Before You Innovate, Understand the Business Model of Your Industry
The term "business model" is often bandied about in the mainstream media as a way of capturing the essence of how a company makes money. To keep things simple for the home gamers, the media usually reduces the term "business model" to something impossibly simple - as in "advertising" or "paid subscriptions." When you talk to insiders, though, the reality is often much more complex and textured. In some cases, the way you think an industry makes money turns out to be nothing more than fiction.