- Despite the theme of death ... the middleman have proven remarkably robust in many sectors! Why?
- The Middleman's long Value Chains HAVE been taken apart, but they've been put back together in new better configurations.
- Mark Twain: Reports of the death of middlemen have been greatly exaggerated!
- Conclusion: Dramatic changes ARE tranforming (but not destroying) the business of many intermediaries! (Farmers to Transportation example)
- Most Common Problem: Serious breakdown between what intermediaries do and how they charge for their services. (Commissions, percentages, and markups)
- Fact: Middlemen are MORE than they appear. They add value at any steps of the value chain. It was just the connection between their value and their fees that was lost.
- The networked economy disctates that this "Connection" be found, and thru the revamping of current business models.
- Back to One Basic Premise: Change or Die. If you survive, it probably because the nature of your organization and it's business model has changed.
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