CCT355H5 Chapter Notes - Chapter all: Freemium, Smart People, Distributed Knowledge
14 Feb 2016
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Unbundling business models o o o o o o o. The concept of the unbundled corporation holds that there are three fundamentally different types of businesses: The three types can c-exist within a single corporation, but ideally they are unbundled into separate entities in order to avoid conflicts or undesirable trade-offs. These three different types of businesses have different economic, competitive, and cultural imperatives. It is suggested that companies should focus on one of the three value disciplines: Example: mobile telecommunication firms have started unbundling their businesses. Traditionally they competed on network quality, but now they"re striking network sharing deals with competitiors or outsourceing network operations altogether to equipment manufacturers. This is because they realize that their key asset is no longer the network it is in their brand and customer relationships. Infrastructure management: so the equipment manufacturers mobile companies have outsourced their operation and maintenance of their networks to lower costs.
