An interesting article about the need for new business models

There was an interesting article in VentureBeat by the former president of Newsweek about the need for new business models.

http://venturebeat.com/2011/04/12/how-to-start-a-business-that-defies-traditional-models/

Here are some advices:

Don’t assume that a new model is the only way to go – Be sure your company actually needs, or would benefit from, a new business model. Even in a changing environment, your business opportunities may be served better by altering an existing model.

Don’t overestimate the changes – Change happens incrementally, so even though you may be moving in a new direction, your model still needs to be anchored historically.

Don’t allow “trying for great” to destroy the good – Just because you are building a new model, focus on the low-hanging fruit before shooting for the stars. Many of the first iPad apps, for example, were dizzyingly digital but slow to download and hard to use. Sales dropped dramatically after the initial excitement as a result.

Build flexibility into your model – It’s always good, for example, to overestimate the time it will take to achieve your goals. Like software, it always takes longer and costs more than anyone could have imagined at the beginning.

Expect competition – If you are going to eat your competitors’ lunch, they will notice – and will try very hard to prevent you from doing so. Build competitive response into your model.

Finally, ignore the critics. There will always be someone who doesn’t understand what you are doing, or doesn’t want to understand. But, they will have an opinion. Once you have launched your plan, stick with it until you know it is working or it just cannot work. Don’t give up too soon.

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com