Five Reasons Companies Fail at Business Model Innovation – HBR
Monday, 16 February, 2015 Leave a comment
We have become so used to the idea of standards as a good thing that we tend to apply them in the wrong places. For example, consider the idea of a “best practice.” The concept of a best practice assumes that there is one ‘best way” to solve a problem. It assumes that every problem can be isolated from its context, and a single best way of solving it can be described and shared. Unfortunately, this has caused a lot of problems in the business world, because it’s impossible to isolate problems from their contexts.
A system is not just the sum of its parts. What makes a system work is not the parts in isolation, but the interactions between them, and the inherent tradeoffs that must be made to achieve different kinds of system performance…
Several years ago when I first read these words from Clay Shirky they really resonated as far as my own industry [insurance] was concerned.
“It is easier to understand that you face competition than obsolescence”
In the intervening period a great deal has changed…not necessarily for the better. But too much has remained the same. As I read recently “Nowadays, competition is mainly taking place between business models rather than just between products and services…”. It is true.
Business models that are unsustainable but still function in the current environment, are now showing the outward signs of frailty. Fragile businesses lack the agility to adapt for survival in a post-critical financial landscape.
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