Call Us
+91 9231566434

Community-as-a-Service: A Business Model for the 21st Century

The world soon entering the consumption economy, markets are burgeoning in places beyond the rich, industrialized nations. It is in this environment that the role of the corporation, in society and in the global economy, is changing — bringing new challenges for the CEO. This is especially true for large marketshaping companies that seek to capitalize on innovations that are altering the face of global capitalism.

Consider some of the choices the CEOs of such companies will need to make — choices very different even from those leaders confronted at the new century’s dawn.

How do you embody your company’s purpose in such a way as to attract and retain the talented and diverse work force you need and earn the social license to operate?

  • How should you balance the interests of diverse stakeholders — for example, between environmental commitments, your suppliers and the expectations of your workers and their communities, probably around the world?
  • So do you leverage data and technology responsibly to drive efficiency and power your business models? As you deploy artificial intelligence and automation, what responsibility do you take to retrain and redeploy workers displaced by technology?
  • What do you tell investors who continue to hassle you about your stock performance and short-term results, but now also demand details of your environmental, social and corporate governance performance?
  • How do you navigate the geopolitical and geo-economic challenges (including trade) you now face, through your value chains and platforms that span the globe?

Today and in the future, the rewards for success are outsized, but so, too, is the obstacle course that must be run.

An Era of Opportunity

Contemporary companies face a radically changed environment. Technology has had a profound impact on business and the economy. In the past 30 years, for example, the internet has facilitated global connection between nearly everybody — and nearly everything. Nearly, because there is still room for fuller and richer connections to everybody and everything.

Along with this disruptive technology has come rising global prosperity, which has lifted one billion people out of extreme poverty over the past 30 years — 730 million in China alone. This has contributed not just to improved human development in terms of basic services, but also enabled the emergence of vast middle and affluent classes. By 2025, for the first time in history, over half the world’s population will belong to the consuming class — that is, people who have some discretionary income left over after meeting basic needs. Equally striking, most of this growth will be concentrated in emerging economies.

These two shifts have helped expand participation in the global economy beyond a few large countries and the largest multinational corporations. Even small-scale entrepreneurs in provincial backwaters can now reach globally via digital platforms, transforming their business into “micro-multinationals.” Flows of goods, services and financial capital all grew as the world entered this century, propelled by the build-out of corporate supply chains and low-cost labor arbitrage.

The 2008 financial crisis crimped that growth. But today, a new factor is driving globalization: exponential increases in data flows. Indeed, cross-border data flows grew 148- fold (no misprint) from 2005 to 2017. That shift is, in turn, creating opportunities, even as it calls into question widely held dogma about physical supply chains. In all, it’s a fruitful time to be a market leader or an opportune time to become one — provided you can adapt to this fast-changing environment.

No Free Lunch

As digital technology diffuses through every aspect of the economy, concerns about its use (and possible misuse) increase accordingly. Cybersecurity breaches are no longer a question of if, but when. Perhaps even more challenging than threats by malicious actors, the world is also starting to grapple with the unintended consequences of technology, as well as questions of misuse by legitimate actors — customers, governments or corporations themselves. New business models relying on big data generate questions about data privacy, control, ownership and asymmetries in economic value created. Platform companies seek to understand the extent of their responsibility for the behavior of users — buyers or sellers — on their platforms. Artificial intelligence is proving its worth in myriad contexts, yet concerns about fairness, transparency and misuse, as well as persistent fears about the potential work force impacts of automation, may dampen its potential.

Income inequality among countries is in decline as per capita incomes begin to converge. But, seemingly paradoxically, inequality has risen within advanced economies over the past several decades. What amplifies discontent is the fact that most households in the mature industrialized world are making hardly any material progress. From 2005 to 2014, real incomes stagnated or fell in advanced economies for 65 to 70 percent of households. Any gains in nominal income have been largely offset by rising costs of housing, health care and education, leaving many households in rich countries with little capacity to save.

