The five stages of business evolution

Your business is built around a set of assets

Your business is built around a product portfolio

Your business is configured to address a collection of customer segments

Your business is designed to address needs of individual customers

Mass production enables the creation of cheaper products

Supply networks enable the creation of a richer product portfolio and improve customer choice

The internet, smartphones, “Big Data” and “The Internet of Things” enable the creation of products targeted at individual segments in support of a customer lifestyle

Low cost manufacturing and distribution – the start of the post-industrial age – enable the creation of bespoke solutions for individual customers

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Preindustrial, craft-based

Business is a fundamentally local affair, aside from the exchange of small, high value, durable goods

Driven by the development of new ideas

Supply Chain Disruption The development of cheap and effective supply chains enabled the creation of a greater range of products and more options for customers

Information Disruption (Also known as “digital disruption”.) Digital technology enables us to collect and analyse enough data to sense and address the needs to generic customer types (segments)

Social Disruption The shift in the balance of power from firm to consumer, from large to small, moves industry of a push-based business-centric model, to a pull based consumer-centric model

Production Disruption The development of manufacturing technologies (steam engines, looms, etc) and production systems (production line) shifts the focus from labour to capital

Your focus shifts at each stage

Build infrastructureProvide products and services Fulfil needs Enhance life

You invest in the assets to extend the range and efficiency of your operations

You develop innovative new products and then bring them into the business to reduce costs and improve distribution

You identify new segments and then transform the business to move it to the new segment

You address unique customer contexts with a unique collection of services

You develop your skills and a reputation for quality based on personal relationships

Craft and quality