Successful businesses are not just about product or service offerings, but about the change they bring in the way customers get the things done. This is accomplished by changing the DNA of the business and the approach is called Business Model Innovation. A case in the point is the software development industry.
There are not hundreds, but thousands of startups, who offer software development skills and solution. Alas ! most of them have the same way of doing business. So no wonder, all look alike and fall into the same set of problems that undifferentiated companies in rapidly commoditized market fall into. It is not that there is not enough space for large number of companies and skills; but there is definitely not enough space for all these companies, who have the same business model. By definition, for a company to sustain and grow today as well as in tomorrow, it is important that it offers benefits of an order of magnitude to its clients, that no other supplier can offer easily. Only then clients will continue to come to give business. Further, the market pressure, specially in the highly focused US market, is forcing organizations to rethink, their rationale of creating, delivering and capturing value. Business model Innovation is now a systematic process that allows organizations to stand out under such situation.
Here is an illustration on how some software development companies are innovating their business.Business-Model-Innovation-for-Startups-in-Software-Development
Also available at Scribd.
31 March 2014