Jan Bosch is a research center director, professor, consultant and angel investor in startups. You can contact him at jan@janbosch.com.

Opinion

Don’t go down with the ship

Leestijd: 4 minuten

Last week, we had a workshop with the Software Center companies on new business models and their coexistence with traditional models. The overall trend is that all companies are looking to transition from traditional, transactional business models to more continuous ones. The challenge is that the more continuous you aim for your business to be, the closer you need to be to the end-customer and user of your offering.

Many companies work in a value chain where there are other parties in between them and the end-customer. The network of typical high-volume box product providers includes wholesalers, retailers, installers and perhaps even companies operating the products on behalf of the end-customer. These partners understand that you have that interest and worry about them being disintermediated and forced out of business.

The risk of being disintermediated and forced out of business triggers the lizard brain in any human exposed to this. The result is a fight-or-flight response. The response of value network partners is typically a “mutually assured destruction” approach: if you start to work straight with our end-customers, we’ll ditch your product and buy from other suppliers.

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