Archive for the ‘Business models’ Category

Abundance and open source business models

Saturday, December 1st, 2007

Matt Asay: “[F]ocus on maximizing abundance, and then sell value around minimizing the complexity inherent in abundance.. The old model was to assume that the value was in the software itself and to therefore lock it up. It turns out, however, as Tim O’Reilly notes, that data is the real value, not bits and bytes. You don’t discover or, rather, uncover, that value until you have abundance.”

The Wi-Fi business model: Like air conditioning—or pay toilets?

Sunday, March 4th, 2007

New York Times: “WI-FI service is quickly becoming the air-conditioning of the Internet age, enticing customers into restaurants and other public spaces in the same way that cold ‘advertising air’ deliberately blasted out the open doors of air-conditioned theaters in the early 20th century to help sell tickets.”

The times they are a-changin’

Sunday, February 25th, 2007

Yochai Benkler: “I find myself talking to all sorts of weird hackers one day and chief economists of major corporations the next day, and they’re all interested in similar things.”

Microsoft and the innovator’s dilemma

Friday, February 23rd, 2007

Henry Blodget: “Google’s current offerings–Gmail, Docs & Spreadsheets, etc.–bear all the markings of a classic disruptive technology. As Harvard professor Clayton Christensen observed, disruption begins when a dominant market leader has built so much functionality into its core products that it has begun to over-serve its core customers. Some of these customers, realizing that a simpler, cheaper product will do, abandon the old technology. At first, this does not concern the incumbent, as it maintains a chokehold on the highest margin business–the high-end customers who need most of that complicated functionality and support. But, gradually, as the lower end product gets better, and the incumbent is forced to migrate to even more complex and expensive solutions, more of the overall customer base defects. And, then, voila, one day the incumbent wakes up and discovers that it is DEC, Sears, or AOL…and by then it’s far too late to do anything about it.”