Speed Trap 05 31 16 - Thomas R. Eisenmann
The document examines how internet‑enabled firms can structure their online operations and make strategic decisions amid fast‑moving, high‑risk markets. It distinguishes three archetypal organizational models – the “dove” (tight integration with existing offline units), the “hawk” (separate, autonomous online unit delivering a new value proposition), and a hybrid “better mousetrap” approach that blends both. The text discusses the cannibalization dilemma, compensation design, and governance mechanisms such as tracking stocks, illustrating each model with real‑world cases (e.g., Staples.com, Ticketmaster, DLJdirect). It then shifts to strategic management styles, contrasting top‑down CEO‑driven planning with bottom‑up decentralized experimentation, outlining their respective advantages, drawbacks, and the cognitive biases that can impair CEOs. The role of the board in supervising CEO power, ensuring constructive conflict, and selecting capable leaders is also explored. Throughout, the author stresses the need for rapid, rigorous decision‑making, real‑time information flow, and cultural norms that balance speed with disciplined analysis.
Topics
Dove Strategy: Integrating Online with Offline Channels
An organizational model where the internet unit is embedded within the existing brick‑and‑mortar division, sharing marketing, service, reporting, and cost structures. Emphasizes tight coordination to leverage offline assets while extending the brand online.