Friday, April 09, 2021

The different business models in a technologically disrupted world

While going through The book "The Future is faster than you think" by Peter Diamandis and Steven Kotler, (click here) a mention is made of the seven business models which is based on how disruptive exponential technologies is going to influence our future. 

The first business model is the crowd economy model which is based on the crowd sourcing model. The success of Airbnb or Oyo or Uber is linking the people or the crowd who have excess of a resource, in this case hotel rooms, or cars, to people who need that resource.

The second business model is the free / service model. The service is offered free to the public and in turn the data of the usage patterns is monetised by the service provider. In the case of Free and Open Source Software, the maintenance and upkeep of the free and Open Source software systems is the business model.  Facebook belong to the former model, Redhat belongs to the latter model.

The third business model is the Augmented Reality (AR) / Virtual Reality (VR) Multiple worlds model which transports us to multiple online and offline, different worlds for the duration of the experience. The warehouse management system at Amazon with millions of items is based on the east storage and retrieval of materials on racks enabled by AR at Amazon.

Decentralised autonomous model is the fourth model where the control is out of human hands and resting with AI in a decentralised mode totally leaving humans free to do more creative activities. 

Converting normal devices into smart devices, feature phones to smart ones, ordinary wi-fi speakers to smart speakers etc fall in this category of the fifth smartness business model. Convergence of technologies is crucial here.

Moving from a linear business model of buy-use-dispose to a circular model of buy-use-reuse ensures better utility of product, less exploitation of resources and sustainable living providing us with the sixth business model. Plastics and wastes e-processing models fall in this group

The seventh and last business model is the experience and transformational economy model like when a person enters a Starbucks store, he experiences a different world which transforms him into a different world altogether. The old tea shop experience in Indian villages is something we cherish to enjoy even to this day which is unavailable in the cities. 

Each of these business models offers the facility to explore and provide the best service to customers, in the bargain making enough money too for the business.  We find that all these models are facilitated by technology

Not all business models in the world fall in this category. The other business models depend on being SAFER, BETTER, CHEAPER and FASTER .. Like healthcare and hospitality is based on the safer and better model, E-commerce is based on the cheaper and faster model. Logistics is based on the safer, faster, cheaper model. Click here to read a summary of the essence of the book.

George..


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