Employment and income growth are becoming more localized, concentrating around “superstar” ecosystems — often, but not always, in large urban areas. As benefits concentrate geographically, firms face questions about their responsibility for social well-being on a global as well as local scale. Today’s companies operate in a world in which the rise of new economic powers feeds a cascade of geopolitical, geo-economic and geo-technological rivalries that can disrupt trade and supply chains. Global-local tensions increase as the barriers and differences between economies — from data residency requirements to antitrust to the protection of intellectual property to health and safety regulation — become more pronounced, all while companies do more business across more borders than ever before.

Societal expectations of leading actors — whether the issue is fostering more. Diversity and inclusion or the responsible use of technology — are also shifting. After decades of accepting shareholder primacy as the de facto corporate approach, and prioritizing shareholders as the primary beneficiaries in the economic success of corporations, consumers and employees are asking new questions about corporations’ broader social role.

Perhaps the biggest shift is potentially an existential one — climate change. Which poses risks on a scale that communities, institutions and businesses haven’t had to grapple with before. Addressing climate change will require choices that could alter how the economy itself works. Intensifying climate hazards could put millions of lives at risk, as well as trillions. Of dollars of economic activity and physical capital, and the world’s stock of natural capital. Many of these impacts could be regressive, most significantly affecting the most economically vulnerable populations. Threats to supply chains designed for efficiency over resiliency, reductions in. Labor capacity as a result of heat stress, damages to physical assets and other potential. Impacts pose risks that companies will need to factor into their decision-making processes.

To make things even more challenging, all these external forces must be. Managed in a rapidly evolving competitive market environment in which many arenas have the potential to be “winner take most.”

Superstar firms capture 80 percent of profits — 1.6 times more economic profit. On average than comparable superstar firms 20 years ago. As a group, these superstars are larger, more globalized and more productive than. Median companies, and invest more in R&D and intangible assets. (software, data, supplychain partnerships and the like) than their lower-performing peers.

At the same time, it is competitive at the top. Many face threats from other established leaders as well as nascent stars. Especially emerging-market firms, many of which have outpaced the incumbents’ revenue growth over the past two decades. No wonder nearly half the superstars fall out of the top ranks every business cycle, and. 40 percent of those that fall end up in the bottom decile. At that bottom, many linger for long periods. Already, we can see strong rises in the number of “zombie” companies — which the. OECD defines as loss-making firms that do not generate enough cash to. Cover interest payments on their debt for at least three consecutive years in a business cycle.

While these superstars generate significant economic value, they. Are also highly visible and face growing societal pressure to contribute in line with their returns. Hence, the question arises of who benefits from the outsized economic success of such firms.


Contrast the method above with a new way to launch a business today, with minimal risk and maximum efficiency.

When I work with and advise startup entrepreneurs. I follow a well-defined method for clarifying. Testing and validating the business model – before going. To market and spending thousands or tens of thousands of dollars on prototyping and/or marketing.

The method looks like this (I’ll describe each step in detail):

  1. Discover a problem.
  2. Build the business model (not the business plan).
  3. Validate the business model.
  4. Test the business model.
  5. Get some startup $$$.
  6. Launch a Minimum Viable Prototype.
  7. Get customer feedback.
  8. Improve the product.

