Rating: 
Summary: View from the backyard?
Review: There was a time when land, labor and capital were widely recognized as factors of production and wealth creation. Then came the famous Keynesian theory that explained the need to put purchasing power in the hands of people to create the virtuous cycle of economic growth. But one of the fundamental assumptions of all economic theories is the principle of "other things remaining the same". Now that most factors assumed to be given and constant at the time of these theories have drastically changed and even been eliminated in economies that are borderless and connected by the internet, countries and corporations can no longer base their strategies on old economic theories. Kenichi Omae describes four dimensions of the new economy - Physical, Borderless, Multiples and Cyber and the need to operate and leverage on all the four in order to be successful in the "new continent". But to travel in a continent, we need a highway, a vehicle and the fuel that runs it. He describes these as platforms for transaction, delivery and payment. Assuming that a company actually does business on all four dimensions using established platforms, it becomes a Godzilla generating high market multiples and further enabling its growth through acquisitions. Conceptually good reading. Countries like India will certainly benefit by working on these concepts in the new economy, an opportunity to catch-up with what was missed in the last century- an opportunity to move from the "cyber backyard" into the mansion of future wealth.
Rating: 
Summary: The View from the Rear
Review: This is a very unusual visionary book, because it primarily comes from the perspective of how countries that are lagging can begin to catch up. As a result, this book will be very interesting to those in countries that have done relatively little to embrace the Internet compared to the most advanced countries. The fundamental criticism is that many are trying to embrace the new without abandoning the old (India) while others are not trying to do enough of either one (lesser developed countries). The key point is summarized as getting rid of the old governmental concepts (protectionism, state-owned industries, and adopting a world competition focus for your industries), and adding the new environment (venture capital, favorable tax environment, electronic infrastructure, expanded information, and high market values). The new is encouraged by globalization, the cyber economy, and extraordinary access to low-cost capital. Those with access to the new will grow at extraordinary rates while those in the old economy will grow at slower or slower rates. The rich will get richer, and the poor will fall behind in relative terms. The vision of how these factors will come together in the future is purely conceptual, and present no special insight into how the new economy will develop. I was at the EMC Analyst Day today in Boston, and the models presented there were way beyond anything in this book. That raises the question about whether the Godzillas (as defined by Ohmae, strong companies with control over part of the new economy space like Cisco, Oracle, and EMC) may not have significant knowledge advantages that will increase and extend their leads regardless of what lagging governments and the companies that operate in their countries do. The next 5 years will see the content revolution in the cyber economy. More value will be added during this period of time intellectually, financially, and growthwise than in the rest of human history combined. If countries follow Ohmae's prescription, they will miss the special opportunities of the next 5 years. I think his medicine is too little, too late. Read this book and see what you think. Being a visionary without explicit models of the irresistible forces driving the new directions can be a disservice. Ohmae mentions that he has tried to develop these new economy models, but with no success. Although I disagree with the conclusions of this book (they are necessary, but not sufficient), I still rate it as five stars for being the best book I have read from this perspective. If you live in a country that has done little in the new economy, this will be a valuable book. If you live in the United States, I'm not sure this will help you very much. Overcome your misconception and disbelief stalls about the new development of the new economy by drawing on the perspectives of the best-in-class companies!
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