The Transformative Business Model

The Transformative Business Model

By: Stelios KavadiasKostas Ladas and Christoph Loch

We usually associate an industry’s transformation with the adoption of a new technology. But although new technologies are often major factors, they have never transformed an industry on their own. What does achieve such a transformation is a business model that can link a new technology to an emerging market need.

MP3 technology is a classic case in point. Early MP3 devices represented an order-of-magnitude increase in capacity over magnetic tapes and CDs: Users could carry thousands of songs on a small device. But MP3 players revolutionized the audio devices market only after Apple coupled the iPod with iTunes in a new business model, swiftly moving music-recording sales from the physical to the virtual world.

What, exactly, enables a business model to deliver on a technology’s potential? To answer that question, we embarked on an in-depth analysis of 40 companies that had launched new business models in a variety of industries. Some succeeded in radically altering their industries; others looked promising but ultimately did not succeed. In this article we present the key takeaways from our research and suggest how they can help innovators transform industries.

Read full story: https://hbr.org/2016/10/the-transformative-business-model

 

Follow ScipreneurFollow on FacebookTweet about this on TwitterFollow on LinkedInPin on PinterestEmail this to someone
0
0
Share Now
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
Scipreneur Private Limited
About Scipreneur Private Limited 557 Articles
“Scipreneur” is a combination of two words; “Science and Entrepreneur”. Scipreneur provides a bridge to connect various ventures, businesses, researchers, and service providers. We also publish news and current advancements in the science that has a strong potential to enter the market.

Be the first to comment

Leave a Reply

Your email address will not be published.


*