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Global Mind Leaders - " The Transformative Business Model "



" The Transformative Business Model "


How to tell if you have one
by Stelios Kavadias, Kostas Ladas, and Christoph Loch
( Harvard Business Review ).

Idea In Brief

The Question
No new technology can transform an industry unless a business model can link it to an emerging market need. How can you tell whether a model will succeed in doing that?
The Research
The authors undertook an in-depth analysis of 40 companies that launched new business models in a variety of industries. Some had transformed their industries; others looked promising but ultimately didn't succeed.
The Finding
Transformative business models tend to include three or more of these features: (1) personalization, (2) a closed-loop process, (3) asset sharing, (4) usage-based pricing, (5) a collaborative ecosystem, and (6) an agile and adaptive organization.