"...... You must design your entire company, not just the product, Holloway says. This includes the business model, the management organization, and the culture.
“It turns out that, if you look at innovations in companies, roughly half of them come in the business model, not in the product or service,” he says. There are many examples in which companies sell virtually the same product or service, but whether they succeed largely depends on how they were built.
Netflix is an example, he says, as is the former Sun Microsystems, which was founded in 1982. When the computer systems company started, there were 27 other companies building the same type of product, but few thrived and scaled the way Sun did. In what was a unique business model at the time, Sun used components from the supply network and allowed others to create products that could be integrated with Sun’s workstation, Holloway says. The company was acquired by Oracle Corp. in 2010 for more than $7 billion. ......"
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