The Next Global Stage: The Challenges and Opportunities in Our Borderless World: Amazon.co.uk: Kenichi Ohmae: Books

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Harvard Business Review's Review of The Next Global Stage

The Next Global Stage:Challenges and Opportunities in Our Borderless World
Kenichi Ohmae
(Wharton School Publishing, 2005)

In the early 1900s, German physicist Werner Heisenberg laid the foundations for quantum mechanics, a set of rules showing that at the subatomic level Newtonian physics was irrelevant. Just as quantum mechanics upstaged Newton, says strategist Kenichi Ohmae, a radical new model is upending old notions about the global economy. In this sprawling book, Ohmae warns that governments, businesses, and leaders that cling to their Newtonian approaches will become irrelevant themselves.

The heart of Ohmae's thesis will be familiar to readers of his previous books, including The Borderless World (1990) and The Invisible Continent (2000): In the new global economy, the nation-state, and the protectionist economic thinking that goes with it, is obsolete. Nation-states have borders, armies, flags, currencies, and a development-stifling instinct to protect their economies from the outside world. As global economic players, they're being displaced by "region states"-borderless centers of vibrant economic activity that welcome global trade and investment, like the Shutoken metropolitan area of Japan and Guangzhou in China.

If the rules of the old economy no longer apply, Ohmae ventures, then neither do the old rules of business. Fair enough. The problem is, he says, no one knows, or can know, what the new rules are: "By the time any rule book or user's manual appears...the 'new rules' will already be obsolete." What business leaders can be sure of, Ohmae argues, is that massive change without requires massive change within. That means wall-to-wall rethinking of corporate mission, strategy, and organization. Companies must cut loose from their "ancestry" and, for instance, compete by selling the very products that threaten them. Clinging to the core, as Kodak did in the face of predation by digital-camera makers, is a recipe for failure in this new age.

Companies must cast off their sentimental attachment to the nation-states where they're headquartered and jettison their hierarchies and old approaches to markets. Their leaders must become visionary facilitators without preconceived attitudes about their roles-ready to embrace even the idea that the best leader may be a team, not an individual. There can be no half measures in this radical transformation, Ohmae says, no testing the waters before taking the plunge.

It's a strong prescription. Unfortunately, this lively book can't, by its own admission, give business readers what they want most: practical advice for competing in the global economy. But it does remind executives to pry their gaze from the present and set it firmly on the future. As Heisenberg well understood, the more doggedly you map where a moving target is, the less you know about where it's headed.

-Gardiner Morse

Product Description

Globalization is a fact. You can't stop it; it has already happened; it is here to stay. And we are moving into a new global stage.

A radically new world is taking shape from the ashes of yesterday's nation-based economic world. To succeed, you must act on the global stage, leveraging radically new drivers of economic power and growth. Legendary business strategist Kenichi Ohmae–who in The Borderless World, published in 1990, predicted the rise and success of globalization, coining the very word–synthesizes today's emerging trends into the first coherent view of tomorrow's global economy–and its implications for politics, business, and personal success.

Ohmae explores the dynamics of the new "region state," tomorrow's most potent economic institution, and demonstrates how China is rapidly becoming the exemplar of this new economic paradigm. The Next Global Stage offers a practical blueprint for businesses, governments, and individuals who intend to thrive in this new environment. Ohmae concludes with a detailed look at strategy in an era where it's tougher to define competitors, companies, and customers than ever before.

As important as Huntington's The Clash of Civilizations, as fascinating as Friedman's The Lexus and the Olive Tree, this book doesn't just explain what's already happened: It offers a roadmap for action in the world that's beginning to emerge.

