With new businesses and new business models popping up on the Internet like a bag of microwave popcorn, differentiation is far more transitory these days than it once used to be.
Let's take this summary of the 21st Century Corporation from Business Week in August, 28, 2000*, over 9 years ago:
1. Everything gets cheaper faster. The Internet commoditizes every new service or product idea so rapidly by providing the ability to not just compare one or two sources, but 100 or 1,000 sources, that price reduction has accelerated almost out of control.
2. Cutting costs is the answer. With significant downward pressure of margins it is imperative to reduce expenses to maintain profitability.
3. Innovation builds profits. Since you cannot raise prices, and must consistently reduce prices, innovation is required accompanied with rapid expertise development and ingenuity. This advantage is temporary, so innovation must be constant, reflexive and accelerate (rather than coast forward) to address #1 above.
Adaptability
That article was almost a decade ago, and is still relevant, if not even more significant now than it was then. It was published prior to the dot com crash. Unlike 100 years ago as the Industrial Revolution and the Carnegie's, Rockefellers' and Fords' were taking assembly line production to it's maximum potential, we clearly know it's weaknesses and limitations. One of the most significant limitations is adaptability. Workers specialize so much on their individual task that they cannot readily adapt to other tasks or provide generalization or see the whole picture.
The transition from the assembly line mentality of large deparments and silo style development is a slow one. Integrating departments and collaborating by increasing communication between sales, project managers, creative development, application development, product managers, production and delivery is not as simple as it may sound. Your value chain may involve a very large set of people and keep communication clear requires expertise and training.
New Models for Development
In application software development and internet software development, the models over the last 20 years have evolved considerably. Agile methodologies are gaining traction as a way to create adaptable solutions and modular approaches. This keeps the customer focus as well as the requirements together, and allows flexibility with solution delivery as the landscape changes. Social Media strategy is a fabulous example of this, requirements change so quickly that modular frameworks are developed so that new quick features can be added onto the framework rapidly to meet social change and social needs and Facebook is a fantastic example of this type of structure and development.
Clearly, to stay on top and to consistently provide value, you must value education exponentially, foster creative thinking, be vigilant with the technological landscape, and be able to generate ideas and critical thinking. In Interactive Media Agencies such as Definition6, we constantly strive towards an integrative approach, with all skillsets and all mindsets sharing information and cross-pollinating ideas. We dedicate ourselves to innovation through cross-department research and landscape analysis. Our Innovation Team is specifically dedicated to meeting the demands of the 21st Century business.
* "Twenty-First Century Corporation," Business Week, August 28, 2000, p. 278.
Let's take this summary of the 21st Century Corporation from Business Week in August, 28, 2000*, over 9 years ago:
1. Everything gets cheaper faster. The Internet commoditizes every new service or product idea so rapidly by providing the ability to not just compare one or two sources, but 100 or 1,000 sources, that price reduction has accelerated almost out of control.
2. Cutting costs is the answer. With significant downward pressure of margins it is imperative to reduce expenses to maintain profitability.
3. Innovation builds profits. Since you cannot raise prices, and must consistently reduce prices, innovation is required accompanied with rapid expertise development and ingenuity. This advantage is temporary, so innovation must be constant, reflexive and accelerate (rather than coast forward) to address #1 above.
Adaptability
That article was almost a decade ago, and is still relevant, if not even more significant now than it was then. It was published prior to the dot com crash. Unlike 100 years ago as the Industrial Revolution and the Carnegie's, Rockefellers' and Fords' were taking assembly line production to it's maximum potential, we clearly know it's weaknesses and limitations. One of the most significant limitations is adaptability. Workers specialize so much on their individual task that they cannot readily adapt to other tasks or provide generalization or see the whole picture.
The transition from the assembly line mentality of large deparments and silo style development is a slow one. Integrating departments and collaborating by increasing communication between sales, project managers, creative development, application development, product managers, production and delivery is not as simple as it may sound. Your value chain may involve a very large set of people and keep communication clear requires expertise and training.
New Models for Development
In application software development and internet software development, the models over the last 20 years have evolved considerably. Agile methodologies are gaining traction as a way to create adaptable solutions and modular approaches. This keeps the customer focus as well as the requirements together, and allows flexibility with solution delivery as the landscape changes. Social Media strategy is a fabulous example of this, requirements change so quickly that modular frameworks are developed so that new quick features can be added onto the framework rapidly to meet social change and social needs and Facebook is a fantastic example of this type of structure and development.
Clearly, to stay on top and to consistently provide value, you must value education exponentially, foster creative thinking, be vigilant with the technological landscape, and be able to generate ideas and critical thinking. In Interactive Media Agencies such as Definition6, we constantly strive towards an integrative approach, with all skillsets and all mindsets sharing information and cross-pollinating ideas. We dedicate ourselves to innovation through cross-department research and landscape analysis. Our Innovation Team is specifically dedicated to meeting the demands of the 21st Century business.
* "Twenty-First Century Corporation," Business Week, August 28, 2000, p. 278.
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