Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.
Yet what IS a network effect? How do we untangle the nuances of … [ Read more ]
Content: Article | Author: Anu Hariharan | Source: Andreessen Horowitz | Subjects: Business Model, Strategy
The guiding principle of business value creation is a refreshingly simple construct: companies that grow and earn a return on capital that exceeds their cost of capital create value.
Content: Quotation | Authors: David Wessels, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subjects: Business Model, Business Rules, Management, Strategy
Companies that link complementary partners, like dating sites or online auctions, can dominate for years or be swept away in an instant.
Content: Article | Author: Dylan Minor | Source: strategy+business | Subject: Business Model
Software is becoming critical for almost every company’s performance. Executives should ask what they can learn from business models employed by software providers themselves—and consider the implications for their IT function.
Content: Article | Authors: Hugo Sarrazin, Johnson Sikes | Source: McKinsey Quarterly | Subjects: Business Model, Strategy
The term “business model” often describes the proﬁt formula used by the company to generate its income. However, we have seen ﬁt to increase the scope of the term business model beyond proﬁt model to include how the company delivers value to the customer and, subsequently, how the company organizes resources and processes to support both its proﬁt model and customer value propositions. External interactions … [ Read more ]
Content: Quotation | Authors: Clayton M. Christensen, Mark Johnson | Source: Innosight | Subject: Business Model