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In this podcast, C.K. Prahalad, author of The New Age of Innovation: Driving Co-created Value through Global Networks, and Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, talks about how CIOs can use innovative technology to reshape their company's business model, as well as drive new opportunities for poverty-stricken areas. (He calls the latter the bottom of the pyramid.)

Despite the downturn in the economy, this is a great time to be a CIO or CTO. That's the conclusion from C.K, Prahalad, the Paul and Ruth McCracken Distinguished University Professor of Strategy and the author of best-selling management books such as The New Age of Innovation: Driving Co-created Value through Global Networks, and Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. He says, "Because some CIOs must work under the pressure of shrinking budgets and don't have much time for innovation, this might be a tough concept for some CIOs to grasp."

Prahalad lists four fundamental drivers that can create new opportunities for all kinds of businesses - everything from retailing to financial services to manufacturing. These drivers include the convergence of technology, convergence of industry boundaries of technology, the emergence of social networking, and the globalization of things such as the global supply chain, global markets, and global research and development in third-world countries.

He says, "Convergence of technology is all around us. For example, the cell phone and the PC are now merging into one device. We're seeing a dramatic reduction in the cost of digital technology. Social networking sites such as Facebook didn't exist five years ago. Meanwhile, many companies have taken advantage of global opportunities by expanding to new markets in China and India."

In this podcast, Prahalad provides specific examples of how senior IT executives can address new business opportunities for their companies, how new technology initiatives can drive business opportunities at the bottom of the pyramid, why companies should embrace the concept of open innovation, and what the CIO role will be like 10 years from now.

Bio
C.K. Prahalad is the Paul and Ruth McCracken Distinguished University Professor of Strategy at the University of Michigan's Ross School of Business and a globally recognized management thinker. He has consulted for the top management of many of the world's foremost companies, such as Ahlstrom, AT&T, Cargill, Citicorp, Eastman Chemical, Oracle, Phillips, Quantum, Revlon, Steelcase and Unilever. Prahalad serves on the board of directors of NCR Corporation, Hindustan Lever Limited, and the World Resources Institute.

His best-selling management books include The New Age of Innovation: Driving Co-created Value through Global Networks, Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits (rereleased in 2009), The Multinational Mission: Balancing Local Demands and Global Vision (co-authored), Competing for the Future, and The Future of Competition: Co-Creating Unique Value with Customers. He has authored numerous award-winning articles, several of which won Harvard Business Review McKinsey Prizes. Other prizes include European Foundation for Management Award in 1993, 1994 Maurice Holland Award as the Best Paper, and the 1997 ANBAR Electronic Citation of Excellence.

Resources
C. K. Prahalad Talks about How Changing Business Models in the New Age of Innovation Will Impact IT, Enterpriseleadership.org
http://www.enterpriseleadership.org/blogs/Articles/2008/07/23/c-k-prahalad-talks-about-how-changing-business-models-in-the-new-age-of-innovation-will-impact-it

C. K. Prahalad Talks about Business Models Driving the New Age of Innovation, BTM Institute
http://www.btminstitute.org/LeadershipInsight/CKPrahalad.html

How Strategy Guru C.K. Prahalad Is Changing the Way CEOs Think
http://www.businessweek.com/magazine/content/06_04/b3968089.htm

Production Credits
Elizabeth Ferrarini, Executive Producer
Tom Parish, Host and Audio Producer

Audio Editing by Doug Marcis