Technology has forever altered the leadership and business strategy landscapes, and it continues to enable disruption across nearly every industry. Surviving – and succeeding – is one of the greatest challenges managers face, and it requires not only a different mindset, but also a different business model, according INSEAD’s Professor of Technology Strategy Nathan Furr.
In a recent series of Harvard Business Review articles, Furr outlined the methods for effective digital transformation, arguing for the role of platforms, ecosystems, and hybrid business models as the valuable stages of long-term growth. In these articles, Furr explains how leaders can turn products into platforms, how they can build collaborative ecosystems to create new innovations, and how they can develop hybrid business models to navigate digital transformation.
Take Snapchat and its recent IPO status: While the social media powerhouse considers itself a “platform,” it’s taken some interesting steps into products. Is this the right direction to create long term value?
“To see why products are less valuable than platforms, ask yourself a simple question: Would you rather be one of 2 million apps (i.e., products) competing in the App Store, or would you rather be the App Store (i.e., a platform)? You’d prefer to be the App Store,” explains Furr, co-author of “The Innovator’s Method” (Harvard Business Review Press, 2014).
For leaders in every industry, Furr identifies how digital will transform their environment and teaches them how to strategically and quickly respond.