Your Business Model Won't Last

Andrew Rieser
By Andrew Rieser | President and Co-Founder, Mountain Point
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"It used to be that a CEO could maintain the same basic formula for creating, delivering and capturing value for his entire career. Now, it’s unlikely to last a decade. What’s more, the cycles are shrinking and returns to scale are diminishing."- Greg Satell

There are articles all over the Internet with the same reoccurring theme: the status quo is unsustainable!

A good article I recently read outlines the 4 Ways In Which Technology is Transforming Business

To quickly paraphrase this article the 4 elements are:

    • Technology Moves at an Exponential Pace

It’s become clear that technology shifts can radically change time-honored business principles. Informational content of our products and services is driving this change.

    • Scale Advantages have Diminished

The idea used to be scale meant safety - doing business with a large stable company meant that you could be sure that they would be around next week and could stand by their promises. However, scale now provides little insulation to disruption.

    • Business Models don't Last

The practice of management was mostly focused on execution. If you could move men and material efficiently, buy for a dollar and sell for two, you’d be successful, sometimes enormously so. This is no longer the case, we all have to adapt. To embrace the future, we must, in a very conscious way, let go of the past and move from a planning mentality to one that integrates skills and information in an emergent context - a strategic shift.

    • The Lunatics Run the Asylum

Successful companies are characterized by their top management; however, company performance is often most determined by the lowest common denominator. Good managers realize that, in reality, they make only a handful of consequential decisions per year. The rest of the job entails enabling the actions of others - the lunatics running the asylum.

Topics: Digital Transformation

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