Shifting the trade-off between richness and reach melts the informational glue that bonds business relationships. It deconstructs value chains, supply chains, franchises and organizations.
By tradition, the economics of information delivery has been governed by the tradeoff between richness and reach. The essence of this tradeoff in advertising is that, in the non-networked world, an advertiser was forced to make a choice, reach a lot of people with a very general advertisement or reach a smaller number with a more customized, perhaps even interactive approach. The power of the Internet in terms of advertising is that it quite simply wipes out this tradeoff. Reach, which makes up one of the axes, refers to the number of people, at home or at work, exchanging information. Richness, which makes up the other axis, deals with the quality of information. An ad broadcast during a major car race or sporting event has great reach, conversely, a personal sales pitch reaches only one person.
A valid approach to identifying architectures for business models can be based on value chain deconstruction and reconstruction, that is identifying value chain elements, and identifying possible ways of integrating information along the chain. It also takes into account the possible creation of electronic markets. By removing the “Glue” that keeps these chains locked together with one another, it helps them take focus on breaking down their structured base and analyzing it. With this information they can then find out where it is best to add or remove richness and reach strategies.
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