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Unlocking the Customer Value Chain: How Decoupling Drives Consumer Disruption, by Thales S. Teixeira
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Review
“Thales Teixeira brings a brilliant and incisive intellect—blending fundamental insights with practical guidance—to the urgent question of digital transformation. In Unlocking the Customer Value Chain, he gives us a roadmap for winning the right customers, and for keeping them, amidst the vast wreckage of destroyed business models. Fresh, smart, and strategic—a worthy read!” -Jim Collins, author of Good to Great, co-author of Built to Last"Digital Disruption has been greatly misunderstood. In Unlocking the Customer Value Chain, Thales Teixeira demystifies some of the misconceptions and, more importantly, creates a generalized framework for executives in virtually any industry to understand and respond to disruptors using a customer-centric approach." -John Quelch, Dean of the Miami Business School and Leonard M. Miller University Professor and Vice Provost, University of Miami"No company can succeed today without being customer-centric—agile enough to recognize the weak signals that customers’ expectations are evolving, often in a non-linear fashion and adapt to them. Thales Teixeira provides a fresh perspective and framework for making tough choices about how to compete in today’s competitive environment of digital disruptive." -Professor Linda A. Hill, Harvard Business School, co-author of Collective Genius “Very practical insights into understanding a customer-centric, not a company-centric, view of the experiences and the expectations of consumers who are shopping today. Professor Thales Teixeira brings simplicity and robust research to these concepts – a must read for marketers.” -Brigitte H. King, Chief Consumer Officer, L’Oréal Americas“HBS professor Thales Teixeira shows how startups upend the ways in which people shop and buy. The great news is that it is all predictable. In Unlocking the Customer Value Chain, he offers a clear roadmap to understand how digital disruption takes place — and what companies can do to hold onto their valued customers.” -Niraj Shah, co-founder and CEO of Wayfair“Necessary reading for all of us being disrupted and hoping to become challengers again.” -Jorge Paulo Lemann, co-founder of 3G Capital “Teixeira addresses a critical and often overlooked point: Disruption is all about making the consumer’s life easier. Technology is only a means to that end.” -Jan Bayer, President of News Media and Executive Board member of Axel Springer"Disruption need not be fearsome for truly customer centric incumbents, who understand and can effectively mitigate pain points on customers’ value chains. Disruptors who attack incumbents' blind spots or ineptness in addressing clients' pain points can quickly decouple and gain market share. Prof. Thales Teixeira's new book is essential reading for both alert incumbents and aspiring disruptors."-Raymond Ch'ien, Chairman of Hang Seng Bank
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About the Author
Thales Teixeira is the Lumry Family Associate Professor of Business Administration at HBS. His work has been published widely in scholarly journals such as Journal of Advertising Research, Journal of Marketing Research, and Marketing Science, as well as in Forbes, the Economist, the New York Times, and Harvard Business Review. Before joining HBS, Teixeira consulted with Microsoft, HP, and Prudential, and he has given stragetic counsel to Nike, Unilever, and countless tech startups.
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Product details
Hardcover: 352 pages
Publisher: Currency (February 19, 2019)
Language: English
ISBN-10: 152476308X
ISBN-13: 978-1524763084
Product Dimensions:
6.4 x 1.2 x 9.6 inches
Shipping Weight: 1.2 pounds (View shipping rates and policies)
Average Customer Review:
5.0 out of 5 stars
18 customer reviews
Amazon Best Sellers Rank:
#11,576 in Books (See Top 100 in Books)
This is the best business book I have read in a long time. Unlocking the Customer Value Chain proposes a novel framework for understanding the rise of tech-driven disruption across myriad industries in the last 20 years, placing a strong emphasis not on the technology itself but how it drives value for consumers.The author identifies commonalities between the way tech has changed the competitive landscape for companies as diverse as retailers, telcos, and auto manufacturers. Initially, I was surprised to learn that something insightful could be said across such a wide array of situations, but was ultimately persuaded by Teixeira's thoroughness in laying out his case. I suspect the book's framing is somewhat less valuable in a B2B context, but that is not an area I can speak to with much confidence.As someone who works in technology, the insights here will be especially valuable as I attempt to assess competitive threats to my employers's business. I think others will feel the same, and highly recommend this book.
