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Design   -   simulation  -  modeling   -  media - architecture   -  thought patterns  -  prototyping - intellectual property

The Growing Significance Of Business Model Innovation

"Somewhere out there is a bullet with your company's name on it. Somewhere out there is a competitor, unborn and unknown, that will render your business model obsolete. Bill Gates knows that. When he says that Microsoft is always two years away from failure, he's not just blowing smoke at Janet Reno. He knows that competition today is not between products, it's between business models. He knows that irrelevancy is a bigger risk than inefficiency. And what's true for Microsoft is true for just about every other company: The hottest and most dangerous new business models out there are on the Web."                  Gary Hamel and Jeff Sampler in Fortune Magazine December 7, 1998. 

Our Innovations Give You A Definitive Edge - Knowledge-Based Business Model Inovation


We are increasingly immersed in a knowledge-based global economy. In previous economies, original business models have been created as business people sought new ways of delivering value to customers. Business models such as time-sharing, outsourcing, leasing, franchising, did not always exist, but were creative new inventions. Today, competition as several leading business strategists have argued, is not just a matter of product competition. Increasingly, the battle is between competing business models. So in many ways, business model invention, development, and adaptation, is a core competence for serious corporations. Especially in the global knowledge-based economy where competition is internet-time paced, a facility and understanding of knowledge-based business models can become a great asset, and the lack thereof, a serious liability. It is therefore curious and lamentable that in the knowledge management literature there is not more serious attention to this important subject. In our work we come to grips with this gap and deficiency, and advance a powerful new strategy framework. One that can enable senior executives to systematically engage in superior, if not "killer", knowledge-based business design, creation, articulation, refinement, enhancement, and deployment. 

We have been developing new thoughtful frameworks for constructing the knowledge-based business. The intellectual tools we have developed form together a heuristic device for imagining future possibilities and scenarios. We have isolated 15 components which any self-respecting knowledge-based business should be built with. Just as any building has to have key components, a foundation, windows, doors, framing, plumbing and so on. Similarly, any knowledge-based business has to have what we refer to as the 15 C's, which in our view include :-

Models for the business concept, customer, commerce, community, content, communications, coordination,computerization, context, complexity, collaboration, connections, change, cognition, culture.

Within each model we have isolated known patterns which represent options on a choice-board which the business strategist can examine. To our way of thinking this is a much smarter and more intelligent way of developing a coherent blueprint for the successful knowledge-based business. Our approach is also more ecological than mechanical. It  also provides a powerful tool for rapidly deconstructing the business model of an existing knowledge oriented business and finding its flaws. This is also a complement and companion to our knowledge pattern recognition playbook. see

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This Page was last updated April 2006
Copyright. 2006. The Kaieteur Institute For Knowledge Management.