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The Collapse of Complex Business Models

April 2nd, 2010 No comments

Clark Shirky has an excellent post on how complex business models are collapsing in the face of modern technology. It’s a very well argued piece, with examples from media, telecom and ancient empires. Well worth reading.

This also dovetails well with the hypotheses behind the “blue ocean” strategy and “innovator’s dilemma” books, which both essentially state that disruptive technologies usually come from solutions that are resource-poor initially. It’s not always the superbowlesque ‘buy millions of users’ strategy that wins out. A viral strategy, based on an easy to understand value proposition, coupled with natural referencing can always beat out the most expensive of ads in terms of effectiveness.

Read the post here.