Social business models

26 Nov

The business model of a company is usually hard to change and slowly to adapt to the changeable market. However, now business models must be fast, fluid and flexible in order to survive in the competitive market. Getting the organizations out of the obsolete business models is a big challenge for the 21st century people. With the objectives changing, companies have to update their management.

The following table illustrates the changes in the business environment. “Leadership” has changed when a decentralized group of people can take down a government. “The Value Chain” has changed when the customer is no longer just the “buyer” but also a co-creator. “Human Resources” have changed when most of the people who create value for your organization are neither hired nor paid by you. “Competition” has changed when individuals can create value through a centralized network of resources: for example, designing a product from anywhere, producing it through a 3D factory, financing it through community and distribution from anywhere to anywhere. Yet our business models have not changed to keep pace with these shifts. Here’s a quick visual summary of what has changed so far:

There are now more and more companies communicating via social media, while few can turn theory into reality. To achieve this goal, companies have to make their business model fast, fluid and flexible.




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