7gen Bloc

I was not a fan of The Fortune at the Bottom of the Pyramid, the book that catapulted C. K. Prahalad to international fame in both traditional and responsible business circles.

The book was much too excited at the prospect of using our short-sighted capitalistic model to sell little packages of laundry powder at reduced prices to poor people who probably don't need them. Such a strategy, it seems to me, only spreads the disposable culture that's so prevalent in the developed world. Rather than treat the poor as consumers, business would be better served by helping them become producers. Instead of selling them micro-packets of facial tissue, companies might provide them with lines of micro-credit, so they could take the first step toward becoming entrepreneurs. Rather than pitch them tiny packets of deodorant, companies might help them put in the sweat equity to launch their own businesses. A thriving "producer" would then have the means to become the reliable consumer that most businesses seek. That would build real markets at the bottom of the pyramid.

But Prahalad's new book, The New Age of Innovation, written with M. S. Krishnan, sounds much more promising. The book, which was recently reviewed by the Financial Times, focuses on two powerful trends that every business must reckon with: "First, the age of mass production is over. Customers demand unique value, and businesses that supply it are winning out over those that do not. 'Value is shifting from products to solutions to experiences,' say the authors. Relationships are taking over from transactions as the central element of exchange. Building customer relationships means understanding customer needs -- even if you have millions of them scattered around the globe."

And then there's the second critical trend: "No one business is big enough to achieve this. So, instead of seeking to control resources, companies should be using alliances and networks to gain access to resources, regardless of who owns them. Rigidly structured value chains and supply chains are a thing of the past. Instead of chains, managers should build constellations of suppliers that can be reconfigured in different patterns to meet different needs."

The review sold me on giving C. K. Prahalad a second try.

If you've read a book that you think other Inspired Protagonist readers would enjoy, please let us know.