Business models have shifted over time. Each time models shift the practice and processes of management have 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. media and price.
Price was influenced by the markets efficiency of the delivery and value created. 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 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. However, advertisers are repeating old methods of “pushing” their message rather than “pulling” consumers to them.
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 following business categories:
- Advertisers are being forced to learn how to become conversational.
- Marketing : Brands are being forced to learn how to be social
- Technology: enhancements are accelerating faster than the average user can keep up
- Communications: New mediums and an increase in communications is flourishing.
- Industry specific initiatives: Many brands and entire industries are running to social media to improve customer loyalty and brand awareness.
- Media : Many media companies are just now recognizing the influence of citizen journalism
- Financial: New methods and innovation are flipping economic models on their heads
- Telecommunications: Social networking applications are proliferating the decks of mobile handsets globally.
- Your World : More adults are jumping into and learning the value attributes of social media.
- You : Directly and indirectly we are all being influenced by these dynamics.
All of these dynamics collectively are pointing to 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 a reversal of the traditional system. It supplies technology and conversations to nurture innovation. 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, now they happen at the click of a mouse. 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?