Srinivas Reddy’s Weblog

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Emerging Business models

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Watching the replays from the recent SAP Sapphire user conference two things that stuck out to me are – need for business model innovation and enabling micro consumption. Be it in the Enterprise IT industry or any other industry for that matter, Consumers demand  “Instant value based on Fresh content”. Most industry business models are not prepared for such agility.  This nice blog post @dahowlett highlights this for the Enterprise IT industry. While adopting to the bazaar business models pioneered by Open source software development become mainstream finding the right Content monetization model is the challenge. The music industry trends show case the current state of the art. The fact that Apple Appstore crossed the 500,000 mark recently shows that the power of micro consumption in the consumer IT has arrived. While Salesforce is trying to replicate this in the Enterprise space with the AppExchange and SAP with its EcoHub, Enterprise consumers can only benefit from the competition.

What is really preventing the traditional Enterprises from adapting the Bazaar type of Business model? The question if this is the right model for all Business to adopt is something I personally feel is not up for debate anymore. At the heart of adoption would be creating learning organizations that empower people to collaborate in the enterprise and across the Business network in a transparent way. In this context I like the thought on “social objects in the enterprise” by JP Rangaswami.  Making people across organisational boundaries to collaborate is difficult enough than the task of collaborating with business ecosystem is a major challenge to conventional organizational setups. The genY style leadership being promoted by Vineet Nayar from HCL is a good example on how we can get there. I also like the following statement from SAP Chief Sustainability Officer Peter Graf  “we need to manage entirely new type of resources – social impacts, environ impacts, network life cycle sustainability metrics (energy, water, ..) not just finance and enterprise assets (people, machinery,…)”.

I liked a statement from an expert at SAP Customer event Sapphire “Future is in harnessing diversity (be it people, technology, domains, systems) and ensuring interoperability for unlocking new value”. While the emphasis is mine, I think they highlight the key aspects of a Bazaar business model. Given the current smart customers who keep themselves informed in real time the next gen biz models begin with empowering the employees.  While providing “self service” access to content inside the enterprise has been mainstream for some time how this can be enabled for the business network will be key for the emerging business models. Enabling Amazon mechanical turk like efficiency to extended business process can make the “Bazaar” like business models possible.

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Written by srinivasreddy

May 28, 2011 at 10:37 am

Posted in SAP, Technology

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