Shortly after World War II, with the coming of the airlines and the US interstate highway system, American railway owners misunderstood they were in the transportation business, not the railway business.
As a consequence, they missed the opportunities to get into the new markets and most of them died.
This is true today as new technology and changed economic circumstances batter old, established industries.
Newspapers for example are not in the newspaper business, they are in the news business and fixating on paper as the medium to deliver that news leaves them struggling to adapt in a world where the main source of news is increasingly the Internet.
We see a similar thing with telephone companies wedded to their old copper networks or car manufacturers building fuel guzzling road yachts.
Recent comments by Rupert Murdoch about charging for content along with Associated Press’ attacks on Google show how the traditional channels are struggling.
This trend is bigger than news or media organisations, the developing communication channels using mediums like Facebook and Twitter are going to challenge many organisations and change the way business is done.
Business is far more open and transparent, good and bad reviews of your organisation travels further and faster than before.
Your employees, contractors and customers are communicating in channels outside your control.
That’s just in the communication field. The changed economic environment means even more challenges to established businesses.
So the question is what exactly is your business? Which of your customers’ needs does your business fulfil?