Global Meets Digital Global Strategy for Digital Businesses - Digital Strategy for Global Businesses
The world today is at the intersection of two megatrends – Globalization and Digitalization – a business revolution unfolding in real time. Global Meets Digital captures the many nuances of this revolution succinctly, including its impact on our lives and business. An immediate implication of this revolution is that the economic principles that underpinned business and strategy for hundreds of years, such as diminishing returns to scale and resource scarcity, are no longer valid for a large and growing number of products and services. The book will challenge you to think differently not just about digital products, but also about physical products.
In the global-digital world, products are of three kinds—physical, digital, and smart machines (products that are both physical and digital, and connected to the internet)—a distinction missed by most books on strategy and global business. The economics of each kind of products is distinct from that of the others, which has strategic implications for all kinds of businesses –implications such as how to compete and how to create and capture value.
With several mini case studies and over 100 company examples, the book covers themes and cutting-edge issues like the paradox of globalization, digital disruption, disruptive business models, exponential technologies, Internet of Things, competition in digital markets, winner-take-all market dynamics, Industry 4.0, how to innovate, strategizing for the New Normal, and value creation and value capture in both B2C and B2B contexts. The book derives its underpinnings from the practice of global and digital business, while theory remains in the background.
Intended specifically for an executive/professional audience, Global Meets Digital should also be of value to business students and professors learning to dip their toes into a digital world.
Vinod Jain is an expert in global and digital strategy, award-winning professor, Fulbright Scholar, and author of an MBA textbook, Global Strategy. He taught at the Rutgers Business School, Newark and New Brunswick, and the Robert H. Smith School of Business, University of Maryland, College Park. At Maryland, he was also the Founding Director of the federally funded Center for International Business Education and Research and Academic Director of Smith School’s Executive MBA program in China. Since leaving Maryland, he has taught in China, Denmark, Finland, Poland, and India as a visiting or term professor. His opinion pieces have appeared in The Washington Post, The Baltimore Sun, Mensa Bulletin, and Economic Times and Mint (India's #1 and #2 business dailies), among other media. In the past, he worked as a middle- and senior-level executive with American and British multinationals. Vinod has a PhD in Strategy and International Business from the University of Maryland, College Park, MS in Management from UCLA, and MS and BS (Hons) in Statistics from the Indian Statistical Institute, Calcutta.
PART ONE: The Context
- Global Meets Digital
- Paradox of Globalization
- Digital Business: Technology at Warp Speed
- Entering Foreign Markets
- Global Strategy for Digital Businesses
- Digital Business Models
- Digital Strategy for Global B2C Businesses
- Digital Strategy for Global B2B Businesses
- Reinventing Innovation
- Reimagining Business
A global-digital world
Old is new again
Business in the 2020s:
Technology on steroids
Competition—a changing paradigm
Global business in August 1914
When did globalization begin?
What’s behind the growth of globalization?
Multilateral institutions, governments, MNEs, ICTs
Reversal phenomena: Attitudes, innovation, FDI, outsourcing/offshoring
Globalization today vs. in earlier eras
Crossing the chasm
Economics of digital products
Technologies: AI, robotics, 3D printing, cloud, blockchain, and 5G
Exponential characteristics of information technologies
Value creation and value capture with technology
PART TWO: Strategy
Netflix goes abroad
Foreign market selection
The PRISM framework
Learning about foreign markets
Entering foreign markets
Exporting/importing, licensing, franchising, FDI, strategic alliances
Spotify – a case study
How Spotify creates and captures value
Spotify’s global strategy
Peloton – a case study
How Peloton creates and captures value
Peloton’s global strategy
Global strategy for digital businesses
Business models vs. operating models
Digital business models
Direct selling, subscription, freemium, outcome-based, razor and blade, data monetization, platform, ecosystem
Business models for professional services firms
Three kinds of businesses
What is digital strategy
Value creation – value capture
Competition and competitive advantage in digital markets
Digital strategy for global B2C businesses
Nestlé – a case study
Digital transformation at Nestlé
Nestlé’s digital strategy
The four industrial revolutions; Industry 4.0
How IoT (IIoT) changes manufacturing
Advantages of the IIoT
How KCMG benefits from the IIoT
Value creation - value capture framework for IoT
Bosch – a case study
Digital transformation at Bosch
Bosch Group’s digital strategy
InnoCentive reinvents innovation
How innovation happens
Invisible hand of market
Visible hand of management
How to innovate
The Build|Buy|Ally framework
Build: Innovation through internal development
Buy: Innovation through M&A
Ally: Innovation through alliances
Starbucks’ reinvention plan
The five megatrends
Strategizing for the new normal
Value creation and value capture
Competition’s new logic and logistics
Innovation’s new logistics
The fourth industrial revolution
Disruptive business models
"Vinod embarks on an excellent treatise on the convergence between the physical and digital worlds. Alongside, he at once recognizes that fundamental economic principles are no longer sacrosanct; be they the concepts of scarcity and choice, or the dictates of diminishing returns to scale. What we know from textbooks are no longer textbook! Global Meets Digital challenges business leaders to think differently about strategic implications of the global-digital world."
