Disney’s recent decision to restrict products advertised on its child-focused media properties might not appear to be business model innovation in the classic sense. But it is. With that one decision, Disney is redefining how, where, and why they will do business with other companies, and offering a leading-edge value promise to consumers. In reading societal tea leaves correctly and taking bold action, Disney will advance its financial and social value. Starting in 2015 Disney will restrict advertising on its child-focused TV channels, website and other media properties to brands that meet a strict new set of federal nutritional standards. The decision will reduce Disney advertising revenue from brands like Capri Sun™ drinks and Kraft Lunchables™, foods that may be fun to eat but not good nutrition. Concurrently, Disney will reduce the salt content of meals served at its theme parks and engage…
4 Trends Reshaping Business Models as Everything Computes
“Today everything computes. Intelligence has been infused into things no one would recognize as computers: appliances, cars, roadways, clothes, even rivers and cornfields.” So begins an IBM Smarter Planet ad in the Wall Street Journal arguing that computing must get smarter to manage today’s wealth of data. This data is not your father’s data of computer bits and bites. It now includes tweets, visual images, videos, machine output, etc. In this new world, IBM argues, computing must be: Designed for new data streams Optimized and fine-tuned to specific user tasks Managed in cloud-based solutions that offer security and flexibility Major computer models don’t change often, IBM states. But when they do change they “unleash enormous productivity, innovation and economic growth,” capturing the conclusion of economists who study Kondratiev long economic cycles. Does your business model capitalize on a rising sea of data from…
Business model innovation lessons from century-old IBM
I fondly remember being a guest at a 100th birthday celebration – that of my client Hufcor, the worldwide leader in moveable partitions and walls to create flexible space. But Hufcor wasn’t always the leader. A savvy new owner/CEO, Mike Borden, saved Hufcor from bankruptcy by pursuing an operational effectiveness strategy, process innovation and global expansion, which ultimately positioned Hufcor where it is today. At its centennial celebration, I observed the pride its stakeholders felt as they celebrated generations of Hufcor’s contributions to its employees and their families, its customers and distribution partners and the humble blue-collar town of Janesville, Wisconsin. As IBM celebrates its well-deserved 100th year birthday this month, business leaders should study how this Fortune 500 giant (and mid-size companies like Hufcor) arrived at this momentous milestone. The $100 billion global technology leader, with its 427,000 employees, defied the odds….
Does Carly Fiorina’s HP legacy foreshadow her Senate leadership?
It seems natural to judge a political candidate by her previous work performance, which is precisely why my eyes are on the California Senate race. Former HP CEO Carley Fiorina is challenging the incumbent democrat, US Senator Barbara Boxer, to represent the financially strapped state. While the two women trade public policy barbs, HP shareholders are debating whether to dump HP stock. From my perspective, the seeds for HP’s current problems were planted from 1999-2005 during Fiorina’s tenure as CEO of HP. (Disclosure: I vote in Wisconsin. I am an independent and have voted for both parties.) Before her forced exit, Fiorina changed HP in two ways that each demanded significant internal focus. First, she reorganized the company, a reorganization that Mark Hurd who followed Fiorina spent time dismantling, as it diffused responsibility for organic growth and delayed decisions. (Hurd’s reorganization cut out…