Why Better Business Models Matter

Anyone that has ever worked with me can tell you that I'm a stickler about "business models." In fact, I often bring the room down with my insistence that every marketing concept or advertising campaign we create must seamlessly align with our clients' business model - not just their "brand position."

Most importantly, we must keep in mind that the strategies that we develop for our clients must deliver a real and measurable competitive advantage - and thereby positively impact business models. I truly believe that "if it's not different than it's not strategic." About 10 years ago, Gary Hamel wrote about this in his excellent book "Leading The Revolution." A specific example he refers to involved Jon Ives, then current head industrial designer at Apple. When Jon made a commitment to introducing aesthetics into his process to launch the iMac, PC's were among the ugliest products in use. Mac's simply looked different and more elegant than PC's. Soon, this seemingly basic factor became a huge level of differentiation for Apple and became both a key component of their brand and their business model. This different approach has continued to this day - through the launch of the iPod, iPhone and most recently the iPad.

The point: A Business Model isn't just about how your company makes money - it must take into account what makes your products and/or services different, valuable, useful and in-demand. I've spent many years helping to make consumers aware of and ultimately purchase products and services. Along the way, I have challenged some of my clients revenue models, efficiency, uniqueness, and perceptions of their business in general. I do this because all these things make for better business models.

It seems to me that in the rush to launch so many new mobile companies of late, a mentality of "we'll figure out the business model later" persists. Of course, that is lunacy - but we live in impatient times filled with short attention span consumers. My advice is to put every major component of your business model under a magnifying glass - not just those that make you money. Assume the leadership and courage to ask yourself "what makes my business and my brand different?" Then after you are satisfied with that answer ask yourself, "no really?"