retail news in context, analysis with attitude

The Wall Street Journal has a really interesting story that starts this way:

“To survive in today’s fast changing marketplace, every business--large or small, startup or long established--must be capable of a continual process of transformation and renewal. Surveys show that most executives agree, and in fact, many believe that business model innovation is even more important to their company’s success than product or service innovation. But other studies have determined that no more than 10% of innovation investments at established companies are focused on creating transformative business models.”

The argument is that “new technology alone, no matter how transformative, is not enough to propel a business into the future. Nor, for that matter, can past success justify existing business models. The business model wrapped around the technology is the key to its success or failure…”

Totally worth reading, especially for business executives who are immersed in legacy/traditional business models and who think that a little bit of technology here and some new products and services there are enough to guarantee survival.

And the thing is, nothing guarantees survival.

You can read the story here.
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