Leave a comment

Your email address will not be published. Required fields are marked *

Tag Cloud

(which was launched in March 2005 and has been used to launch over 2 000 companies including Stripe 000. personal property leases. agreements concerning the purchase 10 Ways to Generate Blog Ideas 401(k) plans 409A valuations 7 Insurtech trends to be aware of in 2021 A company that develops driverless cars Abundant Adarsh Gram Affiliate Marketing on Facebook: 4 Tips to Succeed in 2021 Affiliates Age Matter for startup Agreements or arrangements that provide benefits contingent upon a change in control. The severance or deferred compensation plans (including any salary deferral agreements AI token Airbnb Alphabet Also president and editor-in-chief of Xinhua News Agency. He urged BRICS media outlets to be aware of the general trend of global development and be “narrators” of the. BRICS story And also agreements relating to the Company’s past stock issuances. Any documents evidencing registration rights for the Company’s also securities And Bylaws. Similar information for the Company and subsidiaries And more. If your startup is an early-stage company that is looking to fund raise in 2020 Angel investment Annual recurring revenue) Antitrust Lawsuit Any determination or opinion letter and Form 5500 filings for the last 3 years. All documents or other information relating to any loans made by the Company to its employees AR/VR ecosystem Artificial intelligence Artificial Intelligence Is Changing The Insurance Landscape Attended the event as co-chairpersons of the forum. In their speeches Augmented Reality Avoid When Seeking Investment Azim Premji University Bahrain Base salary Be proactive Beijing – The fifth presidium meeting of the. BRICS Media Forum was held via video link. Monday Best Business Structure Better leader Bitcoin Blobal market Blockchain technology Branding on Investment BRICS media Building your Brand Business Business cards Business End Goal Business opportunities in Serbia Business Owners Business plans Business Software Now Buyer Personas Capitec launches ‘Scan to Pay’ feature in its app Career myths Certificates of Designation CFO Change Challenge Change is the new Normal Charitable Partnerships Chefrome Classification (including Co-working space Coinbase Commission plan (if applicable) Community-as-a-Service: A Business Model for the 21st Century Compete with Big Companies Content is the key Contracts or proposed transactions to which the Company is a party or by which it is bound which involve obligations of Copper Intensity Copyright Coronavirus Outbreak Corporate entrepreneurship Corporate Multi-nationals Corporate to Start Cost reduction Credit cards Cruise Automation Cryptocurrency Customer Experience Dealing with online hate Definition of Goal Derailing your career Deutsche Telekom Digital India Digital Marketing Digital Marketing Strategies Digitizing your business Diligence Checklist Director of The Hindu Publishing Group of India; and Dr Iqbal Survé Directors Directors or consultants. The Company’s employee handbook. If the Company has any foreign employees Disney Do We Need A New Value-System For Professional Survival In A Post-Pandemic World Don’t Make These 6 Big Mistakes When Starting a Business DoorDash Dubai Dubai opportunity for start-ups Economies Electric Vehicles Elevate Customer Experience Empathy-Based Marketing Employee Well-being Employment agreements and offer letters with severance benefits or vesting acceleration provisions. Any plans Energy Energy business Entrepreneur Entrepreneurs Entrepreneurs share their thoughts on the topic Entrepreneurship: The Adrenal Rush of Riding a Bike Epic Games Etc. Executive chairman of Independent Media of South Africa Executives Facebook Family Business Favour of casual work Fear of failure Feel lost Feeling lost Financial cash flow forecasts Find a job you love Finding a work-from-home job option First deputy editor-in-chief of Russia’s Rossiya Segodnya; Narasimhan Ram Follow the evolution trends of media also and be “leaders” in. Innovative development Follow Your Dream Confidently Game development in marketing Garib Kalyan Yojana Gas Girls in business Global cloth brands Global market Gold Government Great managers way Guide to Hiring Employees Happiness Hard Work Might Not Pay Off Harsh reality and facts of the startup ecosystem He added. Jose Juan Sanchez High Expectations to Live the Life Hire Hobby into a business How Is Automation Able To Help Insurers To Recover In The Pandemic? How Much Do I Raise for My Startup How you plan to grow your business If an employee If any. A corporate entity organizational chart If available. judgment Imperfect Progress Importance of Time Management in the Workplace Including Including employee confidentiality and proprietary information agreements. insurance policies held by the Company or of which the Company is a beneficiary and a summary of such policies Including grant dates and exercise prices. Copies of agreements relating to outstanding options Including issuance dates and original issuance price. A list of the Company’s option holders Including SnapScan and Zapper Including title Including without limitation Incubation Incubator India and South Africa India Oman Business India-Oman Instacart Instruments Investment Investment memos It’s OK to Quit (Your Job) Jobs Joy happy Kids Kind Is Not Always Good for Corporate World Leadership qualities Lean canvas Lease Legal Tech Companies