SOURCES
Prologue
For more details on how Disney introduced the MagicBand, listen to the podcast on our book website, connected-strategy.com.
For more information on the MagicBand, see Austin Carr, “The Messy Business of Reinventing Happiness,” Fast Company, April 15, 2015, https://
For a thorough discussion on how interconnected, smart devices can affect competition and strategy, see Michael E. Porter and James E. Heppelman, “How Smart, Connected Products Are Transforming Competition,” Harvard Business Review, November 2014, 64–88.
Chapter 1
For very insightful early work on strategy in the context of the internet, see Michael E. Porter, “Strategy and the Internet,” Harvard Business Review, March 2001, 62–78; Raphael Amit and Christoph Zott, “Value Creation in E-business,” Strategic Management Journal 22, no. 6–7 (2001): 493–520; and Adrian J. Slywotzky, Karl Weber, and David J. Morrison, How Digital Is Your Business? (New York: Crown Business, 2000).
For more detail on business models and business model design, see the following works by Raphael Amit and Christoph Zott: “Business Model Design and the Performance of Entrepreneurial Firms,” Organization Science 18, no. 2 (2007): 181–199; “The Fit between Product Market Strategy and Business Model: Implications for Firm Performance,” Strategic Management Journal 29, no. 1 (2008): 1–26; “Business Model Design: An Activity System Perspective,” Long Range Planning 43, nos. 2–3 (2010): 216–226.
For a discussion of the willingness-to-pay concept and foundational work on the concept of “value,” see Adam M. Brandenburger and Harborne W. Stuart, Jr., “Value-Based Business Strategy,” Journal of Economics and Management Strategy 5, no. 1 (1996): 5–24; and Adam M. Brandenburger and Barry J. Nalebuff, Coopetition (New York: Doubleday, 1996).
The customer journey has its intellectual foundation in the work by Ian McMillan and Rita McGrath on the consumption chain. See Ian MacMillan and Rita Gunther McGrath, “Discovering New Points of Differentiation,” Harvard Business Review, July–August 1997, 133–138, 143–145; and Rita Gunther McGrath and Ian MacMillan, The Entrepreneurial Mindset; Strategies for Continuously Creating Opportunity in an Age of Uncertainty (Boston: Harvard Business School Press, 2000).
For a wide-ranging discussion of new technologies and their impact on industries, firms, and society, see Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: Norton, 2016); and Andrew McAfee and Erik Brynjolfsson, Machine, Platform, Crowd: Harnessing Our Digital Future (New York: Norton, 2017).
The pioneering work of our colleagues at Penn, in particular Kevin G. Volpp and David A. Asch, provides a number of great ideas for how patient care might be redesigned through the introduction of principles of behavioral economics into the domain of medicine. We discuss several examples of their research in other chapters.
The work by Christian Terwiesch, David Asch, and Kevin Volpp looks at problems of introducing connected health care in greater detail. See Christian Terwiesch, David Asch, and Kevin Volpp, “Technology and Medicine: Reimagining Provider Visits as the New Tertiary Care,” Annals of Internal Medicine 167, no. 11 (2017): 814–815.
For a delightful exposition on the origins of the phrase “on the shoulders of giants,” see Robert K. Merton, On the Shoulders of Giants: A Shandean Postscript (New York: Free Press, 1965).
For more on platform strategies, see Marshall W. Van Alstyne, Geoffrey G. Parker, and Sangeet Paul Choudary, “Pipelines, Platforms, and the New Rules of Strategy,” Harvard Business Review, April 2016, 54–60.
For the number of active Pokemon Go players, see Craig Smith, “85 Incredible Pokemon Go Statistics and Facts,” DMR, May 5, 2018, https://
For more details on Rolls-Royce’s transition from products to services, see “Power by the Hour,” Rolls-Royce, accessed October 24, 2018, https://
Chapter 2
For the size of the US grocery industry, see “Supermarket Facts,” FMI, accessed June 17, 2018, https://
For the size of the Indian grocery market and information on BigBasket, see “Why India’s Online Grocery Battle Is Heating Up,” Knowledge@Wharton, April 26, 2018, http://knowledge.wharton.upenn.edu/article/indias-online-grocery-battle-heating/?utm_source=kw_newsletter&utm_medium=email&utm_campaign=2018-05-01.
