Transform your business
When Apple introduced the iPod with the iTunes store it revolutionised portable entertainment, creating a new market and transforming the company. In three years the iPod/iTunes combination became a nearly $10 billion product and Apple’s market capitalisation skyrocketed from $1billion in early 2003 to over $150 billion by late 2007.
However Apple was not the first company to bring digital music players to market, there were two other players in 1998 and in 2000. Both products worked well, were portable and stylish. The key different was that Apple did something far smarter than take a good technology and wrap it in a snazzy design. It took a good technology and created a great business model. Apple’s innovative business model combined hardware, software and service and made downloading digital music easier and convenient. Apple essentially “gave away” the low-margin iTunes music to lock in the purchase of the high-margin iPod. This model defined value in a new way and provided industry-changing convenience to the customer.1
You can transform your business through:
- Leadership and culture
- Build the right team
- Plan for growth
- Business model
- Monitor performance
- Uptake technology
- Programs and services
1 Johnson, M., Christensen, C., and Kagermann, H. Reinventing Your Business Model. Harvard Business Review. 2008.