Chapter 10

Future business models

Focusing on true value, scale and efficient use of resources

Introduction

The business model is how a business creates, delivers and captures value. And, for most industries, we thought we knew the basic formula pretty well – until about 2001, when a wave of new ways to create and deliver value started to impact our daily lives. Apple’s iPod (2001) and iTunes (2003) delivered fast, easy music to our pocket; Amazon’s Kindle (2007) gave us weightless (and wait-less) books; Skype (2004) gave us free international calls; Facebook (2005) gave us friends; and Airbnb (2008) gave us places to visit.

Some of the emerging models were fundamentally new ways to connect buyers and sellers. Amazon took aggregation ...

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