Gerard Cachon and Christian Terwiesch discuss the classification of willingness-to-pay drivers in further detail in Operations Management (New York: McGraw-Hill Education, 2016).
For more on the concept of the “efficiency frontier,” see Michael E. Porter, “What Is Strategy?,” Harvard Business Review, November–December 1996, 61–78.
For more information on Blue Apron, see Sarah Halzack, “Why This Start-up Wants to Put Vegetables You’ve Never Heard of on Your Dinner Table,” Washington Post, June 15, 2016, https://
The efficiency frontier can be shifted by better matching supply with demand. This is also the title of the book written by Cachon and Terwiesch: Gerard Cachon and Christian Terwiesch, Matching Supply with Demand: An Introduction to Operations Management (New York: McGraw Hill Education, 2012).
An interview with an Instacart executive can be found on our book website, connected-strategy.com.
For more information on Alibaba’s Hema stores, see Christine Chou, “Alibaba to Open 3 Hema Stores in Xian in 2018,” Alizila, January 18, 2018, http://
Pareto dominance also plays an important role in the notion of an efficient frontier in finance. When making financial investments and allocating assets to investment portfolios, investors typically face a risk-reward trade-off. Investments that have high expected returns, such as investments in venture capital or private equity, typically also come with more risk (technically speaking, the standard deviation of the returns is larger). According to Nobel laureate Harry Markowitz, the efficient frontier is characterized by those investment portfolios for which no other portfolios exists that achieves a higher expected return for the same standard deviation of return (risk). Investors care about both characteristics of their portfolio, expected returns (that they would like to be high) and risk (that they would prefer to be low). Some investors might prefer an expected return of 10% and a standard deviation of returns of 4% over one with an expected return of 6% and a standard deviation of 2%. Some more risk-averse investors might prefer it the other way around. However, no rational investor would prefer an expected return of 6% and a standard deviation of 4% over one with 10% expected return and a standard deviation of 2%. It is said that the former is Pareto dominated by the latter. Thus, the efficient frontier is the set of investments that are not Pareto dominated. For the foundational treatise, see H. M. Markowitz, “Portfolio Selection,” Journal of Finance 7, no. 1 (1952): 77–91.
For times at which surge pricing happens for Uber, see Peter Cohen, Robert Hahn, Jonathan Hall, Steven Levitt, and Robert Metcalfe, “Using Big Data to Estimate Consumer Surplus: The Case of Uber” (NBER Working Paper No. 22627, National Bureau of Economic Research, Cambridge, MA, September 2016), https://
The details of efficiency and its relationship to capacity utilization are discussed as part of a lean operations framework in the book written by Cachon and Terwiesch: Gerard Cachon and Christian Terwiesch, Operations Management (New York: McGraw-Hill Education, 2016).
All data on the New York City cab operations is taken from the reports issued by the New York Taxi and Limousine Commission, accessed June 18, 2018, http://
All Uber data is taken from a case study written by our colleague Gerard Cachon, “Uber: Charging Up and Down,” The Wharton School, 2018, as well as from Jonathan V. Hall and Alan B. Kruger, “An Analysis for the Labor Market for Uber’s Driver-Partners in the United States” (working paper, January 2015), http://
An interview with a HomeAway executive can be found on our book website, connected-strategy.com.
For more information on Goodr, featured in the sidebar, see Ben Paynter, “This App Delivers Leftover Food to the Hungry, Instead of to the Trash,” Fast Company, May 3, 2018, https://
For average vehicle occupancy, see the National Household Travel Survey by the Federal Highway Administration: “National Household Travel Survey,” US Department of Transportation Federal Highway Administration, accessed June 18, 2018, https://
For data on Match.com, see “Match.com Information, Statistics, Facts and History,” Dating Sites Reviews, last modified May 28, 2018, https://www.datingsitesreviews.com/staticpages/index.php?page=Match-com-Statistics-Facts-History.
The elements of willingness-to-pay have also been discussed by Cachon and Terwiesch in Operations Management.
