Recently one of my business contacts pointed me towards the Best Global Brands report by Interbrand. In the discussion we had on how to enable new business model implementation he posed the statement that any strong business model basically gave away one of the 4Ps out of the classical marketing mix.
Giving it some more thought there are numerous examples of strong brands, set by convincing business models that basically all have a certain WOW factor. Most of the WOW comes from an empathic component within their respective business models.
More and more companies involve their customers in their business model, stepping away from classical transactional mentality moving towards strong customer experiences. Meanwhile the relationship between company and customer is further tightened, making it almost impossible to switch, not based on product specifications, but on the firm’s lovemark.
By opening up business models to consumers of products and services companies are able to provide experiences that can be tailored to one’s unique preferences. The late management guru Prahalad labeled this as N=1 in The New Age of Innovation.
Empathic business models examples
- Product
Nescafé (#25) let’s you create coffee to your own preferences with their new Dolce Gusto system
Nike (#26) provides customers to design a tailor made sneaker based on the offered options - Price
Google (#7) provides you everything you needs for free, you only need to provide google with your personal data for advertisement purposes
IKEA (#28) is able to offer its’ products at an extremely low price; you have to do the assembly yourself - Place
eBay (#46) provides possibilities to globally auction and bid on running auctions detached from place and time
MTV (#54) is offering most of the content also online, so that it can be viewed anytime, anywhere - Promotion
Amazon (#43) recommends products based on other people’s buying behavior
Nokia (#5) has numerous online fan communities that support users in the use of their devices; totally separate from the company
Being successful is about being connected. For this purpose you as a company do not be in close proximity of your customer 24/7, but you need to find a mechanism that they share their hopes and dreams with you.
Based on those you know where to focus and distinguish between the must-haves, and the nice-to-haves. Then find ways to involve your customers in your business model. Maybe they will not even notice, but they will appreciate it. For sure!
Many of the people following the Business Innovation topic online already know TED. TED (Technology, Entertainment, and Design) is an online platform which is used to spread ideas. Basically talks, such as presentations are made available to the public, for free. The main goals is to inspire others to start thinking differently, as Apple will probably put it.
February 27th in Aspen the 2008 TED Conference was held. Here 21 year old Ben Kaufman was present. Ben is the initiator of kluster, which is an online collaboration and decision making platform. Kluster aims at being a new social network which generaetes new ideas, products, and designs (source: Businessweek). Kaufman heavily relies on what trendwatcher call tapping into the global brain, getting labor for free!
In the past he has already been succesful with the concept. In merely 72 hours he and his team have created the Bevy, of which 40,000 items were sold in 28 countries (again Businessweek). During the process 30,000 people voted for the Bevy, so Kaufman knew demand was there. At the TED Conference he hoped with the help of people like Al Gore, Sir Bob Geldof, to create a new big product, hopefully aimed at solving a large problem such as fighting disease, global warming or poverty and hunger. However the result was “Over There.” A game which aims increasing cultural awareness.
With the sponsoring of the chair of Innovation Management by DSM Prof.dr. Harry Barkema, who was until now Professor of Strategy and International Management at the School of Economics and Business Administration at Tilburg University, the Netherlands transfers to RSM Erasmus University in Rotterdam.
As Executive Director, Barkema will be responsible for the set up and organisation of the Innovation-Cocreation Lab (ICCL). This is the first time a lab of this kind will be created in Europe. The objective of this lab is to develop, in alliance with top companies, top researchers and top institutions, new strategies and organisational designs in order to provide high value product innovation and new business models. This will be achieved through innovative methodologies – the co-creation of knowledge with companies.
The Board of Directors of the ICCL consists of Feike Sijbesma (CEO DSM), Han van Dissel (dean RSM), Kathy Eisenhardt (Stanford) and Jan Willem Oosterwijk (President Executive Board Erasmus University).
