Any time I have a chance to share my story to a good listener, I get to reinterpret the narrative thread that ties it all together. The story I would have told you of, say my Apple work experiences at age 25 would be different than the stories I will pull out now after nearly More
Tag Archives | Business Model
Public statements notwithstanding, more business plans in Silicon Valley are built around technology than around customer relationships. It’s just the way it is; we’re talking about technology companies, right? The problem is that, given time, all technology either becomes obsolete or a commodity. With the increasing pace of technological change, this is happening sooner rather than later. The risk in building on technology rather than customer relationships is that you are never more than a wrong turn or two away from putting your business survival at risk. Customer relationships provide your business with more options, and strong relationships can be very forgiving of the occasional misstep, meaning your business is more resilient and your plans can be bolder. Further–and perhaps even more important–technology-centric business models limit your offerings and growth potential, so they are associated with lower valuations over the long term.
That is why MSFT is going to have a tough time competing with Google…MSFT is a beautiful piece of software…too bad it isn’t a harbinger of a beautiful business model for the future.
Technology businesses come and go, but as a category VARs are the survivors of the technology world. A couple of years ago an editor asked me if SaaS was going to kill the channel. At the time, it was too early to tell exactly what was going to happen, but I expressed confidence that VARs would survive as an important channel, even if they had to evolve in significant ways.
Facebook now will give advertisers the ability to create their own profile pages on its system that will let users identify themselves as fans of a product. Let’s users (and the advocates amongst those users) show their beliefs, feelings, perhaps even needs. And with it, brand owners would choose to place their advertising dollars here as compared to the other companies.
Last year I wrote about the communication gap between the saas (software as a service) and web application communities. The quick summary of the gap is that they’re both dealing with the same technologies — hosting an application on a server and accessing it over the Internet — but from completely different perspectives and even More