Organization

Creative Destruction examines the current transition from an industrial economy to an information economy and reveals the important role information technology plays in the transformation. Through a synthesis of case studies, computer simulations, economic analysis, and consulting practice findings, the authors demonstrate the important interplay between IT and organizational form and conclude that the emerging dominant form of organization is the network. The authors trace the evolution of this organizational form through a six-stage process that proceeds from downsizing, to distributing free cash flow appropriately to stakeholders, to developing a market access strategy, to focusing on the customer, to developing a market foreclosure strategy, to pursuing global scope. By recognizing the pattern of IT expenditures and their effects on the organizational form, managers can capture the benefits from IT investments and create value for their customers.