginia.
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