New economics for a borderless world
Why Keynes' and Milton Friedman's economics are history–and what might replace them
Leveraging today's most powerful platforms for growth
From Windows to English to your global brand
Technology: driving business death–and rebirth
Anticipating technological obsolescence–and jumping ahead of it
Government in the post-national era
What government can do when nation-states don't matter
Leadership and strategy on the global stage
Honing your global vision and global leadership skills

See all Product Description

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4 of 4 people found the following review helpful

Accessibility over accuracy 17 Dec 2005

By Erwin Kuntze

Format:Hardcover

This book belongs to the storytelling genre within business literature, where accuracy and detail are sacrificed to fit into the intended pattern (some of the claimed facts about the Scandinavian/Baltic region were inaccurate). As such, it offers food for thought and serves as an entry point for further exploration into globalization rather than as a manual for policy making.

The book is based on a few themes such as:
* Central government should offer greater autonomy to regions
* The mobility of corporations
* The emergence of a border-less global market

The book starts promisingly but looses steam after a few chapters, with the same regional examples being used as references over and over again. I am happy that I did not stop reading because the book catches up again at the end, offering a couple of interesting future scenarios.

I have read earlier works by Ohmae. Compared to these, this book does not have the same impact, yet offers an accessible account on global trends.

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3 of 3 people found the following review helpful

New strategy frameworks for the new global stage 8 Jan 2006

By Gerard Kroese

Kenichi Ohmae is one of the world’s leading business and corporate strategist. Ohmae was senior partner at McKinsey & Company leading Japan and Asian Pacific operations and has written numerous bestselling books such as ‘The Mind of the Strategist’ and ‘The Borderless World’. This book was first published in March 2005 and consists of three parts, whereby each part consisting of 3-to-4 chapters.

The Introduction explains that this book has been shaped by two forces: “First, it bears witness to changing circumstances… Different times require a new script… The second defining force … is that, over the last 20 years, I have witnessed some of the pioneers of the global economy firsthand.” The following Plot highlights that we now live in a truly networked and interdependent world, united by a global economy, and the author hopes with this book to provide a script to negotiate through the shifting plot lines.

In the 3 chapters of Part I – The Stage – Ohmae looks at some of the areas of explosive growth (“the excessive capital in developed countries is looking for opportunities to breed”) and identifies some of the characteristics of the global economy (4 C’s – communications, capital, corporations, consumers). It then looks back at the birth point of this new era. “For me, 1985 is the annus domini, and the date system I like to use in a light-hearted way is AG and BG – after and before Gates”. The author refers to William Gates, who had established computer company Microsoft which launched the first version of the new computer operating system Windows in 1985. This part ends with an examination of the failure of traditional economics – and economists – to make sense of the global economy. “Let us repeat that the global economy is a reality – it’s not a theory…What we need now is a means of understanding, a theory to make sense of the global economy, stage directions for the global stage.”

The four chapters in Part II – Stage Directions – examine the major trends emerging on the global stage. The opening section of Chapter 4 explores the development of the nation-state (“the most obsolete of these notions in the nation-state”) and the dynamics of the region-state, the most useful and potent means of economic organization in the global economy. “The ongoing development of the global economy will lead to an inevitable undermining of the nation-state in favor of the region.” In the fifth chapter Ohmae introduces the idea of platforms, such as the use of English, Windows, branding, and the U.S. dollar, as global means of communications, understanding, and commerce. “The challenge for all of those operating on the global stage is twofold: to understand the importance of platforms and to be able to utilize them as effectively and as early as possible.” Finally, I explore what parts of the business have to change in line with the emerging economy. These include business systems and processes, and products, people, and logistics.

The 3 chapters in Part III – The Script - provide analysis of how the changes and trends will impact governments (“central governments will find that a lot of their power has gone”), corporations (“the emergent corporation will be homeless”) and individuals. Ohmae also looks at some of the regions that might be the economic dynamos shaping the world beyond the global stage. In the final chapter, the author revisits his 1975-book ‘The Mind of the Strategist’ and thinks through the need for changes in the frameworks we use in developing corporate strategy on the global stage. “the very definition of strategy using three C’s [company, competition, and customers] is no longer valid.” Ohmae introduces the Japanese phrase ‘kosoryoku’ [= something like “vision”, but it also has the notion of “concept” and “imagination”] for developing strategy. First, you describe the vision. Second, you spell out strategy. Third, you develop the business plan. He believes that the mental process for the new type of strategy development is a clear departure from the traditional business school type of teaching of strategy development and in order to develop this type of talent “we need to nurture future business leaders in the same way we develop world-class athletes and artists.”

