5 BUSINESS ORIENTATIONS – IN DYNAMICS
5.1 Discovery triggers between Business Orientations
A new discovery in one Business Orientation can trigger development in other Business Orientation(s). For example, the appearance of an airplane (Product) led to the development of airlines (Self-Service), the appearance of e-shops (Self-Service) brought (Expert) jobs like web masters, (Expert’s) solution for NASA astronaut suits enabled the development of a more efficient firefighters’ suit (Product) etc.
Major changes in all Business Orientations are triggered by the discovery of a new commodity-like resource or technology—for example, oil and gas replacing wood and coal, or digitalization replacing paper processes.
Technological changes increase productivity across all Business Orientations. A prime example is Artificial Intelligence and its commoditization impact on software procurement. The first form of procurement is Expert Orientation, where software is custom-made for specific customers. The second is Product Orientation, where general customers purchase software delivered to the market by producers in regular cycles. The third is Self-Service Orientation, where users meet their software needs by accessing the provider’s system (Software as a Service – SaaS). The fourth, emerging form is Commodity Orientation, where customers purchase AI capacity and use it to create software tailored to their specific requirements. This approach is analogous to purchasing electricity on the commodity market to generate and power various electrical devices.
The cost of acquiring software with the help of AI will be the lowest across all economic sectors and Business Orientations, as it reduces the need for developers, marketers, and other intermediaries.
