New Business Models for the New World
I write my blog mostly because I enjoy writing on the topics I cover. But I have noticed an interesting side-effect which is starting to bring home to me the power of electronic media and blogs.
I never thought that the effect will be so direct, immediate and measurable, but I notice it every time! Whenever I write a new blog and share it with my audience, I notice a significant spike in the sale of my recent book The 5-STAR Business Network.
Not being a marketing or sales professional, till now I was only aware of the link between the positive online word-of-mouth and online sales of products. For the first time in my life, I can actually see this link visibly and tangibly demonstrated in practice. Many of you who are more familiar with online sales and marketing, social media and such channels will regard my amazement with a touch of ‘of course we know it’.
In my book The 5-STAR Business Network I talk about how the old business models have changed due to globalization of supply chains, morphing of business entities into interlinked business networks that act in cohorts, and application of newer technologies such as internet, nano-tech, and others to old business models. Most companies that are thriving today, and others that are building a platform for thriving into the next few decades are all making use of this major upheaval in business models to create transformative changes in their industries, and sometimes into adjoining industries. For example, see how Amazon is gradually re-inventing a new publishing industry.
Not content with merely selling books published by the established publishing houses, Amazon is foraying far wider and deeper into the publishing world by reaching out to the content creators and facilitating their efforts in a systematic manner. This not only allows Amazon to harness the creative potential of those who have a meaningful message to convey, but also, it allows Amazon to sit right in the middle of the new industrial revolution – one of business networks.
So, instead of investing thousands, even tens of thousands of dollars in publishing, printing and promoting the books, now it is possible to create meaningful conversations from your living room, when it is convenient to you (e.g. on a rainy weekend – as it is for me today). And instead of book signings and tours, it is possible to use blogs, articles and forums.
Traditional publishing industry will of course continue to resist these changes – just as the candle makers union continued to resist electricity. Eventually, though, most candle makers will switch trades and learn electricians’ trade because that is where the future lies.
If you want to read more about the newer business models and how they are being created in the modern commercial world see The 5-STAR Business Models here.