Change is rarely linear, a smooth line of continual incremental improvement. It's more typical to see a punctuated equilibrium, where long periods of stability punctuated by rapid periods of change. This slides are a work in progress where I'm trying to break the evolution of businesses (as opposed to the business landscape) into a number of distinct phases and describe what causes the shifts and what organisations focus on during the periods of stability. Feel free to contact me if you have and thoughts / builds on the slides.

1. The five stages of business
evolution

2. Your business is built
around a set of assets
Your business is built
around a product
portfolio
Your business is
configured to address a
collection of customer
segments
Your business is designed
to address needs of
individual customers
Mass production enables
the creation of cheaper
products
Supply networks enable
the creation of a richer
product portfolio and
improve customer choice
The internet,
smartphones, “Big Data”
and “The Internet of
Things” enable the
creation of products
targeted at individual
segments in support of a
customer lifestyle
Low cost manufacturing
and distribution – the start
of the post-industrial age
– enable the creation of
bespoke solutions for
individual customers
1 2 3 40
Preindustrial, craft-based
Business is a
fundamentally local affair,
aside from the exchange
of small, high value,
durable goods

3. Driven by the development of new ideas
Supply Chain Disruption
The development of cheap
and effective supply chains
enabled the creation of a
greater range of products
and more options for
customers
Information Disruption
(Also known as “digital
disruption”.) Digital
technology enables us to
collect and analyse enough
data to sense and address
the needs to generic
customer types (segments)
Social Disruption
The shift in the balance of
power from firm to consumer,
from large to small, moves
industry of a push-based
business-centric model, to a
pull based consumer-centric
model
Production Disruption
The development of
manufacturing technologies
(steam engines, looms, etc)
and production systems
(production line) shifts the
focus from labour to capital

4. Your focus shifts at each stage
Build infrastructure
Provide products and
services Fulfil needs Enhance life
You invest in the assets
to extend the range and
efficiency of your
operations
You develop innovative
new products and then
bring them into the
business to reduce costs
and improve distribution
You identify new
segments and then
transform the business to
move it to the new
segment
You address unique
customer contexts with a
unique collection of
services
You develop your skills
and a reputation for
quality based on personal
relationships
Craft and quality