Business Model Reengineering is the New Buzzword
Michael Hammer proposed Business Process Reengineering (BPR)
Venkat N Venkatraman is reminding business leaders the new imperative - Business Model Reengineering.
For Hammer, the base for BPR was technology.
For Venkatraman, the base for Business Model Reengineering is Web. Now it is cloud. People across the globe are now connected through the cloud and are in instant touch. Communication and transactions are now taking place instantly in the cloud. The bandwidth available to users will still further increase and cloud or web based interaction will increase exponentially and time delays will decrease further substantially.
Just as Hammer told business people don't automate business process but reengineer them. Obliterate the current processes and design radically new processes by understanding the power of the new technology.
Venkatraman gives similar call. Don't transfer the work under the current business model to a cheaper location using cloud. Radically reengineer your business models. You can build more effective and efficient business models.
Has any body done it? Yes. You have totally digital technology based businesses like Google, Amazon, Facebook, Twitter. Yes, they created radically new business models. But the surface of the scope is yet to be scratched. Businesses have not yet grasped the potential.
Venkatraman says, don't look at your current competitors with the same business model and be complacent. There are many small players in the shadows experimenting with digital technology business models. If you don't take initiatives now, you may face a sudden challenge that you can't survive.
Five Web Framework
Venkatraman formulated the five web framework as Mobile Web, Social Web, Media Web, Real-time Weba and Machine Web. These five webs are interconnected also.
Mobile web has 5 billion mobile phones. Social web has users on Facebook and Google+ and many others. Media Web has YouTube and many blogs on various platforms apart traditional media now offering e-editions Real time web has twitter. Machine web is the connected machines communicating with each other and taking actions through digital communications.
In the digital economy and infrastructure, advertising has become an important revenue source and permission has become a marketing step. Consumer has more involvement in product creation as well as product promotion.
To Understand More the Five Web Model
Globalization 3.0 - A talk by Prof Venkatraman on Importance of Expertise
Interview with Venkatraman - Economic Times - 7 December 2012
Digital Technologies - What does it mean for CIOs - October 2011 Presentation
Relation between Business and IT - October 2002
IT-Enabled Business Transformation: From Automation to Business Scope Redefiniton.
Sloan Management Review; Winter 1994; 35, 2; Pp. 73-87
Journal of Management - Prof Venkatraman is the 22 most downloaded management researcher.
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