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Its odd, but true. Really. Many companies suffer because they did not evolve their business models at the right time.
We’ve heard of companies that fail very early on, in the startup phase, because of lack of a strong business model primarily. But, in current day and age, it is not enough if you’ve made through that phase. In the face of competition, first mover advantage is restricted to very few domains. Certainly not software.
Its essential that company evolves its business model, considering the state of economy, political structure and basically the environment. Many companies make the perennial mistake of sticking to their assumed strength for too long. Yes, I don’t mean to say that one should not value their core value proposition, I’m saying that one needs to continuously keep evolving it.
It’s about continuing to innovate in every means possible, and building that innovation around your core abilities.
When companies get bigger, they tend to be more focussed on their core abilities, simply because it is difficult for them to innovate and grow at the same time. Hence we see a trend that most innovation come from smaller players, who have little to lose and are willing to go that extra mile to build something that breaks the predefined rules. And naturally, bigger companies are found wanting.. playing the catch up game in the competition.
Recently, there has been lot of movement in this space. Many companies have tried to redefine themselves. Companies that have always been very traditional about their business models are getting out there and trying newer things. It is for the benefit of everybody. Those who are not doing it, they better have a very good reason for not doing so.