Harvard Business Research (podcast 233: Finding profit in a world of free )
In this podcast, Sarah Green, from the Harvard BusinessReview, interviews Saul Berman, vice president and global lead partner for Strategy Consulting at IBM Global Business. According to Saul Berman, author of Not for Free: Revenue Strategies for a NewWorld, low cost communication and new technologies combined with fast changing customer expectations impact on corporate strategy and business model. Consumers have been used to access contents for freebut they will pay for customized experiences and services as for example applications on the Iphone. Companies must find a way to innovate and create new model, especially new revenue model. Thatmeans to find new income flows by marketing what customers really want in a short time basis and how they prefer to get the added value. The author looks at physical product and the customer’s longing forinformation content related to the product. For instance in a car, drivers wish to get entertainment or navigation service. In the media industry or other industries, the access and the payment ofcontents have been revolutionized. Consumers now feel like watching video or listening to music anytime and anywhere. They require reading decomposed contents or packaged products on their devices bypaying on variable basis such as subscription, a la carte or on demand.
All those need to be considered by companies as additional businesses. In the conclusion of the interview, Saul Berman mentionssignificant points for business executives willing to be more innovative and to enroll this new business model. Besides understanding effectively the entire structure of their organization, they needto adapt and facilitate the organization toward innovative models. Traditional firms too often based their strategy on past decision and restrict those new models. Then, resources as talents or...