For the Target story, see Charles Duhigg, “How Companies Learn Your Secrets,” New York Times Magazine, February 16, 2012, https://
For more information on Cambridge Analytica’s use of Facebook data, see Matthew Rosenberg, Nicholas Confessore, and Carole Cadwalladr, “How Trump Consultants Exploited the Facebook Data of Millions,” New York Times, March 17, 2018, https://
For information on Google apps using location data, see Ryan Nakashima, “Google Tracks Your Movements, Like It or Not,” AP News, August 13, 2018, https://
For more on the topic of whether Uber drivers should be considered employees, see Daniel Wiessner, “US Judge Says Uber Drivers Are Not Company’s Employees,” Reuters Business News, April 12, 2018, https://
For the clash between Airbnb and local cities concerning regulation, see Scott Zamost, Hannah Kliot, Morgan Brennan, Samantha Kummerer, and Lora Kolodny, “Unwelcome Guests: Airbnb, Cities Battle over Illegal Short-Term Rentals,” CNBC News, May 24, 2018, https://
For the use of Amazon Echo recordings in a murder case, see Eliott C. McLaughlin, “Suspect OKs Amazon to Hand Over Echo Recordings in Murder Case,” CNN, April 26, 2017, https://
Chapter 3
For the argument that power tools compete with neckties, see Michael E. Porter, “The Five Competitive Forces That Shape Strategy,” Harvard Business Review, January 2008, 79–93.
Chapter 4
For more on the expanded role of “search”—e.g., in creating curated offering—see Stefan Weitz, Search (Brookline, MA: Bibliomotion, 2014).
For more details on the examples in the sidebar on true personalization, see “Cosmetics Industry in the U.S.—Statistics & Facts,” Statista, accessed June 18, 2018, https://
For more detail on the examples in the sidebar on coach behavior wearable sensors, see “Discover Two New Wearable Technologies,” La Roche-Posay, accessed June 18, 2018, https://
For more details on the examples in the sidebar on automated execution with video games, see Dylan Matthews, “Humans Have Spent More Time Watching Gangnam Style Than Writing All of Wikipedia,” Vox, June 7, 2014, https://
In medicine, the term automatic hovering was introduced in a New England Journal of Medicine article by David A. Asch, Ralph W. Muller, and Kevin G. Volpp. See David A. Asch, Ralph W. Muller, and Kevin G. Volpp, “Automated Hovering in Health Care—Watching Over the 5000 Hours,” New England Journal of Medicine 367 (2012): 1–3.
Chapter 5
For the number of teachers in the United States, see “Fast Facts,” National Center for Education Statistics, accessed June 18, 2018, https://nces.ed.gov/fastfacts/display.asp?id=372.
For more on the Khan Academy, see “About,” Khan Academy, accessed June 18, 2018, https://
An interview with a Lynda.com executive can be found on our book website, connected-strategy.com.
The Mack Institute report by Christian Terwiesch and Karl T. Ulrich discusses the disruptive potential of online teaching. See Christian Terwiesch and Karl T. Ulrich, “Will Video Kill the Classroom Star? The Threat and Opportunity of Massively Open Online Courses for Full-Time MBA Programs,” Mack Institute for Innovation Management, July 16, 2014, http://
An interview with a Rosetta Stone executive can be found on our book website.
For more information on artificial intelligence and deep learning, see Robert D. Hof, “Deep Learning: Artificial Intelligence Is Finally Getting Smart,” MIT Technology Review, 2013, https://
For an insightful discussion of how increased connectivity among products and services requires changes within organizations, see Michael E. Porter and James E. Heppelman, “How Smart, Connected Products Are Transforming Companies,” Harvard Business Review, October 2015, 97–114.
For the market share of Amazon, at least when we were writing this book, see Rani Molla, “Amazon Could Be Responsible for Nearly Half of U.S. E-commerce Sales in 2017,” Recode, October 24, 2017, https://
For more information on the costs of nonadherence for asthma medication, mentioned in the sidebar, see Aurel O. Iuga and Maura J. McGuire, “Adherence and Health Care Costs,” Risk Management and Healthcare Policy 7 (2014): 35–44; and Adherence to Long-Term Therapies: Evidence for Action (Geneva: World Health Organization, 2013), http://
We found the material from the Stanford d.School very helpful in articulating the framework of the how-why ladder. See “Welcome,” Stanford d.School, accessed June 18, 2018, https://
For the study concerning adherence to medication after cardiac treatment, see Kevin G. Volpp et al., “Effect of Electronic Reminders, Financial Incentives, and Social Support on Outcomes after Myocardial Infarction,” JAMA Internal Medicine 177, no. 8 (June 2017): 1093–1101.
