The rise of the cyber-economy has made it considerably easier to start a business. One can register a company online, develop a virtual prototype with high-quality software, target customers via sophisticated machine-learning models, and have products manufactured and shipped all around the world by professional manufacturers. Crowdfunding platforms complement venture capital and business angel offers, while online consulting companies provide all the support functions and services. For many B2C industries, vertical integration has been minimal, subcontracting easy, and entry barriers have been broken down, thereby allowing actors to specialise in what they do best. As a result of technological innovations, the new economy has become radically more complex and competitive.
Companies must embrace digital transformation and adapt to new consumption behaviours to survive. This calls for a rethinking of their business models while facing the risk of disruption, handling activist consumers and their expectations, and adopting daring transdisciplinary approaches to tackle business complexity. To do this, three paradigm shifts are recommended. We discuss these below.
WHEN DISRUPTION IS THE NORM, LEADING A MARKET MEANS DIGGING ITS GRAVE
Modern business strategy is still largely based on Michael Porter’s view and concept of competitive advantage, which ranges from owning an exclusive technology to having preferential access to strategic resources or economies of scale. According to Porter’s famous analysis, the state of competition in an industry is articulated around five basic forces: the bargaining power of suppliers, that of consumers, the threat of new entrants, the threat of substitute products or services, and competitive rivalry. Without rejecting the
