Modern day business can be a hellishly complex experience and there are businesses such as construction or logistics that I do not, and probably will never, understand (how the heck to you build a skyscraper ?).
But most online businesses are, at their core, simple affairs. And the most successful ones often live off existing businesses (think eBay and Google).
So, let's deconstruct Google:
- Index information (web pages, maps, books)
- Make the index searchable
- Make it available to an audience
- Build the audience
- Monetize the audience
Or Microsoft, which is a somewhat more traditional company:
- Build tools
- Sell tools
Or Microsoft in the future:
- Build tools
- Make them available online
- Build an audience
- Monetize the audience
Hmm, a theme seems to be appearing. It's making money from that pesky audience. What Google have is a very simple business plan linked to an engine for delivering audiences. A bit like TV used to be. But now there's a long tail involved.
There's a lesson in there somewhere....
But most online businesses are, at their core, simple affairs. And the most successful ones often live off existing businesses (think eBay and Google).
So, let's deconstruct Google:
- Index information (web pages, maps, books)
- Make the index searchable
- Make it available to an audience
- Build the audience
- Monetize the audience
Or Microsoft, which is a somewhat more traditional company:
- Build tools
- Sell tools
Or Microsoft in the future:
- Build tools
- Make them available online
- Build an audience
- Monetize the audience
Hmm, a theme seems to be appearing. It's making money from that pesky audience. What Google have is a very simple business plan linked to an engine for delivering audiences. A bit like TV used to be. But now there's a long tail involved.
There's a lesson in there somewhere....
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