Global CIO: Apple's Steve Jobs Torpedoes Another Stale Business Model - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Government // Mobile & Wireless
05:02 PM
Bob Evans
Bob Evans

Global CIO: Apple's Steve Jobs Torpedoes Another Stale Business Model

Jobs and the iPad are revolutionizing the book business while picking a big fight with Amazon. What can you learn?

Apple's business model for books, which the company has kept under tight wraps, shifts the focus away from the bargain-basement prices Amazon has made popular, according to publishers that have met directly with the company. Apple is asking publishers to set two e-book price points for hardcover best sellers: $12.99 and $14.99, with fewer titles offered at $9.99. In setting their own e-book prices, publishers would avoid the threat of heavy discounting. Apple would take a 30% cut of the book price, with publishers receiving the remaining 70%.

Apple's vision is at odds with, which has shaken the book industry by slashing prices of e-books on its Kindle reader and making the $9.99 e-book bestseller a fixture.

The Apple tablet aims to reshape many corners of the media industry, just as Apple's iPod revolutionized the music business when it made its debut in 2001. Apple has been in discussions with television networks, magazines and videogame publishers about featuring their wares on the device. On the eve of the launch, it wasn't clear to some people briefed on the matter whether Apple had made a final decision about wireless connectivity or the carriers involved.

In closing, two thoughts: first, for all of Jobs' brilliance and persuasiveness and the awe in which he's held, it would be unwise to underestimate Amazon, which itself knows more than a little about technology-driven upheavals, consumer-centric thinking, and revolutionary business models.

And second, it's human nature for all of us to see something like this and think, "WowI'm glad that kinda craziness will never hit my business." But it's also terribly nave and short-sighted, particularly for CIOs charged with helping establish vision and innovation and fresh thinking and forward-looking business models in our increasingly tech-driven world.

Get together with your CEO and start asking the hard questions about what an upheaval in your business might look like, where you're vulnerable, and where you're underleveraged and could create some big opportunities with some aggressive and model-busting ideas.

Because when it comes to torpedoes, it's always better to give than to receive.


Global CIO: Will Steve Jobs Ban Google From Appleworld?

Global CIO: The Top 10 CIO Issues For 2010

Global CIO: Apple's Next Billion-Dollar Idea: The Enterprise Mobility iCloud

Global CIO: iPhone Users Stupid And Steve Jobs Greed, Says WSJ

Global CIO: Steve Jobs Is Bugs Bunny But Microsoft Is Elmer Fudd

Global CIO: Oracle-Sun Biggest Challenge Isn't TechnologyIt's People

GlobalCIO Bob Evans is senior VP and director of InformationWeek's Global CIO unit.

To find out more about Bob Evans, please visit his page.

For more Global CIO perspectives, check out Global CIO,
or write to Bob at [email protected].

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
2 of 2
Comment  | 
Print  | 
More Insights
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Flash Poll