Sunday, December 9, 2007

Technical Revenue: Your business model called; its leaving (and its not coming back)

Paul Tyma has a nice little piece on how business models die (eg CDs /music), but the encumbants keep on trying to flog the dead horse, because they're so used to it and they liked playing by their own rules:


Technical Revenue: Your business model called; its leaving (and its not coming back)


Well, Chesbrough and Rosenbloom found in their research at Xeros that success can make it difficult for organisations to introduce new business models. See "The Role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies" in Industrial and Corporate Change v11, n3, pp529-555.

The old framework remains, the culture is built up and the size and inertia make it difficult to see the world differently.

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