Post on 11-Apr-2017
The five stages of business evolution
Your business is built around a set of assets
Your business is built around a product portfolio
Your business is configured to address a collection of customer segments
Your business is designed to address needs of individual customers
Mass production enables the creation of cheaper products
Supply networks enable the creation of a richer product portfolio and improve customer choice
The internet, smartphones, “Big Data” and “The Internet of Things” enable the creation of products targeted at individual segments in support of a customer lifestyle
Low cost manufacturing and distribution – the start of the post-industrial age – enable the creation of bespoke solutions for individual customers
1 2 3 40
Preindustrial, craft-based
Business is a fundamentally local affair, aside from the exchange of small, high value, durable goods
Driven by the development of new ideas
Supply Chain Disruption The development of cheap and effective supply chains enabled the creation of a greater range of products and more options for customers
Information Disruption (Also known as “digital disruption”.) Digital technology enables us to collect and analyse enough data to sense and address the needs to generic customer types (segments)
Social Disruption The shift in the balance of power from firm to consumer, from large to small, moves industry of a push-based business-centric model, to a pull based consumer-centric model
Production Disruption The development of manufacturing technologies (steam engines, looms, etc) and production systems (production line) shifts the focus from labour to capital
Your focus shifts at each stage
Build infrastructureProvide products and services Fulfil needs Enhance life
You invest in the assets to extend the range and efficiency of your operations
You develop innovative new products and then bring them into the business to reduce costs and improve distribution
You identify new segments and then transform the business to move it to the new segment
You address unique customer contexts with a unique collection of services
You develop your skills and a reputation for quality based on personal relationships
Craft and quality