Why New Business Model?

The old principles no longer work in the new economy. Businesses have reached the old model's limits with respect to complexity and speed.


The real problem is "a ruinously dysfunctional mismatch between today's business environment and the classic business model... Quite simply, the wrong model may transform a company into the vehicle of its own death."2

Great shifts – genuine and radical transformation – have been shaping the economy and business environment in recent decades. Technology, especially information and communication one, has radically altered the requirements for building and managing a successful business. In this new business climate, although the basic command-and-control business model has survived, it has lost its effectiveness significantly.