Business model innovation is as important as Technology innovation in surging ahead of competition. A recent McKinsey study identifies EIGHT Business Technology trends that can potentially transform Businesses. These trends fall within three broad areas of business activity:
Managing relationships
- Distributing Co-creation: Decentralizing innovation. Eg: Like LINUX was developed. Such models to extend to the creation of physical goods as well.
- Using consumers as innovators: Eg: Like the knowledge resource Wikipedia. This model to extend to industries as diverse as Fashion and Apparel. Internet, Web 2.0 technologies to play the enablers.
- Tapping into a world of talent: Integrate and manage the work of an expanding number of outsiders. Opens up many contracting options for managers of corporate functions. New talent deployment models to emerge.
- Extracting more value from interactions: More efficient tacit interactions. Smarter and faster ways for individuals and teams to create value through interactions—that will be difficult for their rivals to replicate.
Managing capital and assets
- Expanding the frontiers of automation: Interlink “islands of automation” and give managers and customers the ability to do new things.
- Unbundling production from delivery: Disaggregating monolithic systems into reusable components. Raise utilization rate of capital and therefore RoIC. Offers access to resources and assets that might otherwise require a large fixed investment or significant scale to be competitive.
Leveraging information in new ways
- Putting more science into management: Getting into the skin of customers. Eg: Google's internal market for ideas. Intel's 'prediction market'. Amazon's CRM abilities.The quality and quantity of information available to any business will continue to grow explosively as the costs of monitoring and managing processes fall.
- Making businesses from information: 'Information is wealth'. Exploit imperfections in the market forces. Eg: Real Estate market.
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