Notes
Introduction
1. Kasper Rørsted, interview by author.
Chapter 1
1. Theodore Levitt, “Marketing Myopia,” Harvard Business Review, August 1960, 45–56.
2. Das Narayandas, Sunil Gupta, and Rachna Tahilyani, “Flipkart: Transitioning to a Marketplace Model,” Case 516-017 (Boston: Harvard Business School, 2015, revised 2016).
3. Jeffrey Dastin, “Exclusive: Amazon’s Internal Numbers on Prime Video, Revealed,” Reuters, March 14, 2018, https://www.reuters.com/article/us-amazon-com-ratings-exclusive/exclusive-amazons-internal-numbers-on-prime-video-revealed-idUSKCN1GR0FX.
4. Ibid.
5. Tricia Duryee, “Amazon May Have up to 80 Million High-Spending Prime Members Worldwide,” GeekWire, September 14, 2015.
6. Christian Camerota, “Amazon’s Prime Opportunity,” HBS News, July 14, 2015.
7. Kelly Liyakasa, “BMO Capital Markets: Amazon’s 2017 Ad Revenue Could Top $3.5B,” AdExchanger, April 28, 2017.
8. Jeff Dunn, “Netflix and Amazon Are Estimated to Spend a Combined $10.5 Billion on Video This Year,” Business Insider, April 10, 2017, http://www.businessinsider.com/netflix-vs-amazon-prime-video-content-spend-estimate-chart-2017–4.
9. Sunil Gupta and Margaret L. Rodriguez, “Amazon in 2017,” Case 514-025 (Boston: Harvard Business School, 2013, revised 2017).
10. Kelly Liyakasa, “Amazon’s Q1 Sheds (More) Light on Ad Revenues,” AdExchanger, April 23, 2015.
11. “Amazon Commands Nearly Half of Consumers’ First Product Search,” PR Newswire, October 6, 2015.
12. JP Mangalindan, “In Online Search War, It’s Google vs. Amazon,” Fortune, October 15, 2014, http://fortune.com/2014/10/15/in-online-search-war-its-google-vs-amazon/.
13. Spencer Reiss, “Cloud Computing. Available at Amazon.com Today,” Wired, April 21, 2008, https://www.wired.com/2008/04/mf-amazon/.
14. Robert D. Hof, “Jeff Bezos’ Risky Bet,” Bloomberg Businessweek, November 13, 2006, 52–58.
15. “Quarterly Revenue of Amazon Web Services from 1st Quarter 2014 to 4th Quarter 2017,” statista.com, https://www.statista.com/statistics/250520/forecast-of-amazon-web-services-revenue/.
16. Carol Hymowitz, “For Now, the Focus Is More on Innovation Than on Budget Cuts,” Wall Street Journal, July 17, 2006.
17. John Deere Annual Report, 2014, http://www.annualreports.com/HostedData/AnnualReportArchive/d/NYSE_DE_2014.pdf.
18. Hymowitz, “Innovation,” Wall Street Journal, July 17, 2006.
19. Ibid.
20. Matthew Cawood, “Streamlining Big Data Collection,” Farm Weekly, July 6, 2015.
21. Michael E. Porter and James E. Heppelmann, “How Smart, Connected Products Are Transforming Competition,” Harvard Business Review, November 2014, 64–88.
22. Adam Levy, “Netflix CEO Reed Hastings Just Told Cable How to Beat Netflix,” The Motley Fool, November 22, 2015.
23. Michael E. Porter, “How Competitive Forces Shape Strategy,” Harvard Business Review, March 1979, 137.
24. See YCharts, “The Cash Conversion Cycle,” Forbes, March 10, 2012, http://www.forbes.com/sites/ycharts/2012/03/10/the-cash-conversion-cycle/, for the source of this data and discussion of cash conversion cycle.
25. Rohit Arora, “Another Industry Amazon Plans to Crush Is Small-Business Lending: Op-Ed,” CNBC, June 16, 2017, https://www.cnbc.com/2017/06/16/amazon-plans-to-crush-small-business-lending.html.
26. Chuck Salter, “Kindle 2 Preview: Jeff Bezos on Why Amazon Works Backwards,” Fast Company, February 6, 2009, https://www.fastcompany.com/1153395/kindle-2-preview-jeff-bezos-why-amazon-works-backwards.
27. Alastair Stevenson, “John Deere: Technology Vendors Need to Feed Agriculture’s Big Data Needs,” V3, June 5, 2014, https://www.v3.co.uk/v3-uk/news/2348372/john-deere-technology-vendors-need-to-feed-agricultures-big-data-needs.
28. Cawood, “Streamlining,” Farm Weekly, July 6, 2015.
29. Mike Ramsey, “Ford Says It Will Focus More on Transportation-Services Sector,” Wall Street Journal, January 5, 2016, B5.
Chapter 2
1. Global Entertainment and Media Outlook 2016–2020: A World of Differences, PwC Report, https://www.pwc.com.tr/tr/industry/entertainment-media/outlook-global-entertainment-and-media-outlook-2016–2020.pdf.
2. The description of the Weather Company is based on personal interviews with David Kenny and his team. Additional sources include Rosabeth Moss Kanter, “The Weather Company,” Case 314-083 (Boston: Harvard Business School, 2014) and Claire Suddath, “The Weather Channel’s Secret: Less Weather, More Clickbait,” Bloomberg Businessweek, October 9, 2014, https://www.bloomberg.com/news/articles/2014-10-09/weather-channels-web-mobile-growth-leads-to-advertising-insights.
3. Kerry Close, “A Third of American Malls Will Close Soon,” Time, May 12, 2016, http://time.com/money/4327632/shopping-malls-closing/.
