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Posts Tagged ‘Nature’

Low-Hanging Fruit and the Re-Ordering of the Value Chain

In Internet Business Models on January 18, 2011 at 12:43 am

Source: Jamescapp02 on flickr

Outtakes from my post yesterday on The Scholarly Kitchen:

The machines of scholarly research and content dissemination require monetary input at some point(s) in the process in order to run. Despite this reality, many mission-driven organizations are uncomfortable acting as (or, in some cases, are ill-suited to be) commercial survivors.

Quoting Joe Esposito’s comment to Phil Davis’ recent post on OA competition between PLOS and Nature:

What fascinates me is that the governing boards of prestigious journals are interfering with the necessary moves to counter these developments. Author-pays open access is growing in strength but conservative boards do not always understand the competitive circumstances that their operating staff bring to their attention.

In open access journal publishing, more submissions + more acceptance + less/different forms of payment + increased use + varying levels of peer review translate (one hopes) to high impact factor = success. Volume (of content and use) are key drivers of success, but money is not absent from the process. Ultimately, it cannot be.

Another excerpt, further along:

Kent [Anderson] recently re-posted a round-up of “10 business models that rocked 2010“. Most of the models involved first building audiences and then working levers to generate financial wins (a re-ordering of old-school models in which a product was produced and marketed to audiences that were built over time, through sales).

The mechanisms for commoditization in these new-school cases included:

  • Selling customer data
  • Crowdsourcing ideas
  • Upselling high-volume audiences
  • New storefronts and cloud-based points of purchase

What strikes me as remarkable about these examples is how unremarkable the core transactions (what is being exchanged by whom) really are. The tools and re-ordering are new, but the commercial exchange of goods is very basic, ancient even. The more things change, the more they remain the same.

One of the big overarching differences is the reversal of the ordering sequence. Rather than if you build it, they will come these models conform to if you get them, you can build it (and ultimately sell it).

Read the entire post on TSK.

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