Customer needs evolution, business paradigm innovation adaptive goodness

摘要

This paper attempts to draw some strategic implications including a significant innovation indicator about how to innovate business paradigm while customer needs evolve based on WTP (willingness to pay) function & customer needs evolution model through the experience of industrial hegemony shifts in the world telecom industry. Those are: (1) as needs evolves, the optimal business paradigm that will likely guarantee the maximum expected profit does also vary (2) only innovative firm adapting to needs evolution can survive & thrive (3) adaptive goodness as a measure of how closer to the optimal business paradigm must be a much more decisive indicator of business success, especially in the situations where customer needs evolves so frequently or customer's power is stronger than that of a firm, rather than (sustainable) competitive advantage having been prevailing as the determinant of business success.