4. Sunil Gupta, Michela Addis, and Ruth Page, “Eataly: Reimagining the Grocery Store,” Case 515-708 (Boston: Harvard Business School, 2015).
5. Personal interview with Oscar Farinetti by the author.
6. Personal interview with Alex Saper by the author.
7. Phil Wahba, “Reinventing the American Mall,” Fortune, December 15, 2016, 150.
8. Sarwant Singh, “The Future of Car Retailing,” Forbes, February 5, 2014, https://www.forbes.com/sites/sarwantsingh/2014/02/05/the-future-of-car-retailing/#7df822ce7d00.
9. Philips, “Philips Provides Light as a Service to Schiphol Airport,” http://www.philips.com/a-w/about/news/archive/standard/news/press/2015/20150416-Philips-provides-Light-as-a-Service-to-Schiphol-Airport.html.
10. “Washington Metro to Install Cost-Free LEDs,” Lux, November 26, 2013, http://luxreview.com/article/2013/11/washington-metro-to-install-cost-free-leds.
11. Joris Van Ostaeyen, Analysis of the Business Potential of Product-Service Systems for Investment Goods (PhD thesis, KU Leuven, 2014).
12. Atlas Copco, “Mobile Air Compressors,” https://www.atlascopco.com/en-us/construction-equipment/products/Mobile-air-compressors.
13. Thomas Fischer et al., “Managerial Recommendations for Service Innovations in Different Product-Service Systems,” in Introduction to Product/Service-System Design, eds. Tomohiko Sakao and Mattias Lindahl (London: Springer, 2009), 237.
14. Mark Egan, “Deep Learning: New Subsea Service Model Helps Oil Drillers Limit Costs,” GE Reports, February 24, 2016.
15. Thomas Fleming and Markus Zils, “Toward a Circular Economy: Philips CEO Frans van Houten,” McKinsey Quarterly, February 2014.
16. Horizons, Michelin’s Letter to Its Shareholders, November 2014.
17. Karim R. Lakhani, Marco Iansiti, and Kerry Herman, “GE and the Industrial Internet,” Case 614-032 (Boston: Harvard Business School, 2014, revised 2015).
18. Martha Heller, “GE’s Jim Fowler on the CIO Role in the Digital Industry Economy,” CIO, March 29, 2016.
19. Heather Ashton and Jeffrey Hojlo, “IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2018 Predictions,” IDC Report US43317317, December 2017.
20. Vivek Agarwal, Vinay Arora, and Kris Renker, Evolving Service Centric Business Models: Quest for Profitability and Predictability, Accenture Report, 2013.
Chapter 3
1. Smithers Pira, The Future of Global Printing to 2020 (Surrey, UK: Smithers Pira, 2015).
2. Felix Oberholzer-Gee and Julie M. Wulf, “Alibaba’s Taobao (A),” Case 709-456 (Boston: Harvard Business School, 2009).
3. “Benefits of Online Platforms,” Oxera, October 2015, https://www.oxera.com/Latest-Thinking/Publications/Reports/2015/What-are-the-benefits-of-online-platforms.aspx.
4. Information shared with the author by Henrik Müller-Hansen.
5. For details see Das Narayandas, Sunil Gupta, and Rachna Tahilyani, “Flipkart: Transitioning to a Marketplace Model,” Case 516-017 (Boston: Harvard Business School, 2015, revised 2016).
6. Catherine Shu, “Alibaba Group Starts Work on Massive Logistics Network to Provide 24-Hour Deliveries throughout China,” TechCrunch, May 28, 2013, https://beta.techcrunch.com/2013/05/28/alibaba-csn/?_ga=2.12398516.144819195.1522769375-453968051.1501205451.
7. William Ruh, interview by author.
8. Thor Olavsrud, “GE, Pitney Bowes Team Up on Predictive and Prescriptive Analytics,” CIO, July 14, 2015, https://www.cio.com/article/2947908/big-data/ge-pitney-bowes-team-up-on-predictive-and-prescriptive-analytics.html.
9. Thomas Kellner, “The Power of Predix: An Inside Look at How Pitney Bowes Is Using the Industrial Internet Platform,” GE Reports, February 24, 2016, https://www.ge.com/reports/the-power-of-predix-an-inside-look-at-how-pitney-bowes-has-been-using-the-industrial-internet-platform/.
10. General Electric, 2015 Annual Report, http://www.ge.com/ar2015/letter/.
11. This section is based on Sunil Gupta and Sara Simonds, “Goldman Sachs’ Digital Journey,” Case 518-039 (Boston: Harvard Business School, 2017).
12. See Thales S. Teixeira and Morgan Brown, “Airbnb, Etsy, Uber: Acquiring the First Thousand Customers,” Case 516-094 (Boston: Harvard Business School, 2016, revised 2018); and Michael Blanding, “How Uber, Airbnb, and Etsy Attracted Their First 1,000 Customers,” Harvard Business School Working Knowledge, July 13, 2016.
13. Travis [Kalanick], “Chicago—Uber’s Biggest Launch to Date?” Uber Newsroom, September 22, 2011.
14. Narayandas, Gupta, and Tahilyani, “Flipkart.”
15. Geoffrey Parker and Marshall W. Van Alstyne, “Two-Sided Network Effects: A Theory of Information Product Design,” Management Science 51, no. 10 (2005): 1494.
16. Elizabeth J. Altman and Mary Tripsas, “Product-to-Platform Transitions: Organizational Identity Implications,” in The Oxford Handbook of Creativity, Innovation, and Entrepreneurship, eds. Christina E. Shalley, Michael A. Hitt, and Jing Zhou (Oxford: Oxford University Press, 2015), 379–394.
