Business models have shifted over time. Each time models shift the practice of management has to shift as well.
Current business models follow a linear path of production and service. At the end of all the connected business processes is the customer, the markets and the ultimate economic transaction. In this model the customer was at the end of the “system” receiving products, services, media and price.
Price was influenced by the markets and the efficiency of the delivery system.Most of today’s business minds are viewing the social web in the framework of the old systemic design of a business, with the customer at the end. However, the social web does not lend itself very well to old business models rather it is an inverted systemic flow which starts with the customer and flows backwards.
This dynamic is just now starting to create rippling effects throughout traditional markets and business models. The dominant response has initially been from advertisers trying to reach consumers in a more direct way and with demographic affinity to their brand.
The emerging shift in business flow will require businesses to make shifts in their thinking in order to both maintain and gain new customers, markets.
Shifts are happening in the follow business categories:
- Advertisers are looking for new methods and models that reach target audiences.
- Marketing : Brands are looking for and adopting new channels for marketing.
- Technology: Technological enhancements are accelerating faster than the average user can keep up.
- Communications: New mediums and an increases in communications is flourishing.
- Industry specific initiatives: Many brands and entire industries are running to the social networking mediums to improve customer loyalty and brand awareness.
- Media : Many media companies are just now recognizing the influence of social networking on traditional media methods.
- Financial: New methods and models are being developed to create economics out of new services and products offered.
- Telecommunications: Social networking mobile applications are proliferating the decks of mobile handsets globally.
- Your World : More adults are jumping into and learning the value attributes of social networking.
- You : Directly and indirectly we are all being influenced by these dynamics.
All of these dynamics collectively are pointing to the potential of significant disruption for those unprepared or unaware. The impact of these dynamics will create strategic shifts for all business models and means. The old strategies are no longer relevant, the new strategies are dynamic and emerging moment by moment. However there is a macro landscape of strategic issues that provide the basis of thinking, or rethinking, about business models. The big will have a different kind of bigness.
The Relationship Economy encourages the middle space. It supplies technology to nurture mid-sized wonders. Being able to grasp these dynamics is critical to effective strategic thinking. These dynamics are shifting weekly and in the past changing business dynamics occurred two to three times a year at most. The dynamics cut across all dimensions of life as we’ve known it and new dimensions and a new reality is forming before our eyes. To ignore these dynamics could mean peril to those unprepared……sooner than later.
What say you?