Doing nothing?

A recent Harvard Business Review article discusses 4 basic classes of business models: asset building, service provision, technology creation and network orchestration. The last of these is increasingly seen and is represented by such businesses as Airbnb and Uber. What these businesses do is orchestrate networks of people, but they don’t actually produce anything themselves. They might even be said to do nothing. But according to the Harvard Business Review article they actually perform better than companies based on one of the other business models. Worth thinking about.

Reference: Libert, Wind and Fenley (2014) What Airbnb, Uber, and Alibaba Have in Common. Harvard Business Review.

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