Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Friday, March 11, 2005

Verticalization, Pt 2

I think it's important to be clear about what verticalization means. It's not rebranding the same model across different domains - it's tailoring and remixing components of the dominant design for maximum efficiency within each domain. It's a game of recombinative innovation.

Peerflix, I think, demonstrates how. By remixing the market-making component of the switchboard model (ie, by replacing auctions with simple matching), Peerflix achieves a model which is inherently more efficient than eBay (etc).

Now, whether we're talking about search, as Battelle does, or b-model economics, as I'm doing - the point remains that verticalization implies tailoring the model to a specific domain.

If this seems obvious, I'm only going on about it because I can feel a lot of entrants who don't do much more than rebrand an old model - which is a surefire recipe for failure.

Next verticalization entry will discuss why industries fragment...

-- umair // 12:03 PM // 0 comments


Recent Tweets


    uhaque (dot) mba2003 (at) london (dot) edu


    atom feed

    technorati profile

    blog archives