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Business model design trumps product design for value creation

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At the Dots conference last month, Mark Earls gave some fresh takes on his favourite theme – humans-as-copying-machines. The best way to come up with something new, he showed, was to copy someone else, or something else. You come up with something new because, in the process of copying, you make errors.

He went further, arguing that one of the best things to do was “copy from far away” – from another field of endeavour, another country, another industry.

On the FT a week later there was an article about how new business models disrupt industries

…Apple became the biggest music retail seller without selling one CD; Netflix reinvented the video business without operating a single video store. Google continues to attack new industries with its data-based services and devices; Google’s products from glasses, to self-driving cars to smart thermostats are just a means for increasing and leveraging Google’s data-based consumer insights.

Of course, none of the business models are new, they are just copied from other industries. Copied from far away. Like Nestlé copying the Gilette razor-blade business model to sell Nespresso pods (pricing coffee at £60 a kilo).

Here’s a video of the whole interview…

 

By Antony Mayfield

I'm Antony Mayfield - to find out more about me take a look at my LinkedIn profile (see the button on the home page). You can contact me by email at antony [dot] mayfield [at] gmail [dot] com.

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