Disruption and opportunity

In this week’s lecture we attempted to deepen our understanding of business models and discussed the inclination for some companies to do what they are already doing, but better, when in reality, such companies should be doing things differently altogether. For example, companies may automatically continue producing a product with traditional characteristics or performance dimensions, rather than embracing the potential to change that product either to make it low cost or simplify its user interface.

This is one of the reasons that successful companies miss new waves of opportunity.

We also discussed the idea that innovations which businesses must respond to can be disruptive. Disruption can occur throughout the value chain and in a complex and shifting market, those who can help consumers make decisions are those who enjoy success. Businesses like Kodak that did not recognise the disruptive properties of digitisation, and its potential to destroy their value proposition, are those that have suffered the most.

For publishers, such disruption has implications for the value chain with effects across the whole of their business, including resources, costs, branding, technology and more, but there are some that continue to flourish through a view of the consumer as a community.

As Michael Skoler advocates, the idea of community is a powerful and emerging business driver. Some publishers have recognised this and have used their core capabilities and activities to create communities, and as a result, new client segments. An example of this is Bloomsbury Publishing PLC’s launch of Bloomsbury Institute that hosts “literary salons, lectures and book clubs, as well as providing sessions for unpublished writers” (Williams). This innovative venture enables the publisher to access the reader events market in addition to its existing market, however, it has also necessitated the cost of additional specialised staff in the form of Claire Daly, as the Bloomsbury Institute events manager, who previously acted as Festival Co-ordinator for the Soho Literary Festival.

Williams, Charlotte. ‘Bloomsbury Institute enters reader events market.’ The Bookseller. 09 Dec. 2011. Web. Accessed 16 Feb. 2012. <http://www.thebookseller.com/news/bloomsbury-institute-enters-reader-events-market.html>