Khary Scott

E Business I

Section C

Book Review: Unleashing the Killer App

Unleashing the Killer App primarily focuses on technological strategies within each market that will completely redefine it. The book begins by defining Moore’s, Metcalfe’s and Coase’s laws regarding computing power, network capacity, and their relative destructive forces. Killer App focuses on Internet related strategies and how it has completely revamped traditional industries.

There were two key learnings I gained from Killer App. The first was the reduction of transaction costs as they relate to traditional line industries. The book’s example of the six types of transaction costs: search, information, bargaining, decision, policing, and enforcement costs are all potentially reduced or eliminated through pooling on the Internet. This strategy is particularly interesting because it is yet to be determined that this can be done profitably for all parties involved. The purchaser of said goods appears to be getting lower cost of goods, but the suppliers are going through significant back end infrastructure related issues that has them operating in the red.

The second key learning is the actual creation of the Killer App. Companies are using the Internet to disintermediate markets and cause old-line companies significant financial strife (Amazon v. Barnes & Noble). However, the book falls short in its laying out a strategy to profitability. Killer App gives an example of British Petroleum using kiosks to circumvent German laws regarding supermarket sales hours and putting significant pressures on competitors. This illustration provides a clear path to profitability. Yet, in the Internet age, while it has been proven dot.com companies can put significant pressure on traditional industries, it has not been proven profitable.

In conclusion, the main takeaway from Unleashing the Killer App may be that traditional line businesses should incorporate improved technologies into their main line businesses. In essence, cannibalize themselves before upstart companies lacking sustainability negatively impact their business.