Business

Currently many business being created on the Internet today are simple combinations of existing ideas.

1. Subtraction: Removal of components (Simpler content management system tuned for a specific niche.)
   


2. 
   Multiplication: Add modified copies of existing components (More hosting space)
   


3. 
   Division: Separate product into individual components (Google maps api allows for the creation of sites which only need parts of the whole)
   


4. 
   Unification: Extend the use of an existing component so that it provides additional value (Otherwise known as Mashups - Google maps and a crime database to display crimes on a map)
   


5. 
   Dependence: Change the relationship between the product and its environment (Load balanced web sites, backup and fail over systems)
   

This is known as “Systematic Inventive Thinking (SIT)".
Paul Eisenberg has a post with some classic examples

Om Malik explains the Microsoft method of product development with a comparsion to Macy's.
http://gigaom.com/2005/11/04/what-do-macy-and-microsoft-live-have-in-common/

In the fashion world, haute couture designers like Tom Ford and Dolce & Gabana create eye-popping outfits, that impress the fashionistas worldwide, and generate gushing headlines around the planet. A few hundred of them are sold at prices high enough to pay off the debt of some struggling nation. However, a few months later, pale imitations of that daring vision start to show up in mainstream stores like Macy’s, and thousands of consumers buy them. That’s when the real money is made.

Today million of people run small businesses and want to develop income on the side. Both google and ebay first created a great site with good traffic. Then with their traffic they empowered businesses to earn money rather then attempt to hoard it. The result is they receive more traffic then otherwise.

By prompting people to create web sites and providing a way for income people and businesses of all sizes exist. Google and ebay have inspired people to create new products and services. By inspiring others to startup new businesses both these companies have added plenty to their bottom lines.

Is your next business idea going to inspire others ?

Link: Charles Verge in Business Comments: (0) Trackbacks: (0)