17. For an example of this see Clarence Lee, Vineet Kumar, and Sunil Gupta, “Designing Freemium: Managing Growth and Monetization Strategies,” unpublished paper, July 2017.
18. “Global Mobile OS Market Share in Sales to End Users from 1st Quarter 2009 to 2nd Quarter 2017,” Statista, https://www.statista.com/statistics/266136/global-market-share-held-by-smartphone-operating-systems/.
19. Nilson’s Global Card Report 2015, The Nilson Report, April 2016, http://www.businesswire.com/news/home/20160509005108/en/Nilson-Report-Releases-Global-Cards-Report-2015.
20. Michael Wüertenberger, interview by author.
21. For a discussion on various degrees of openness, see Thomas R. Eisenmann, “Platform-Mediated Networks: Definitions and Core Concepts,” Module Note 807-049 (Boston: Harvard Business School, 2006, revised 2007).
22. Erle Ellis, “Ecosystem,” The Encyclopedia of the Earth, September 24, 2014, http://www.eoearth.org/view/article/152248/.
23. James F. Moore, “Predators and Prey: A New Ecology of Competition,” Harvard Business Review, May–June 1993, 75.
24. Peter James Williamson and Arnoud De Meyer, “Ecosystem Advantage: How to Successfully Harness the Power of Partners,” California Management Review 55, no. 1 (2012): 24.
25. Eamonn Kelly, “Introduction: Business Ecosystems Come of Age,” Deloitte Insights, April 15, 2015. This article was part of Deloitte’s Business Trends 2015 report.
26. Tim Cook, “September 2014 Live Event,” webcast, Apple, Inc., http://www.apple.com/live/2014-sept-event/.
27. Sunil Gupta, Shelle Santana, and Margaret L. Rodriguez, “Apple Pay,” Case 516-027 (Boston: Harvard Business School, 2015, revised 2016).
28. Wilko Stark, interview by author.
29. Mark Zuckerberg in a November 12, 2016, Facebook post, https://www.facebook.com/zuck/posts/10103253901916271.
30. Alvin E. Roth, “The Art of Designing Markets,” Harvard Business Review, October 2007, 118–126.
Chapter 4
1. Paraphrased from NASA’s ISS Longeron Challenge, https://www.nasa.gov/content/iss-longeron-challenge-0.
2. Mike Wall, “$30,000 NASA Contest to Boost Space Station’s Power,” Space.com, January 17, 2013, https://www.space.com/19315-nasa-contest-space-station-power.html.
3. Sylvain Zimmer, “Optimizing the ISS Solar Arrays, a Python Solution to the NASA Longeron Challenge,” February 6, 2013, https://sylvainzimmer.com/2013/02/06/optimizing-the-iss-solar-arrays-a-python-solution-to-the-nasa-longeron-challenge/.
4. “NASA Tournament Lab: Space Poop Challenge,” Herox, https://herox.com/SpacePoop.
5. Karim R. Lakhani et al., “Prize-Based Contests Can Provide Solutions to Computational Biology Problems,” Nature Biotechnology 31, no. 2 (2013): 108–111.
6. Larry Huston and Nabil Sakkab, “Connect and Develop: Inside Procter & Gamble’s New Model for Innovation,” Harvard Business Review, March 2006, 58–66.
7. Eric von Hippel, “The Dominant Role of Users in the Scientific Instrument Innovation Process,” Research Policy 5, no. 3 (1976): 212.
8. Eric von Hippel, Free Innovation (Cambridge: MIT Press, 2017).
9. Eric von Hippel, “Open User Innovation,” The Encyclopedia of Human-Computer Interaction, 2nd ed., eds. Mads Soegaard and Rikke Friis Dam (Aarhus N, Denmark: Interaction Design Foundation, 2013).
10. Dietmar Harhoff and Karim R. Lakhani, Revolutionizing Innovation: Users, Communities, and Open Innovation (Cambridge: MIT Press, 2016).
11. Mike Helser, “The Future of Open Innovation,” Research-Technology Management, January–February 2017, 35.
12. Henry Chesbrough, “The Future of Open Innovation: The Future of Open Innovation Is More Extensive, More Collaborative, and More Engaged with a Wider Variety of Participants,” Research-Technology Management, January–February 2017, 35.
13. Kevin J. Boudreau and Karim R. Lakhani, “Using the Crowd as an Innovation Partner,” Harvard Business Review, April 2013, 60–69.
14. J. M. Bates and C. W. J. Granger, “The Combination of Forecasts,” Operational Research Quarterly 20, no. 4: 451.
15. Sunil Gupta, “Big Data: Big Deal or Big Hype,” The European Business Review, May–June 2015, 11.
16. Eliot van Buskirk, “How the Netflix Prize Was Won,” Wired, September 22, 2009, https://www.wired.com/2009/09/how-the-netflix-prize-was-won/.
17. Von Hippel, “The Dominant Role of Users.”
18. Dietmar Harhoff, “Context, Capabilities, and Incentives—The Core and the Periphery of User Innovation,” in Revolutionizing Innovation: Users, Communities, and Open Innovation, eds. Dietmar Harhoff and Karim R. Lakhani (Cambridge, MA: MIT Press, 2016), 27–44.
19. Kate Linebaugh, “Citizen Hackers Tinker with Medical Devices,” Wall Street Journal, September 26, 2014. This story was also highlighted by Eric von Hippel in his book Free Innovation.
20. Jeroen P. J. de Jong et al., “Market Failure in the Diffusion of Consumer-Developed Innovations: Patterns in Finland,” Research Policy 44, no. 10 (2015): 1856.
