In the last ten years, the prevailing business model was to acquire, merge and diversify to increase profits. The model said that size matters because ‘economies of scale’ would result in lower costs. The result was huge companies that became global conglomerates with many unrelated core processes and products. There are many examples. Westinghouse went from being primarily a defense and energy concern to a media company.
“What’s your organization’s core business and core competencies?” This is critical because a current business mantra is to focus on ‘core’ competencies. All peripheral activities are projectized or outsourced. Many companies are slicing and dicing themselves into smaller units. This is to inspire Brand U entrepreneurial innovation using the Internet and Web to create new business models and processes.