From the Ashes of the Smoldering Corporate Business Model, The Rise of the Social Business Model: A Diagram

Dion Hinchcliffe, of the Dachis Group, presents a great diagram depicting the rise of social business from the ashes of the corporate model. He attributes this evolution to the “Shirky Principal, ”

When markets change and the economic rules evolve — as they always do — companies that have an excessively vested interest in the status quo don’t bend or adapt to new ways of doing things. Instead, they usually break. This has been called the Shirky Principle, namely that “institutions will try to preserve the problem to which they are the solution.” When you have a global business environment in this state and a sharp bend in the road appears, many of them will go off the road.

He teases out a few of the “new” business forces a foot today:

  • Peer production instead of central production
  • Community-based networks instead of management hierarchies
  • Nearly free real-time global data flows instead of expensive and ponderous data silos.
  • Social business models to augment traditional business models
  • The lowest barrier to creating network effects (i.e. shared value) in history

He concludes by saying,

For most of us now, there’s an entirely new set of opportunities lying on the other side of the transition to the 21st century, if we only have the lens in which to perceive them.

Link to the entire article, for more of Hinchcliffe’s perspectives here:




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