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The strange business model of airlines

The airline business is a strange business and in desperate need for business model innovation. On the one hand, more people fly than ever to prices lower than ever. IATA, the industry body, states that the real cost of travel has fallen in the last 40 years by about 60% and the number of travelers increased tenfold. Air freight has…

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What business are you in? Business models as social constructs

“What business are you in?” sounds like a simple question. But it’s not. How you define your business determines which direction your firm can go. Based on your answer, you define and limit your strategic options. In a company, the business model is defined by a dominant group of people. They have a common understanding of what business they are…

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Trust, Bankers and Soldiers of Fortunes – You get what you pay

The Swiss private banks are under pressure to change their business model. It is not just pressure from other states that want to fight tax evasion via exchange of information on bank customers but also from employers that try to sell stolen customers’ data  to foreign governments. The big news in Switzerland is that an informant, crook or thief –…

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Design thinking, Ideo and disruptive business model innovation

To be honest, I get a bit bored about the mantra that design thinking will solve the problems of large corporation. Well, when I go through the case studies at Ideo I am extremely impressed by their client list but not about the output. I have seen several design thinking sessions and I am not impressed at all with the…

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Culture and the Business Model: We are humans

In the discussion on business model innovation an important point is missing: the culture in which the business is conducted. A business is all about people “creating” customers. Businesses are not a technical machine with input and output factors. Businesses are places where human beings work together for a common goal and therefore the culture in a business is a…