pa TT erns 59 unbundling b usi ness p a TT ern s Product Innovation Customer Relationship Management Infrastructure Management Economics Early market entry enables charging premium prices and acquiring large market share; speed is key High cost of customer acquisition makes it imperative to gain large wallet share; economies of scope are key High fixed costs make large volumes essential to achieve low unit costs; economies of scale are key Culture Battle for talent; low barriers to entry; many small players thrive Battle for scope; rapid consolidation; a few big players dominate Battle for scale; rapid consolidation; a few big players dominate Competition Employee centered; coddling the creative stars Highly service oriented; customer- comes-first mentality Cost focused; stresses standardization, predictability, and eΩiciency THREE CORE BUSINESS TYPES Source: Hagel and Singer, 1999. bmgen_final.indd 59 6/15/10 5:33 PM