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Companies often develop innovative products but treat the business model as an afterthought. Futurist Amy Webb argues this is a fatal flaw. True transformation requires innovating the business model in tandem with the technology, as Norwegian news group Schibsted did by anticipating the decline of print ads.
Webb deliberately ended her most famous product, a nearly two-decade-old trend report, because its static format was obsolete. This act of "creative destruction" exemplifies the need for leaders to proactively dismantle successful but outdated models to make way for reinvention.
A common mistake leaders make is buying powerful AI tools and forcing them into outdated processes, leading to failed pilots and wasted money. True transformation requires reimagining how people think, collaborate, and work *before* inserting revolutionary technology, not after.
The true challenge of AI for many businesses isn't mastering the technology. It's shifting the entire organization from a predictable "delivery" mindset to an "innovation" one that is capable of managing rapid experimentation and uncertainty—a muscle many established companies haven't yet built.
Disruption opportunities in sectors like publishing exist not because incumbents are incompetent, but because their existing structures and business models force them to be "backward compatible," preventing true innovation and creating an opening for new players.
Technically-minded founders often believe superior technology is the ultimate measure of success. The critical metamorphosis is realizing the market only rewards a great business model, measured by revenue and margins, not technical elegance. Appreciating go-to-market is essential.
When fundamental market changes make your business model obsolete, incremental changes aren't enough. You must consider how your underlying talent and expertise can be repackaged into a completely different business, like turning a tech platform into a consulting service.
Business model innovation is a third, often-overlooked pillar of success alongside product and go-to-market. A novel business model can unlock better unit economics, align incentives with customers, and dictate the entire product and operational strategy.
A key breakthrough for Au Bon Pain was realizing customers didn't just want bread; they wanted sandwiches. By seeing their core product (the baguette) as a platform for a larger "job to be done" (a convenient, quality lunch), they unlocked massive growth. This empathetic shift in perspective is a powerful tool for innovation.
Monday.com's CEO admits their initial AI features were merely "sprinkling AI dust"—superficial additions that didn't change the product's core value. True transformation requires abandoning bolt-on features and undertaking a complete reinvention of the product to be AI-native from the ground up.
Veteran tech executives argue that evolving a business model is much harder than changing technology. A business model creates a deep "rut" that aligns customers, sales incentives, and legal contracts, making strategic shifts (like moving from licensing to SaaS) incredibly painful and complex to execute.