McKinsey & Company continues to publish some solid thinking on innovation and the evolution of business models. While I have long argued that business models are much more ephemeral owing to the continuing impact of digital technologies, I do think the article reinforces that thinking while providing a simplified approach to reframing one’s thinking about business models. From the article, Disrupting beliefs: A new approach to business-model innovation
Let’s face it: business models are less durable than they used to be. The basic rules of the game for creating and capturing economic value were once fixed in place for years, even decades, as companies tried to execute the same business models better than their competitors did. But now, business models are subject to rapid displacement, disruption, and, in extreme cases, outright destruction.
Every industry is built around long-standing, often implicit, beliefs about how to make money. These governing beliefs reflect widely shared notions about customer preferences, the role of technology, regulation, cost drivers, and the basis of competition and differentiation. They are often considered inviolable—until someone comes along to violate them.