So what does all this mean?
For entrepreneurs: Many entrepreneurs focus on developing an innovative product or service. Billion-dollar entrepreneurs mainly developed a better business model, or they imitated a business model and managed it better than their competitors. Dick Schulze imitated the pioneer who developed big-box stores for selling consumer electronics, and built Best Buy.
For corporations: Corporations spend billions trying to develop evolutionary improvements for their products, but often lose to better business models. This is how Amazon.com beat Borders, and Barnes and Noble; and how Microsoft beat IBM.
For universities: The highly intelligent people in universities spend a lot of time trying to come up with a better technology. Spending time to develop a better business model, with or without a better technology, may reap more dividends.
For governments: Entrepreneurs can be trained to develop better business models, and do it for less. It is much cheaper than citizens being unemployed or offering tax breaks to VCs outside Silicon Valley.
The next two decades will disrupt more established industries than have been disrupted in the last century. And the list of those becoming obsolete will include universities, retailers, banks, manufacturers, hospitals, fashion and clothing, and travel companies. Get prepared.
MY TAKE: Improve the product. Innovate in the model. Invest in the trend. Eureka is for scientists, not for entrepreneurs. Many entrepreneurs focus on a “new” product or service rather than focusing on the business model and on their leadership skills to dominate an emerging market. They should adjust their focus.
This article was written by Dileep Rao from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network. Please direct all licensing questions to email@example.com.