21. Jon Fredrickson, interview by author.
22. John Davis, “InnoCentive—Oil Spill Cleanup Part 2—Meet the Solver,” https://www.youtube.com/watch?v=5_ucQKWmxdk.
23. Karim Lakhani, interview by author.
Chapter 5
1. Matt Burgess and Amelia Heathman, “Samsung Opens Galaxy Note 7 Exchange after Battery Fire Problems,” Wired, September 19, 2016, http://www.wired.co.uk/article/samsung-galaxy-note-7-exchange-uk-battery-fire.
2. Brian X. Chen and Choe Sang-Hun, “Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone,” New York Times, October 11, 2016.
3. Germany Trade & Invest, Industrie 4.0: Smart Manufacturing for the Future (Berlin: Germany Trade & Invest, 2014).
4. Willy Shih, “Building the Digital Manufacturing Enterprise of the Future at Siemens,” Case 616-060 (Boston: Harvard Business School, 2016).
5. Siemens, “Defects: A Vanishing Species?” Pictures of the Future: The Magazine for Research and Innovation, October 1, 2014.
6. Rajiv Lal and Scott Johnson, “GE Digital,” Case 517-063 (Boston: Harvard Business School, 2017).
7. James Manyika et al., “Unlocking the Potential of the Internet of Things,” McKinsey Global Institute, June 2015.
8. “MX3D Bridge,” MX3D website, http://mx3d.com/projects/bridge/.
9. “The First On-Site House Has Been Printed in Russia,” Apis Cor, February 20, 2017, http://apis-cor.com/en/about/news/first-house.
10. Kaya Yurieff, “This Robot Can 3D Print a Building in 14 Hours,” CNN Tech, May 2, 2017.
11. “3D Printing and the Future of Supply Chains,” DHL Report, November 2016.
12. Marianna Kheyfets, “Could ‘Westworld’ Ever Be a Reality? This Doctor Is Already 3D Printing Tissues and Organs,” Circa, February 3, 2017.
13. Tomas Kellner, “An Epiphany of Disruption: GE Additive Chief Explains How 3D Printing Will Upend Manufacturing,” GE Reports, November 13, 2017.
14. Ibid.
15. Ibid.
16. “EOS and Airbus Group Innovations Team on Aerospace Sustainability Study for Industrial 3D Printing,” Airbus Press Release, February 5, 2014.
17. Devindra Hardawar, “Mattel’s New ThingMaker Is a $300 3D Printer for Toys,” Endgadget, February 15, 2016.
18. DHL Report, 2016.
19. Nick Parkin, “Doctors Turn to 3D Printing to Source Medical Supplies in Earthquake-Recovering Nepal,” ABC News Australia, March 5, 2017.
20. DHL Report, 2016.
21. Varun Bhasin and Muhammad Raheel Bodla, “Impact of 3D Printing on Global Supply Chains by 2020” (thesis, Massachusetts Institute of Technology, 2014).
22. Dave McNary, “ ‘Star Wars’ Helps Licensed Merchandise Sales Grow to $251.7 Billion,” Variety, June 21, 2016.
23. Daniel Cohen, Matthew Sargeant, and Ken Somers, “3-D Printing Takes Shape,” McKinsey Quarterly, January 2014.
24. Ernst & Young, “How Will 3D Printing Make Your Company the Strongest Link in the Value Chain: EY’s Global 3D Printing Report 2016.”
25. MIT, “Self-Assembly Lab,” http://www.selfassemblylab.net.
26. Lockheed Martin, “Collaborative Human Immersive Laboratory,” http://www.lockheedmartin.com/us/products/chil.html.
27. Magid Abraham and Marco Annuziata, “Augmented Reality Is Already Improving Worker Performance,” hbr.org, https://hbr.org/2017/03/augmented-reality-is-already-improving-worker-performance.
28. Ibid.
29. Haje Jan Kamps, “Touch Surgery Brings Surgery Training to Augmented Reality,” TechCrunch, January 6, 2017.
30. Lucas Matney, “Walmart Is Bringing VR Instruction to All of Its U.S. Training Centers,” TechCrunch, June 1, 2017.
31. “Virtual & Augmented Reality: Understanding the Race for the Next Computing Platform,” Goldman Sachs Report, January 13, 2016.
32. James A. Cooke, “Kimberly-Clark Connects Its Supply Chain to Store Shelf,” Supply Chain Quarterly, Q1 2013.
33. Stan Aronow, Kimberly Ennis, and Jim Romano, “The Gartner Supply Chain Top 25 for 2017,” Gartner Report, May 24, 2017.
34. Hayley Peterson, “Amazon Is Getting Closer to Crushing America’s Biggest Clothing Stores,” Business Insider, January 14, 2017, http://www.businessinsider.com/amazon-becomes-the-biggest-clothing-retailer-in-the-us-2017-1.
35. “Demand Planning—The Catalyst for Higher Performance,” Tecsys White Paper, 2016.
36. Jeremy Hill, “Inside Amazon’s Hiring Spree at Its Massive Etna Warehouse,” BizJournals.com, August 2, 2017.
37. Eilene Zimmerman, “Cheaper and More Nimble Than Amazon’s Kiva Robot,” Forbes, January 11, 2016, https://www.forbes.com/sites/eilenezimmerman/2016/01/11/cheaper-and-more-nimble-than-amazons-kiva-robot/#4b510933cb32.
38. Mark Roberti, “How Tiny Wireless Tech Makes Workers More Productive,” Wall Street Journal, August 16, 2016.
39. Ibid.
40. “UPS Fact Sheet,” UPS, https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=FactSheets&id=1426321563187-193.
41. Mathieu Dougados et al., “The Missing Link: Supply Chain and Digital Maturity,” Capgemini Consulting, December 16, 2013, https://www.capgemini.com/consulting/resources/the-missing-link-supply-chain-and-digital-maturity/.