For more information on Netflix and a list of Netflix genres, see Rani Molla, “Netflix Now Has Nearly 118 Million Streaming Subscribers Globally,” Recode, January 22, 2018, https://
For the Organisation for Economic Co-operation and Development guidelines, see The OECD Privacy Framework (OECD, 2013), http://
For the EU guidelines, see “GDPR Key Changes,” EUGDPR, accessed November 24, 2018, https://
Chapter 7
For data on car2go, see “Get In and Drive Off: Free-Floating Carsharing with car2go,” Daimler, accessed June 18, 2018, https://
For more information on Carnival’s medallion, see Brooks Barnes, “Coming to Carnival Cruises: A Wearable Medallion That Records Your Every Whim,” New York Times, January 4, 2017, https://
For more details on the examples in the sidebar on e-scooter and battery sharing, see Bérénice Magistretti, “Gogoro Raises $300 Million for Its Battery-Swapping Technology,” VentureBeat, September 19, 2017, https://
For more details on the sidebar on the Pandora of the art world, see Molly Schuetz, “New York’s Artsy Is Making It Even Easier to Buy Art Online,” Bloomberg, March 27, 2018, https://
A thorough discussion of direct-to-consumer companies, and the observation that customer acquisition costs are the new rent, see Tom Foster, “Over 400 Startups Are Trying to Become the Next Warby Parker. Inside the Wild Race to Overthrow Every Consumer Category,” Inc., May 2018, https://
For data on Kickstarter, see “Stats,” Kickstarter, accessed November 23, 2018, https://
For data on DonorsChoose.org, see “Impact,” DonorsChoose.org, accessed November 23, 2018, https://
For more information on Crisis Text Line, see Alice Gregory, “R U There? A New Counselling Service Harnesses the Power of the Text Message,” New Yorker, February 9, 2015, https://
Chapter 8
For average spending on dental care, see Health Policy Institute, “U.S. Dental Expenditures: 2017 Update,” American Dental Association, accessed June 18, 2018, https://www.ada.org/~/media/ADA/Science%20and%20Research/HPI/Files/HPIBrief_1217_1.pdf?la=en.
For more information on Abilify, see “FDA Approves Pill with Sensor That Digitally Tracks If Patients Have Ingested Their Medication,” US Food and Drug Administration, November 13, 2017, https://
For more information on Fitbit, see Stephanie Baum, “Fitbit Plans to Submit Sleep Apnea, AFib Detection Tools for FDA Clearance,” MedCity News, February 27, 2018, https://
In the context of the limits of traditional revenue models, we found the work by Karan Girotra and Serguei Netessine very insightful. In their book on business model innovation, they outline how to create a business model that is more robust in an uncertain environment. The authors discuss how value can be created by overcoming these inefficiencies. See Karan Girotra and Serguei Netessine, The Risk-Driven Business Model: Four Questions That Will Define Your Company (Boston: Harvard Business Review Press, 2014).
For the study concerning reimbursement of retinal photographs, see David A. Asch, Christian Terwiesch, and Kevin G. Volpp, “How to Reduce Primary Care Doctors’ Workloads while Improving Care,” Harvard Business Review, November 2017.
For more information on Rolls-Royce’s revenue model, see “ ‘Power by the Hour’: Can Paying Only for Performance Redefine How Products Are Sold and Serviced?,” Knowledge@Wharton, February 21, 2007, http://
The work by Marco Iansiti and Roy Levien further discusses the idea of moving the focus from the supply chain to the ecosystem. See Marco Iansiti and Roy Levien, “Strategy as Ecology,” Harvard Business Review, March 2004, 68–78, 126.
For a great discussion on when and how freemium models work, see Vineet Kumar, “Making ‘Freemium’ Work,” Harvard Business Review, May 2014, 27–29.