Dr. Janamitra Devan, Head of Executive Office/Chief Strategy Officer, NEOM, Saudi Arabia; former Vice President, The World Bank Group; former Director, Global Strategy Practice, McKinsey & Co.
"This ‘must-read’ book for students and executives is a deeply reasoned and authoritative review of how digitalization speeds the international expansion of service providers like Netflix or Spotify, but it also covers examples of companies that provide physical products to global markets, such as Nestlé, Bosch, Starbucks, and Peloton. For the latter category of firms selling tangible products, digitalization has not only speeded up innovation, but for several it has entailed a fundamental organizational restructuring of their global operations and strategy decisions such as the choice between internal development and production versus strategic alliances versus acquiring foreign companies.
The book is a "deep dive" into one of the fundamental changes occurring in business today – as evidenced by as many as 264 useful references on the subject. Yet, at the same time, it is written in language accessible to students and executives, with lessons for strategy clearly delineated. This book should be essential reading."
Dr. Farok J. Contractor, Distinguished Professor in Management & Global Business, Rutgers Business School, New Brunswick & Newark, New Jersey
"It is rare to find a book on business strategy that combines the scope and depth of Vinod's understanding of strategy with the rigor of academic research that is as accessible in clear prose to the multinational executive who needs to formulate a strategy that is executable. He provides a terrific framework at the intersection of economics, strategy, and technology for understanding the dynamic dialectical process of the global (thesis) meeting digital (antithesis) that enables one to see opportunities and exigencies in the resulting synthesis in ways far superior to vain efforts to predict the future."
R. Lemuel Lasher, Chairman, Leading Edge Only, Ltd., Managing Director, Boehme Eckhart LLC; former Vice President-Strategic Projects and Chief Innovation Officer, Computer Sciences Corporation
"In this excellent book, Jain provides a roadmap for how global firms should leverage digitalization to enhance their global competitiveness. Whether your firm is big or small, young or old, a B2C or a B2B company, Jain shows you how to craft a digital strategy and stay ahead of competitors. Peppered with hundreds of examples from diverse industries and countries, Jain’s book is a treasure trove of practical insights for managers, academics, and students alike."
Dr. Ravi Ramamurti, University Distinguished Professor of International Business & Strategy, and Director, Center for Emerging Markets, Northeastern University
"The book is far more than a study of the intersection of two megatrends—globalization and technology. It recognizes that while the axes are nominally orthogonal, they interact powerfully as the two phenomena evolve in the business world – along with the consequential impacts on our personal and professional lives. In fact, the author makes clear that this deepening intersection creates a new need for business capabilities demanding new models and new strategies to succeed in the global-digital world. The text is clear, well organized and meticulously punctuated with relevant case studies, and the scholarly works of those attempting to understand the why’s and broader implications of these phenomena. Finally, it offers a framework for leaders to examine their corporate strategies and evaluate them for future relevance in a methodical way."
Dr. Alpheus Bingham, author of "The Innovation Marketplace" and "One Smart Crowd" and founder of InnoCentive
"Professor Vinod Jain’s latest book Global Meets Digital: Global Strategy for Digital Businesses - Digital Strategy for Global Businesses is very timely. It used to be no firms had digital strategy; then some firms had a digital strategy; and today all firms should have a digital strategy, but many do not. This book will help you learn how to develop a successful one. Professor Jain has written a very accessible book that clearly explains complex issues about digital strategy and includes many interesting case studies which help readers to better understand the issues discussed and learn about international best practice in the area. Global Meets Digital is unique in that it covers strategies for physical, digital, and smart products like the Internet of Things. The book also covers many important current themes like digital disruption, the paradox of globalization, exponential technologies, industry 4.0, disruptive business models, competition in digital markets, and winner-take-all market dynamics. This book is a must-read for any student or executive concerned about digital strategy."
Dr. Carl Fey, Professor of Strategy, BI Norwegian Business School, Oslo, Norway; former Dean, Nottingham University Business School China
"At last, a book that addresses the inescapable reality of the fusion between the physical and digital worlds. What impacted me most about this world-class book is the practical and pertinent applications of its content. Vinod Jain managed to combine his research, knowledge, and industry experience with relevant case studies delivering a superb book. I’m glad Vinod Jain has so well and so fully shed light on these two vital and here-to-stay forces."
Humberto "HAP" Patorniti, Partner at Tenacity Inc. and Adjunct Professor, Rutgers State University; former CEO and President, SODEXO, Mexico, North America
"Globalization has been going on since humans started to consume something that was built somewhere else. It started with the Silk Road and then to ships to railways to trucks to airways and finally the Internet. All of these modes of knowledge and service transport have helped increase the speed at which the services can move across the globe, and it is just continuing to pick up speed. Global Meets Digital gives you the whole perspective on what is happening and what is yet to come, and how one by one each industry is getting transformed. If you are in any position in a business and are thinking about what Digital means for your business, then this is the book for you!"