Liens Life is good Like Huckabee CPA Love your job Manage people who are older than you Management Marketing Marketing automation Marketing Teams Microsoft Microsoft invests in Cruise Might Just Change My Life Millennial Mind Morality Impacts Valuation Mortgage Motivated when your business Fails Move Your Shop Online Mumpreneur NDAs Neurodiverse New Jal Shakti Ministry New Job Nice guys finish last Notice of exercise and restricted stock purchase agreement). If the Company sponsors a 401(k) plan Nurturing and Mentoring Talent Office Culture Office Décor Oil Online entrepreneur Or any affiliate thereof Or evidencing any agreements among the Company’s shareholders or between the Company and its shareholders. A summary of the vesting schedules of any stock or options subject to vesting Or outside the ordinary course of business. A list of officers and directors. If any officers are not currently devoting 100 percent of their business time to the Company Or payments to Or strike or other labor dispute. Information Regarding Employees and Employee · Benefits A list of the Company’s employees and consultants Or sublease of real property. Any documents evidencing indebtedness for money borrowed or any other liabilities incurred by the Company. Any documents evidencing any mortgages Order Pandemic Pandemic ready Patents Pension plans and insurance plans. So forms of agreements used in connection with any stock option plans. (such as a form of option agreement Person You Wanted to be as a Kid Petrocrats Please note them on this list. Information Regarding Disputes and Potential Litigation Any correspondence or documents relating to any pending or threatened action Power Powering African Countries PRASAD Scheme President of Brazil’s CMA Group; Sergey Kochetkov Private Fund Data Operations Production Promotion Proof of tax compliance Proprietary information or technology Public relationship Publishers Grow Purpose-led Qualities of a good mentor Quantum Computing Quitter Reaching Goals Recently the well known startup incubator /seed accelerator Ycombinator Recruitment Relationship and marketing Remote Work Resilience as a business leader Revenue Capture Reviving the economy and building a community with a shared future Rights Rights (including conversion or preemptive rights) or agreements for the purchase or acquisition of any of the Company’s securities Russia Safe Path Said. He Samarjit Mitra Sample businessplan Saudi Arabia Scalable and sustainable business model Scale of personality School term Select an idea SEO SEO strategy Separately list (by country) all benefits provided to foreign employees. Of course Skill India Small Business Small Business Owners Small businesses SMART CITY- A Step Into the Future Smart phone Smuggling Sony Electronics Announces New Airpeak S1 Professional Drone Sowing future growth Start-up India Start-Ups Starting Your Own Street Food Business Startup Startup Fails Startup Fundraising Startups Stay relevant and grow Stock market Stock option plans Stocks Stop Comparing Your Life with Others Stress in business Stressed At Work Structural Readjustments Required in B-Schools Structuring Investment Subrata Chattopadhay Successful Contingency planning for Business Suit or proceeding or investigation Taking money from an investor and on any terms cannot hurt Target bonus (if applicable) Tax computations The Company in excess of $25 They expressed the hope to further deepen the cooperation among. BRICS media Toxic Workplace Tracking SARS-COV-2 Variants of Concern Trade secret or other proprietary rights Trademarking Turn your sales UAE Labour Law: All You Wanted to Know About Leaves Understanding Understandings or proposed transactions between the Company and any of its officers Unified Mobile Application Union representation Unknown and Unplanned Vaccine Rollout Values back on track Various Types of Investors VC Virtual Marketing Virtual reality VR Wages Warrants Washington State Recruits Starbucks to Help With Its Covid-19 Vaccine Rollout We suggest working with an experienced startup-focused accounting firm Well before your startup is in the due diligence phase of an important fund raising or m&A transaction. What Do LPs Think of the Venture Capital Markets: What financial metrics/benchmarks do VCs look at (such as ARR What Is Working Capital What VCs Really Look For Whether the employee is exempt or non-exempt) and state of residence. The Company’s standard form of offer letter. Any agreements Whether written or oral Why Business Angels do not invest Why practising good self-care is a recipe for Success With employees or consultants). Such employee benefit plans With members also pledging joint efforts. To improve the forum mechanism also and step up post.-Covid-19 exchanges and cooperation among BRICS media. In the fight against Covid-19 Without limitation Women in business Women mean business Workers Working Capital World Embraces Phygital World leader summit World of the Red Gem Writ or decree by which the Company is bound or to which it is a party. standard forms of agreements used by the Company. joint venture and partnership agreements. management Ybersecurity in the metaverse era You should be thinking about preparing a due diligence materials which includes financial documents such as P&L statements You’re Overworked Your cap table and more. Other documents to be retained will include incorporation and constitutional documents (that evidence legal ownership

© All Rights Reserved.