42. Steven Rosenbush and Laura Stevens, “At UPS, the Algorithm Is the Driver,” Wall Street Journal, February 16, 2015.
43. Dakin Campbell, “Goldman Set Out to Automate IPOs and It Has Come Far, Really Fast,” Bloomberg, June 13, 2017, https://www.bloomberg.com/news/articles/2017-06-13/goldman-set-out-to-automate-ipos-and-it-s-come-far-really-fast.
44. Sunil Gupta and Sara Simonds, “Goldman Sachs’ Digital Journey,” Case 518-039 (Boston: Harvard Business School, 2017).
45. Singapore Academy of Law, Legal Technology Vision: Towards the Digital Transformation of the Legal Sector (Singapore: Singapore Academy of Law, 2017).
46. Zach Abramowitz, “More Evidence That Software Is Eating the Legal Industry: An Interview with LawGeex CEO Noory Bechor,” Above the Law, June 2, 2015.
47. Singapore Academy of Law, Legal Technology Vision.
Chapter 6
1. This discussion is based on Sunil Gupta and Eren Kuzucu, “Enpara.com: Digital Bank at a Crossroad,” Case 518-030 (Boston: Harvard Business School, 2017).
2. This discussion is based on Robert J. Dolan and Leslie K. John, “Kiehl’s Since 1851: Pathway to Profitable Growth,” Case 514-044 (Boston: Harvard Business School, 2013, revised 2015).
3. Ibid., page 2.
4. This discussion is based on Jill Avery, Chekitan S. Dev, and Peter O’Connor, “Accor: Strengthening the Brand with Digital Marketing,” Case 316-103 (Boston: Harvard Business School, 2016).
5. Nick Vivion, “Accor Is Now AccorHotels and Fights OTAs with Open Enrollment for Independents,” Tnooz, June 3, 2015.
6. “AccorHotels Opens Its Distribution Platform to Independent Hotels,” Hospitality On, June 6, 2015, http://hospitality-on.com/en/news/2015/06/03/accorhotels-opens-its-distribution-platform-to-independent-hotels/.
7. Nicole Spector, “Retailers Are Making It Easier for You to Return Gifts—and Buy More,” NBC News, January 3, 2017.
8. Cliff Kuang, “Disney’s $1 Billion Bet on a Magical Wristband,” Wired, March 10, 2015.
Chapter 7
1. Gregory Karp, “Millennials, Nontraditional Travelers Chase the Sapphire Reserve,” NerdWallet, April 5, 2017, https://www.nerdwallet.com/blog/credit-cards/chase-sapphire-reserve-millennials-travel-trends/.
2. Jennifer Surane and Hugh Son, “Dimon Says New Sapphire Card Cuts Profit by up to $300 Million in Quarter,” Bloomberg, December 6, 2016.
3. Ibid.
4. “J.P. Morgan Chase Strategy Update,” Marianne Lake, Chief Financial Officer, February 27, 2018, https://www.jpmorganchase.com/corporate/investor-relations/document/3cea4108_strategic_update.pdf.
5. Justina Perro, “Mobile Apps: What’s a Good Retention Rate?” Localtyics.com, March 21, 2017, http://info.localytics.com/blog/mobile-apps-whats-a-good-retention-rate.
6. Corrie Driebusch and Eliot Brown, “Blue Apron Serves Up an Insipid Offering,” Wall Street Journal, June 28, 2017, https://www.wsj.com/articles/blue-apron-prices-ipo-at-10-a-share-1498688019.
7. Robert S. Kaplan, “Elkay Plumbing Products Division,” Case 110-007 (Boston: Harvard Business School, 2009, revised 2010).
8. For details, see Sunil Gupta and Joseph Davies-Gavin, “BBVA Compass: Marketing Resource Allocation,” Case 511-096 (Boston: Harvard Business School, 2011, revised 2012).
9. Kevin Roberts, Lovemarks: The Future beyond Brands (Brooklyn: PowerHouse Books, 2015).
10. Jim Lecinski, “Winning the Zero Moment of Truth,” Google report, June 2011, https://www.thinkwithgoogle.com/marketing-resources/micro-moments/zero-moment-truth/.
11. David Court et al., “The Consumer Decision Journey,” McKinsey Quarterly, June 2009.
12. Glen L. Urban et al., “Morphing Banner Advertising,” Marketing Science 33, no. 1 (2013): 27.
13. John R. Hauser, Guilherme Liberali, and Glen L. Urban, “Website Morphing 2.0: Switching Costs, Partial Exposure, Random Exit, and When to Morph,” Management Science 60, no. 6 (2014): 1594.
14. Garrett A. Johnson, Randall A. Lewis, and Elmar I. Nubbemeyer, “Ghost Ads: Improving the Economics of Measuring Online Ad Effectiveness,” Journal of Marketing Research 54, no. 6 (2017): 867.
15. Anja Lambrecht and Catherine Tucker, “When Does Retargeting Work? Information Specificity in Online Advertising,” Journal of Marketing Research 50, no. 5 (2013): 561.
16. Mark Borden, “The Mekanism Guarantee: They Engineer Virality,” Fast Company, May 1, 2010.
17. Carla Marshall, “How Many Views Does a YouTube Video Get? Average Views by Category,” TubularInsights, February 2, 2015.
18. Sharad Goel, Duncan J. Watts, and Daniel G. Goldstein, “The Structure of Online Diffusion Networks,” Proceedings of the 13th ACM Conference on Electronic Commerce, 623. See also Derek Thompson, “Why It’s a Lot Harder to ‘Go Viral’ on the Internet Than You Think,” Time, February 17, 2017.