Lokesh Kumar, Chief Technology Officer, sheeva.ai and Co-founder and Chief Architect, urgent.ly
"I highly recommend Dr. Vinod Jain’s new book, "Global Meets Digital", for several reasons. It is a book for our time in business that will enable us to also prepare for the future environment of the melting of "older business axioms" into new, adaptable business strategies to take any business enterprise into the near and far-reaching future. Jain critically examines not only how we got here, but more importantly, how we should think about next steps in navigating the ever dynamic and changing world of business where "giants have fallen" and new entries can generate a meteoric rise in shareholder value. Essentially, the rules have changed and ALL business must recognize and plan for the future. I enjoyed the mixture of real-world business case studies with the lessons learned to prepare one’s own business. In my opinion, this is a "must read" for any organization or person contemplating how to grow in a digital business environment."
H.E. The Hon., Dr. Thomas A. Cellucci, former First Chief Commercialization Officer of the United States of America, Author of 30 books, and Serial Entrepreneur
"Vinod writes an extremely timely book for today’s executives. It captures two pressing, inter-connected issues of our time—globalization and digitalization, and offers numerous insights about how we can address them—in an integrated manner. I highly recommend the book, particularly to executives aiming to expand their global footprint through a digital strategy."
Dr. Tony Tong, Senior Associate Dean for Faculty & Research and Professor of Strategy & Entrepreneurship, Leeds School of Business, University of Colorado Boulder
"Dr. Jain has long shared his expertise regarding the relationship between global and digital business. His latest book, Global Meets Digital, provides a look at the historical evolution of this relationship. Further, given the unprecedented rate of change today, driven by the twin forces of globalization and technology, he points to the business revolution that is unfolding real time. Dr. Jain provides an insightful strategic context to the growing interconnectedness between the two and offers numerous case examples that allows the reader to peer into the future. Global Meets Digital explores the opportunities and challenges and is a must read for business leaders who are struggling to reimagine today’s new normal."
Keith Darcy, President, Darcy Partners Inc.; former Independent Senior Advisor, Deloitte & Touche LLP, and former Chairman, Better Business Bureau Foundation
"Vinod has a unique style of explaining even complex concepts in a simple manner, which makes this book enjoyable to read. He addresses the challenges of global expansion for new-age digital businesses and the need for digital transformation of traditional global enterprises in a lucid fashion with authentic case studies across the spectrum. I recommend this book as compulsory reading for business leaders looking for practical guidance on several topics not covered in other management books."
Sridharan Rangarajan, Vice President, Platforms, Viessmann, Germany; former Director, Hybrid Cloud Strategy, Bosch, Germany; and former Program Director, Bluemix Practice, IBM Software Group
"Dr. Jain captures the importance of growth strategies for Global and Digital businesses through his impressive research, extensive case studies, academic excellence, and many years of engagement with the world’s leading corporations. This is a brilliant book for executives facing a highly charged market dynamic in the global-digital world. While most books on strategy tend to focus on B2C businesses, what I, with over 30 years of senior-level experience in B2B businesses worldwide, really appreciated is that Global Meets Digital has a whole chapter devoted to competing in B2B businesses."
Steven R Zirkel, President & CEO of Blue Everest LLC; former Managing Director, Owens Corning Asia Pacific
"As an active practitioner in international business for over 30 years I really appreciated reading Global Meets Digital by Vinod Jain. I strongly recommend reading this book as it is timely and it discusses the real issues companies are facing right now. The important concepts are clearly explained and supported by practical cases so that the reader is able to relate to real situations. The ideal content to bring ourselves up to date on critical issues that impact global strategy, Vinod Jain’s new book is, in my view, a must read."
Jean-Paul DAVID, CEO of Mercadex Europe & Director of Institut MX, Paris, France
"The title of this book – Global Meets Digital – captures starkly the new reality. In the new era, global enterprises will thrive only if they embrace the new opportunities and sidestep the challenges created by the exploding digitization of the global economy. Digitization affects every aspect of your global strategy - what markets to target, how to win in these markets, and how to design and manage the global value chain. This book covers these and related topics."
Dr. Anil K. Gupta, Michael Dingman Chair in Strategy and Globalization, The University of Maryland, College Park; Author, The Quest for Global Dominance and Getting China and India Right
"In modern times, it's not enough to have strategy, you need to have a flexible and resilient execution feedback loops to maximize outcomes. Vinod combines an approach that does both and explains in his book how businesses can benefit from taking advantage of the natural contradictions that exist between the physical and digital, the local and the global, and between theory and practice."
PV Boccasam, Chairman of Jôrn Capital