Baptism by Fire

 

Discussion about business models was one of the signature items of the New Economy. The business models were not introduced by the New Economy, but they were made a regular part of the business vernacular by the Internet explosion. The promise of the Internet was that it was going to change the way business was traditionally conducted, and business models were the reference point for it. The general argument was that the Web was making the traditional business models uncompetitive and that New Economy business models would take over the business world.

Now in the aftermath of the New Economy implosion, such talk is no longer heard. But the New Economy business models still exist, though they have undergone an evolution that could be represented by the metaphor of "baptism by fire." Enough time has elapsed and a sufficient number of case studies have been developed for us to take stock of these new business models, even though the Web business models are still as misunderstood as they were before.

A report card on business models of the New Economy would be an interesting read. It would help us find out which ones have succeeded and which ones have failed. It would also enlighten us with factors that surviving companies have found to be critical to their success--factors that companies found to be critical for preventing failures. The …

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