New distribution methods and breaking up your business

Today marks an important event. The launch of the Mac App store. Those of you who know me, know that I am a big Mac fan and probably already thought that this was a thing that I would like.

But it is bigger then only my own adoration of Apple. It is a breakthrough in the distribution of software. It started with iTunes and the distribution of music, followed by the App store for the iPhone and iPod. With the introduction of the Mac App store, we go one step further and will have a total different approach to the distribution of software. This will not only influence the way we buy stuff, but the whole supply of new software will also create a complete new business environment. No large companies are required, just some great developers with some great business ideas (of course, good marketing always comes in handy).

My assignment for you for 2011. In your industry, how can you change the rules on the distribution of your goods or services. And even more important, how can you break up your business model in smaller modules. And then market these modules separately.

There is market enough. Look how Android is leveraging on the concept created by Apple.

The only question is whether you have the creativity to come up with the new models and whether you have the guts to break up your existing business model. If it is to scary, start an incubator. Put new, young management on top of it and guide and coach it with your most senior management. But don’t intervene to early, let them make mistakes.

2011 is another great your to experiment. My advice, change the model and break it up. Learn from what others are doing and make it unique within your business.

Frank Wammes

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