19. Duncan Watts and Jonah Peretti, “Viral Marketing for the Real World,” Harvard Business Review, May 2007, 22–23.
20. Felix Oberholzer-Gee, “Buzzfeed—The Promise of Native Advertising,” Case 714-512 (Boston: Harvard Business School, 2014).
21. Ibid.
22. Jonathan Ringen, “Point Man,” Fast Company, July/August 2017, 85.
23. John Deighton and Leora Kornfeld, “The Ford Fiesta,” Case 511-117 (Boston: Harvard Business School, 2011).
24. Sinan Aral, “What Would Ashton Do—and Does It Matter?” Harvard Business Review, May 2013, 25–27.
25. Eytan Bakshy et al., “Everyone’s an Influencer: Quantifying Influence on Twitter,” Proceedings of the Fourth ACM International Conference on Web Search and Data Mining, 65.
26. Oberholzer-Gee, “Buzzfeed.”
27. Carl F. Mela, Sunil Gupta, and Donald R. Lehmann, “The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice,” Journal of Marketing Research 34, no. 2 (1997): 248.
28. Michael Lewis, “Customer Acquisition Promotions and Customer Asset Value,” Journal of Marketing Research 43, no. 2 (2006): 195.
29. Julian Villanueva, Shijin Yoo, and Dominique M. Hanssens, “The Impact of Marketing-Induced Versus Word-of-Mouth Customer Acquisition on Customer Equity Growth,” Journal of Marketing Research 45, no. 1 (2008): 48.
30. Philipp Schmitt, Bernd Skiera, and Christophe Van den Bulte, “Why Customer Referrals Can Drive Stunning Profits,” Harvard Business Review, June 2011, 30.
31. Donald Ngwe and Thales Teixeira, “Improving Online Retail Margins by Increasing Search Frictions,” working paper, Harvard Business School, Boston, 2017.
32. “37 Cart Abandonment Rate Statistics,” Baymard Institute, January 9, 2017, https://baymard.com/lists/cart-abandonment-rate.
33. Bill Carmody, “Freemium Is About Marketing & Innovation, Not Pricing,” Inc., April 14, 2017.
34. Uzi Shmilovici, “The Complete Guide to Freemium Business Models,” Techcrunch, September 4, 2011, https://techcrunch.com/2011/09/04/complete-guide-freemium/.
35. Clarence Lee, Vineet Kumar, and Sunil Gupta, “Designing Freemium: Strategic Balancing Growth and Monetization,” working paper, Harvard Business School, Boston, 2015, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2767135. See also Sunil Gupta and Carl Mela, “What Is a Free Customer Worth?” Harvard Business Review, November 2008, 102–109; and Vineet Kumar, “Making ‘Freemium’ Work,” Harvard Business Review, May 2014, 27–29.
36. Kaifu Zhang et al., “Content Contributor Management and Network Effects in a UGC Environment,” Marketing Science 31, no. 3 (2011): 433.
Chapter 8
1. Andrew Rice, “Does BuzzFeed Know the Secret?” New York, April 7, 2013; http://nymag.com/news/features/buzzfeed-2013–4/.
2. Tobi Elkin, “Survey Finds 90% of People Skip Pre-Roll Video Ads,” MediaPost, June 8, 2016.
3. Yuyu Chen, “More Than 60 Percent of Snapchat Users Skip Ads on the Platform,” Digiday, February 13, 2017.
4. “The State of the Blocked Web: 2017 Global Adblock Report,” PageFair.
5. Mary Meeker, “Internet Trends 2017—Code Conference,” Kleiner Perkins, May 31, 2017.
6. Daniel G. Goldstein et al., “The Economic and Cognitive Costs of Annoying Display Advertisements,” Journal of Marketing Research 51, no. 6 (2014): 742.
7. https://en.wikipedia.org/wiki/E-mart#cite_note-6.
8. “Tesco Builds Virtual Shops for Korean Commuters,” The Telegraph, June 27, 2011, https://www.telegraph.co.uk/technology/mobile-phones/8601147/Tesco-builds-virtual-shops-for-Korean-commuters.html.
9. Anaheeta Goenka and Abhijit Panicker, “Kan Khajura Station: From the ‘Dark’ to Connectivity,” Warc, 2014, https://www.warc.com/NewsAndOpinion/News/34990.
10. “HUL Opens Up Kan Khajura Tesan,” Warc, June 29, 2015, https://www.warc.com/NewsAndOpinion/News/34990.
11. This discussion is based on Sunil Gupta, Srinivas K. Reddy, and David Lane, “Marketing Transformation at Mastercard,” Case 517-040 (Boston: Harvard Business School, 2017).
12. Drew Neisser, “Clorox CMO’s Five Building Blocks of a Better Brand,” AdAge, March 8, 2017.
13. Thales S. Teixeira, “When People Pay Attention to Video Ads and Why,” hbr.org, October 14, 2015.
14. “Moment Marketing Tool Kit,” 2006, Warc.
15. “Your Guide to Winning the Shift to Mobile,” Google, September 2015, https://www.thinkwithgoogle.com/marketing-resources/micro-moments/micromoments-guide-pdf-download/.
16. Sunil Gupta, “In Mobile Advertising, Timing Is Everything,” hbr.org, November 4, 2015.
17. Allison Mooney and Brad Johnsmeyer, “I-Want-to-Buy Moments: How Mobile Has Reshaped the Purchase Journey,” Google, May 2015, https://www.thinkwithgoogle.com/marketing-resources/micro-moments/i-want-to-buy-moments/.
18. Gupta, “Mobile Advertising.”
19. See company website for Home Connect: https://www.dbs.com.sg/personal/loans/mortgage-resources-tools/property-guide-app.
20. Forrester Research, “Moments That Matter: Intent-Rich Moments Are Critical to Winning Today’s Consumer Journey,” July 2015.
