Destroy your value
"Preemptively reexamine all value chain relationships (the functions that create and distribute an organization's goods and services). If they don't add value, get rid of them.
Use digital technology to recraft the buying, selling, and producing processes and relationships." (sources)
A business model cannot be transposed everywhere
A company which makes a success in the "true life", can't transpose its model without any modification . When a newspaper goes on an electronic version, it has to adapt itself to its new support / media. Let's take the example of Le Monde.
In kiosks you've got to pay the newspaper, but on Internet most part of the articles are free. At the beginning of the Internet, the newspaper and its electronic version cannibalized their work because both version (electronic and classic) were the same, but one was free and the other one was not. To work on the Internet, Le Monde had to create some new free contents, and some new paying contents. New formule of subscription appeared: the paying newsletter for example.
example of the newsletter's subscription
What works on the Internet ?
The model imposed by the music majors was changed by new practices on the Internet like Jamendo.
With this new site, everything is free for the consumer who can download music under " creative common ". The site is paid by the donations of users.
example of jamendo