Yes, this is a very interesting book and highlights some of the main levers organizations can pull to tap into the global economy. It discusses some of the essential new rules that apply and provides readers with an important step forward to approach The Next Global Stage. Although Ohmae provides a decent framework, it still requires a lot of thought from companies and individuals. The author uses his traditional clear writing style to simplify extremely complex subjects into understandable text. I recommended this book to government officials, (global) business leaders and economists.

Kosoryoku: Visionary Pragmatism 5 Jan 2006

By Robert Morris TOP 100 REVIEWER

Ohmae has written a number of books in recent years (notably The Mind of the Strategist, The Borderless World, and The Invisible Continent) in which he identifies and then analyzes what he believes will be significant trends in the near future. In this most recently published book, Ohmae examines many of the same issues while developing his ideas about them in much greater depth. He also explores other global issues whose importance seems to increase each day.

For example, which "radically new rules" are now necessary to achieving success in politics, business, and career. Also, what are "potent new drivers" of growth and economic power and how can they most effectively be leveraged? Also, as the importance of nation states declines, what will replace them? What new strategies and leadership in "the borderless economy" are necessary? Ohmae is uniquely qualified to respond to these and other questions and, in this book, he does so with both insight and eloquence.

As he explains in the Introduction, in its genesis, The Next Global stage has been shaped by two forces: "First, it bears witness to changing circumstances." Cleverly, he introduces the "script" metaphor and suggests that a new one is needed. "The second defining force behind [his book] is that., over the last 20 years, I have witnessed the pioneers of the new global economy firsthand." Indeed he has. Ohmae is now no means the first person to assert that there is a new global economy. Moreover, it made its appearance on the international "stage" years ago and that performance will continue for several more. To me, Ohmae's function is to help the global "audience" (i.e. his readers) realize that his book ":is part of [an on-going] process of understanding the new rules that ap[ply in this new world -- and often, there aren't rules to adequately explain what we now experience on a daily basis. [His book] is not an endpoint, nor is it a beginning, but I hope it is an important step forward for companies and individuals, as well as regional and national leaders."

Ohmae carefully organizes his material within three separate but interrelated Parts: The World Tour, Opening Night, and The End of Economics. He introduces and then reiterates a number of key points.

1. Begin with a precise definition of mission.

2. Next, formulate an appropriate strategy.

3. Then develop a business plan that spells out the nature and extent of human and capital resource allocation.

4. Finally, develop a time frame for implementing that plan.

Although Ohmae is obviously excited about the new opportunities created by the new global economy, he clearly recognizes (and identifies for his reader) the new problems and barriers which must be overcome to achieve success in that economy. To me, Ohmae has always seemed to be both a visionary and a pragmatist.

His discussion of the Japanese phrase kosoryoku offers an excellent case in point. "The is what you need in developing strategy. Kosoryoku is something like 'vision," but it is also the notion of "concept" and "imagination"...It is the ability to come up with a vision that is necessary and, at the same time, implement it until it succeeds. It is a product of imagination based on realistic understanding of what the shape of the oncoming world is and, pragmatically, the areas of business that you can capture successfully because you have the means of realizing the vision."

I strongly recommend this book to decision-makers who have a compelling need to understand the new global economy, the coming shape of the geopolitical maps of the future, the key levers that can "pull" their organizations through to eventual success, and the dynamic business business domains within which there is the greatest promise of that success. Once you have absorbed and digested the contents of his book, Ohmae concludes, "Now it is your turn to climb onto the the global stage and perform."

Meanwhile, I offer to Ohmae both "Bravo!" and "Encore!"