21. Robert D. Hof, “Marketing in the Moments, to Reach Customers Online,” New York Times, January 17, 2016, https://www.nytimes.com/2016/01/18/business/media/marketing-in-the-moments-to-reach-customers-online.html?_r=0.
22. Consumers in the Micro-Moment, Wave 3, Google/Ipsos, U.S., August 2015, as reported in Google’s Micromoment Guide to Winning Mobile.
23. See Brandy Shaul, “Report: Average App Session Length Is Around 5 Minutes,” Adweek, November 22, 2016; and “One-Third of Mobile App Engagements Last Less Than One Minute,” Swrve.com, July 17, 2014, https://www.swrve.com/company/press/one-third-of-mobile-app-engagements-last-less-than-one-minute.
24. Micromoment Guide to Winning Mobile, Google, September 2015.
25. Daniel An, “Find Out How You Stack Up to New Industry Benchmarks for Mobile Page Speed,” Google, February 2018, https://www.thinkwithgoogle.com/marketing-resources/data-measurement/mobile-page-speed-new-industry-benchmarks/.
Chapter 9
1. Chris Anderson, “The End of Theory: The Data Deluge Makes the Scientific Method Obsolete,” Wired, June 23, 2008.
2. Jeremy Ginsberg et al., “Detecting Influenza Epidemics Using Search Engine Query Data,” Nature 457 (2008): 1012.
3. David Lazer et al., “The Parable of Google Flu: Traps in Big Data Analysis,” Science 343 (2014): 1203.
4. Andrew Lipsman et al., “The Power of ‘Like’: How Brands Reach (and Influence) Fans through Social-Media Marketing,” Journal of Advertising Research, March 2012, 40.
5. Leslie K. John et al., “Does ‘Liking’ Lead to Loving? The Impact of Joining a Brand’s Social Network on Marketing Outcomes,” Journal of Marketing Research 54, no. 1 (2017): 144. See also Leslie K. John et al., “What’s the Value of a Like?” Harvard Business Review, March–April 2017.
6. Nicholas A. Christakis and James H. Fowler, “The Spread of Obesity in a Large Social Network over 32 Years,” New England Journal of Medicine 357 (2007): 370.
7. Rob Stein, “Obesity Spreads in Social Circles as Trends Do, Study Indicates,” Washington Post, July 26, 2007.
8. Ethan Cohen-Cole and Jason M. Fletcher, “Detecting Implausible Social Network Effects in Acne, Height, and Headaches: Longitudinal Analysis,” British Medical Journal 337 (2008): 2533.
9. Russell Lyons, “The Spread of Evidence-Poor Medicine via Flawed Social-Network Analysis,” Statistics, Politics and Policy 2, no. 1 (2011): 2151.
10. Cosma Rohilla Shalizi and Andrew C. Thomas, “Homophily and Contagion Are Generically Confounded in Observational Social Network Studies,” Sociological Methods and Research 40 (2011): 211.
11. Sinan Aral, Lev Muchnik, and Arun Sundararajan, “Distinguishing Influence-Based Contagion from Homophily-Driven Diffusion in Dynamic Networks,” Proceedings of the National Academy of Sciences 106, no. 51 (2009): 21544.
12. Catherine Tucker, “Identifying Formal and Informal Influence in Technology Adoption with Network Externalities,” Management Science 54, no. 12 (2008): 2024.
13. Joseph P. Davin, Sunil Gupta, and Mikolaj Jan Piskorski, “Separating Homophily and Peer Influence with Latent Space,” working paper 14-053, Harvard Business School, Boston, 2014. http://www.hbs.edu/faculty/Publication%20Files/14-053_f72cd431-8b9c-4991-8ea4-6ab5209f11a1.pdf.
14. Dean Eckles, René F. Kizilcec, and Eytan Bakshy, “Estimating Peer Effects in Networks with Peer Encouragement Designs,” Proceedings of the National Academy of Sciences 113, no. 27 (2016): 7316.
15. Thomas Blake, Chris Nosko, and Steven Tadelis, “Consumer Heterogeneity and Paid Search Effectiveness: A Large-Scale Field Experiment,” Econometrica 83 (2014): 155.
16. Mark Sweney, “Google Keyword Advertising Is Waste of Money, Says eBay Report,” The Guardian, March 13, 2013.
17. Weijia (Daisy) Dai and Michael Luca, “Effectiveness of Paid Search Advertising: Experimental Evidence,” working paper 17-025, Harvard Business School, Boston, 2017. See also “Do Search Ads Really Work?” Harvard Business Review, March–April 2017, 26.
18. Sunil Gupta and Joseph Davies-Gavin, “BBVA Compass: Marketing Resource Allocation,” Case 511-096 (Boston: Harvard Business School, 2012).
19. For recent examples of research on attribution, see Pavel Kireyev, Koen Pauwels, and Sunil Gupta, “Do Display Ads Influence Search? Attribution and Dynamics in Online Advertising,” International Journal of Research in Marketing 33, no. 3 (2016): 475; Hongshuang (Alice) Li and P. K. Kannan, “Attributing Conversions in a Multichannel Online Marketing Environment: An Empirical Model and a Field Experiment,” Journal of Marketing Research 51 (2014): 40; and Anindya Ghose and Vilma Todri-Adamopoulos, “Toward a Digital Attribution Model: Measuring the Impact of Display Advertising on Online Consumer Behavior,” MIS Quarterly 40, no. 4 (2016): 889.
20. Jim Lecinski, Winning the Zero Moment of Truth (Palo Alto: Think with Google, 2011), 25.
21. For details see Kireyev, Pauwels, and Gupta, “Do Display Ads Influence Search?”
22. “TV and Digital Are in a Dead Heat for US Media Dollars,” eMarketer, October 4, 2016.
