Process efficiency is important, but a winning business model is even more critical. A company can become exceptionally efficient at doing the wrong thing. Ultimately, success depends on operating in a position where you can create and capture value. Largely, since the internet is unconstrained and largely unbounded, businesses must continually rethink and redesign their operating models.
Consider this example. In 2000, assembling the world’s top movie producers to create short-form videos for a digital platform would have seemed like a brilliant idea, something akin to Quibi. But by 2021, the rules had changed. In the internet age, owning demand and mastering discovery became more strategic than owning supply. Consequently, a model built around professionally produced content struggled.
A different model emerged. Build a platform where millions of people can create and upload videos, and let algorithms discover, rank, and distribute the best content to billions of users within seconds. That is the essence of TikTok’s success.
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The lesson is clear: the most catalytic thing a leader can do today is to build and maintain a responsive business model. Markets, technologies, and consumer behaviors are changing too quickly for static strategies.
If you miss the business model, everything else eventually falls apart. The internet has fundamentally altered the mechanics of competition, and in this new era, adaptability is not optional, it is the foundation of enduring success.
Join me today to co-learn on the Grand Playbook of Business at Tekedia Mini-MBA
Sat, June 27 | 7pm-8.30pm WAT | The Grand Playbook of Business and Four Plays in Markets – Ndubuisi Ekekwe | Zoom link
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