Monday, April 12, 2010
Dr. Uday Phadke discusses innovation in business models and how it can help companies establish competitive advantage. He uses the examples of Getty Images and dezineforce to illustrate how business model innovation has helped these companies alter the competitive landscape.
In this short video, Dr. Uday Phadke, Founder and CEO of Cartezia discusses innovation in business models and how it can help companies to succeed against competition by redrawing the contours of the industry. Dr. Phadke asserts that fundamental breakthroughs against competition can be achieved through business model innovation.
He discusses the strategy followed by Getty Images to change the way images were acquired, paid for and sold. Getty Images hired its own photographers to capture the pictures, providing the flexibility to choose the price points at which images were sold, literally creating the royalty-free model for photographic images.
Dr. Phadke also discusses another company, dezineforce, operating in the software field that offers software tools using the Software-as-a-Service (Saas) model. Under Saas, companies have moved away from paying for software licenses and instead pay subscriptions to access the software tools over the web.
Getty Images and dezineforce are two excellent examples that illustrate how adoption of innovative business models have enabled companies to compete much more effectively and redraw the rules of competition.