For more detail on Tencent and WeChat, see Eveline Chao, “How WeChat Became China’s App for Everything,” Fast Company, January 2, 2017, https://
For data on in-app purchases, see “These 25 Wildly Popular Android Games Are Raking in the Most Cash from In-App Purchases,” ZDNet, April 17, 2017, https://
For the number of Amazon Prime members, see Heather Kelly, “Amazon Reveals It Has More Than 100 Million Prime Members,” CNN Tech, April 19, 2018, http://
For the prices of Google AdWords, see Elisa Gabbert, “The 25 Most Expensive Keywords in AdWords—2017 Edition!,” WordStream Blog, last updated September 12, 2018, https://
Chapter 9
The product development book by Karl T. Ulrich and Steven D. Eppinger explains several approaches to deconstruction (the authors talk about decomposition). In its chapter on concept generation, the book provides an excellent guide for how to generate a large number of concepts in response to a given set of needs. See Karl T. Ulrich and Steven D. Eppinger, Product Design and Development, 6th ed. (New York: McGraw-Hill Education, 2015).
For more details on the sidebar on applying the STAR approach to a new schizophrenia drug, see Kanika Monga and Olivia Myrick, “Digital Pill That ‘Talks’ to Your Smartphone Approved for First Time,” ABC News, November 15, 2017, http://abcnews.go.com/Health/digital-pill-talks-smartphone-approved-time/story?id=51161456.
In table 9-1, we note that one “job to be done” is to “[a]ssess delight of user with coffee brand using physiological measurements.” For work in this direction, see Cipresso Pietro, Serino Silvia, and Riva Giuseppe, “The Pursuit of Happiness Measurement: A Psychometric Model Based on Psychophysiological Correlates,” Scientific World Journal 2014 (2014): 1–15, http://
The computer network textbook by Andrew S. Tanenbaum and David J. Wetherall provides a detailed discussion of the stack framework, especially the Open Systems Interconnection model. See Andrew S. Tanenbaum and David J. Wetherall, Computer Networks, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 2010). See also Norman F. Schneidewind, Computer, Network, Software, and Hardware Engineering with Applications (Hoboken, NJ: Wiley-IEEE Press, 2012).
The classification tree framework is also inspired by Ulrich and Eppinger, Product Design and Development. It provides an effective method for exploring a broad array of design approaches for a given design problem. In his book Design: Creation of Artifacts in Society (Philadelphia: University of Pennsylvania, 2011), Karl T. Ulrich further examines the power of exploring a design space with a tree-based approach.
Christian Terwiesch and Karl Ulrich, in Innovation Tournaments: Creating and Selecting Exceptional Opportunities (Boston: Harvard Business School Press, 2009), distinguish between two types of innovation techniques, internal and external search. External search is about scanning the environment for new ideas, oftentimes benefiting from domain arbitrage. A technology might be well established in one industry but still not be used at all in another industry.
The concept of a selection table is discussed in Product Design and Development by Ulrich and Eppinger in the context of product development. The underlying approach of comparing a set of decision alternatives along a number of criteria is often referred to as multiattribute decision making and has a long tradition in decision sciences.
For a history of voice recognition, see Melanie Pinola, “Speech Recognition through the Decades: How We Ended Up with Siri,” PCWorld, November 2, 2011, https://
In Innovation Tournaments, Terwiesch and Ulrich discuss how innovation can sometimes be triggered by an unmet need but also can occur when a new solution approach is invented. In their work, the authors define innovation as a novel match between solution and need.
For information on digital twins, see Michael Grieves, “Digital Twin: Manufacturing Excellence through Virtual Factory Replication,” white paper, 2014, http://
For more background on Heller’s application, see “Appsolute Efficiency,” Siemens, accessed October 24, 2018, https://
For more information on the sidebar on delivery via drones, see “Lifesaving Deliveries by Drone,” Zipline, accessed June 19, 2018, http://
An interview with a Volocopter executive can be found on our book website, connected-strategy.com.
For the origins of the bracelet monitoring device, see Matt Allyn, “Spider-Man Created the Electronic Bracelet?!,” Esquire, May 4, 2007, https://
Chapter 10
For an excellent discussion of the various business uses of augmented reality for both sensing and responding, see Michael E. Porter and James E. Heppelmann, “Why Every Organization Needs an Augmented Reality Strategy,” Harvard Business Review, November–December 2017, 46–57.
For the impact of blockchain technology on trust, see Kevin Werbach, The Blockchain and the New Architecture of Trust (Cambridge: MIT Press, 2018).
For the possible economy-wide impact of 3-D printing, see Richard D’Aveni, The Pan-Industrial Revolution: How New Manufacturing Titans Will Transform the World (Boston: Houghton Mifflin Harcourt, 2018).