This is my first review on amazon. I was impressed by the book review in the Economist magazine. Normally, despite a favorable review, I will often do more homework or read a kindle sample. The review in the Economist was great but the examples used in the review certainly resonated with me. The Kindle book did not disappoint. All the business professors are generally good at articulating the fundamental constructs or principles versus anecdotal stories. The book is perceptive at the underlying principles of digital disruption. Enjoyable read.
This book and the Professor’s class at HBS really helped me understand the what, where and how of creating value for customers along the value chain. So much valuable insights and such a good read for anyone interested in building successful businesses in today’s ever-changing environment.
With the assistance of Greg Piechota, Thales Teixeira wrote this book in order to explain how and why"digital disruption affects every industry, geography, and market, and it isn't going away. Rather than a single, pivotal event, disruption has become a permanent condition of modern markets. New entrants. New technologies. New investors. New business models. How should large, established companies respond?"Teixeira asserts (and I agree) that "new technology isn't driving most disruption today. Consumers are. And that in turn means incumbents require a different kind of innovation in order to thrive -- not technological innovation, but a transformation in [begin italics] business models [end italics]." In other words, the business model needed must take into full account the given customers' value chain. It must understand what they want and the main steps of activities they undertake to satisfy their desires.Teixeira addresses questions such as these:o How did the current borderless world evolve?o What lessons can be learned from Best Buy's competition with online retailers, notably Amazon?o What are the core principles of the concept of decoupling?o What is really disrupting most companioes?o What has been broken by customers?o How best to respond effectively to decoupling? For example, how best to assess risk of response options?o Where to begin when building a disruptive business? What are the most imprtant dos and don'ts to keep in mind?o How best to retain customers?o How best to recover lost customers?In the final chapter, Thales Teixeira focuses on how to spot the next wave of disruption. He acknowledges, "Digital disruption might pose a dire challenge at first, but it also affords us an opprotunity to evolve our mindsets, and our businesses, in powerful ways. Coupling, decoupling, and recoupling comprise a powerful tool -- a trident that allows you to hook many customers. Let's grasp this opportunity -- for our customers' sake, and ultimately for our own. I wish you the best of luck!" as do I.The "trident" reference reminds me of a prediction by Alvin Toffler in Future Shock, published in 1984: "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn." Companies don't disrupt, couple, decouple, and recouple. Their people do. The foundation of a business relationship is the customer's value chain. For a business to succeed, its leaders must understand how to replace a competitor's "link" within that chain with its own and then secure it against all threats.
As a tech entrepreneur schooled by Eric Reis' "The Lean Startup", I tend to think of technology as being the driving force behind the success of my business. This book taught me otherwise!Through carefully examining the customer value chain in my vertical I was able to truly discern between business model drivers, e.g. which activities I make better for the customer, how I do it, when I intersect the customer's decision making process, how much I charge, from business model enablers (data, algorithms, platforms). With this newly acquired clarity, I am better equipped to problem solve on behalf of the consumer.What is more, having to always go back to the Customer Value Chain and check my assumptions is not just illuminating, it is also truly transformative as it forces a much higher dose of empathy for my customer than I had ever had before. The author himself exhibits tremendous empathy by providing in depth examples of successes AND failures in serving customers.If you have an entrepreneurial dream of providing something new or better to the world, read this book! It will help you think about your dream the right way, and you'll be off to the races!
The book is excellent in educating you on the CVC and how decoupling drives consumer disruption. I wish I had know this behavior pattern before as it would have been helpful to understand and most importantly know the actions we needed to take to thwart or mitigate those decoupling efforts competitors are making. In the future, I'll use this knowledge to build models to disrupt my competitors by laser focusing on the CDC first, then on how to deploy the business model or technology to enable the disruption. I highly recommend!
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