Changing strategy reality

This video shows extremely well why companies just not need to do more of the same (MOTS) since it leads to more clutter. More clutter in features, more clutter in products, more clutter in advertising, more clutter in PR messages, more clutter of everything.

In this strange world of more of everything simplicity and clarity in your business model helps to find real differentiation, not just little differentiation but radical. Differentiation in the image, the message and the product helps but business model innovation where you create a fresh business model that is based on fresh customer insights is one key to reach this needed radical differentiation.

Enjoy the video by Scholz & Friends.

This video is particularly funny for all Germans that were socialized by the brands mentioned on the side line. Think that we have only limited brain capacity for each product category.

Amazon’s Kindle and new business models

Amazon recently introduced the new Kindle 2, a wireless reading device for books or an e-reader. While the German publishing industry at best sees the Kindle as a new distribution channel [update: link no longer available] for its current content and some even complain about the high cost of ebooks the Americans start thinking about what new things you can do with the Kindle.

That is a typical reaction for a technology that might change the existing business model, in this case the book publishing industry. The traditional way of thinking is how does the new technology perform compared to the existing technology. And from that point of view the Kindle is not as good as the paper book. Continue reading Amazon’s Kindle and new business models

Business Model Innovation and the Red Queen Effect

The blog is about business model innovation or innovation in strategy, some name it strategic innovation. The point is very simple. Most companies try to differentiate themselves from their competitors by better products or improved processes leading to a better cost structure. The problem is that their competitors do the same thing at the same time so after a firework of new products the situation is pretty much the same. You moved forward but your competitor also moved forward. If you do not move you fall behind.

This effect is also called the Red Queen effect. The term is taken from the Red Queen’s race in Lewis Carroll’s Through the Looking-Glass. The Red Queen said, “It takes all the running you can do, to keep in the same place.” That is the typical situation most companies find themselves in. You move, you move but you gain no competitive advantage. Continue reading Business Model Innovation and the Red Queen Effect