The ascent of the customer

From 1984 to 1994, IBM and DEC lost $55 billion in market value while Microsoft, Intel, EDS and Novell were gaining $80 billion. The re-allocation of value within the computing industry was rapid and dramatic. Why the dramatic shift from front runner to bringing up the rear? They didn't know their customers...well enough. As a result, their method of "doing business" didn't work. Value migrates from outmoded business designs to new ones better able to satisfy customer's most important priorities. A business design is how a company picks its customers, defines and differentiates its offerings, decides what it will do itself and what it will outsource, how it decides on and obtains the necessary resources, markets it to the customers and captures profit. It is the entire system on which the organization thrives or withers and dies. An intertwining "eco" system of activities and relationships that feed off each other, and at its center is the customer. The author discusses the factors that affect customer decision making, and then discusses business design.