23. https://www.statista.com/statistics/187439/share-of-e-commerce-sales-in-total-us-retail-sales-in-2010/.
24. https://www.facebook.com/business/success/general-motors-onstar.
25. Thorsten Wiesel, Koen Pauwels, and Joep Arts, “Marketing’s Profit Impact: Quantifying Online and Off-line Funnel Progression,” Marketing Science 30, no. 4 (2010): 604.
26. Isaac M. Dinner, Harald J. Van Heerde, and Scott A. Neslin, “Driving Online and Offline Sales: The Cross-Channel Effects of Traditional, Online Display, and Paid Search Advertising,” Journal of Marketing Research 51, no. 5 (2014): 527.
27. Prasad Naik and Kay Peters, “A Hierarchical Marketing Communications Model of Online and Offline Media Synergies,” Journal of Interactive Marketing 23, no. 4 (2009): 288.
Chapter 10
1. http://investors.nytco.com/investors/investor-news/investor-news-details/2018/The-New-York-Times-Company-Reports-2017-Fourth-Quarter-and-Full-Year-Results/default.aspx.
2. Sunil Gupta and Lauren Barley, “Reinventing Adobe,” Case 514-066 (Boston: Harvard Business School, 2014, revised 2015).
3. Michael Corkery, “Adobe Buys Omniture: What Were They Thinking?” Wall Street Journal, September 16, 2009, https://blogs.wsj.com/deals/2009/09/16/adobe-buys-omniture-what-were-they-thinking/.
4. Gupta and Barley, “Reinventing Adobe.”
5. Shantanu Narayen, interview by author, April 2017.
6. Sunil Gupta and Sara Simonds, “Goldman Sachs’ Digital Journey,” Case 518-039 (Boston: Harvard Business School, 2017).
Chapter 11
1. Discussion in this section is based on Sunil Gupta and Eren Kuzucu, “Enpara.com: Digital Bank at a Crossroad,” Case 518-030 (Boston: Harvard Business School, 2017).
2. Ibid.
3. Ibid.
4. Interview conducted by author.
5. Nicholas Wade, “Your Body Is Younger Than You Think,” New York Times, August 2, 2005, http://www.nytimes.com/2005/08/02/science/your-body-is-younger-than-you-think.html.
6. Discussion in this section is based on Sunil Gupta and Sara Simonds, “Goldman Sachs’ Digital Journey,” Case 518-039 (Boston: Harvard Business School, 2017).
Chapter 12
1. “The Future of Agriculture,” The Economist, June 11, 2016.
2. Ibid.
3. Sunil Gupta and Sara Simonds, “Goldman Sachs’ Digital Journey,” Case 518-039 (Boston: Harvard Business School, 2017).
4. “10 Key Marketing Trends for 2017 and Ideas for Exceeding Customer Expectations,” IBM report, 2017, https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=WRL12345USEN.
5. Sunil Gupta, “Big Data: Big Deal or Big Hype?” The European Business Review, May 25, 2015.
6. David Lazer et al., “The Parable of Google Flu: Traps in Big Data Analysis,” Science 343, no. 6176 (2014): 1203.
7. “The Return of the Machinery Question,” The Economist, June 25, 2016.
8. Quoc V. Le et al., “Building High-Level Features Using Large Scale Unsupervised Learning,” Proceedings of the 29th International Conference on Machine Learning, 2012, 507.
9. “Machinery Question,” The Economist.
10. Carl Benedikt Frey and Michael A. Osborne, “The Future of Employment: How Susceptible Are Jobs to Computerisation?” working paper, University of Oxford, Oxford, 2013, http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf.
11. James Manyika et al., “Harnessing Automation for a Future That Works,” McKinsey Global Institute, January 2017, http://www.mckinsey.com/global-themes/digital-disruption/harnessing-automation-for-a-future-that-works.
12. Arwa Mahdawi, “What Jobs Will Still Be Around in 20 Years? Read This to Prepare Your Future,” The Guardian, June 26, 2017.
13. “Automation and Anxiety: Will Smarter Machines Cause Mass Unemployment?” The Economist, June 25, 2016.
14. Susan Lund, James Manyika, and Kelsey Robinson, “Managing Talent in a Digital Age,” McKinsey Quarterly, March 2016.
15. Interview conducted by author.
16. Kenneth A. Egol et al., “Can Video Game Dynamics Identify Orthopaedic Surgery Residents Who Will Succeed in Training?” International Journal of Medical Education 8 (2017): 123.
17. Interview conducted by author.
18. Kelsey Gee, “In Unilever’s Radical Hiring Experiment, Resumes Are Out, Algorithms Are In,” Wall Street Journal, June 26, 2017.
19. Marcus Buckingham and Ashley Goodall, “Reinventing Performance Management,” Harvard Business Review, April 2015, 40–50.
20. Max Nisen, “How Millennials Forced GE to Scrap Performance Reviews,” The Atlantic, August 18, 2015, https://www.theatlantic.com/politics/archive/2015/08/how-millennials-forced-ge-to-scrap-performance-reviews/432585/.
21. Steven Prokesch, “Reinventing Talent Management,” Harvard Business Review, September–October 2017, 54.
22. Jennifer Surane, “Goldman Sachs Introduces Real-Time Employee Performance Reviews,” Bloomberg, April 21, 2017, https://www.bloomberg.com/news/articles/2017-04-21/goldman-sachs-introduces-real-time-employee-performance-reviews.
23. Don Peck, “They’re Watching You at Work,” The Atlantic, December 2013, https://www.theatlantic.com/magazine/archive/2013/12/theyre-watching-you-at-work/354681/.
24. Prokesch, “Reinventing Talent Management.”