New Business Models for the Knowledge Economy

Book excerpt: Few concepts in business today are as widely discussed as business models. Research shows that business models are a better predictor of financial performance than traditional industry classifications. The unprecedented potential of the internet (interactivity, connectivity and speed of communication) along with the new generation of IT applications for enabling co-operative working and communication gives rise to new business models for organization creation and development. It is becoming clear that organizations that manage to incorporate values such as sense of community, knowledge sharing and enlightened self-interest into their business model, will perform better in the network economy than organizations whose business models are based solely on economic rationalism. This book features a business model that presents three new types of business model, in which 'customization', 'innovation', and 'authenticity' play an important role as solutions to the new requirements of business. The authors provide an explanation of their new models and explain how they can be used by both profit and not-for-profit organizations to design an integrated strategy for organizational development, governance, IT and business processes. The result is a rigorous but very accessible guide for anyone interested in organizational development and new business strategy.