Irving Wladawsky-Berger Blog: A collection of observations, news and resources on the changing nature of innovation, technology, leadership, and other subjects.
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It's All About the Business Model, - Not the Technology
In Reinvent Your Business Model, his recently published book, Mark Johnson argues that digital transformation and business model innovation are not the same thing. New technology alone, - no matter how transformative, - is not enough to propel a business into the future. The business model wrapped around the technology is the key to its success or failure. Johnson is Senior Partner in Innosight, the strategy consulting firm he cofounded with Harvard Business School professor Clayton Christensen in 2000. He’s been conducting research on business model innovation for over a decade, and in 2010 published Seizing the White Space.
Business model innovation has long been the domain of disruptive startups looking to compete against established companies by changing the rules of the game, - and, hopefully, creating new markets and reshaping entire industries. But, it’s no longer enough for established companies to just roll out improved products and services based on their once-reliable business models.
“Building a great business and operating it well no longer guarantees you’ll be around in a hundred years, or even twenty,” notes Johnson. “In 1965, the average length of time a company remained on the S&P 500 was thirty-three years. By 1990, it had dropped to twenty years; in 2012, it was just eighteen. Based on the 2017 churn rate, it is forecast that half of the S&P 500 will be replaced over the next ten years.” .... '
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