Hybrid Model
The hybrid model evolves when corporations try to optimize on both the cost and value dimensions. The operating components and the capability-building resources are often separated, sometimes with different managers leading each. Over the past few years, we have seen more companies trying to use the hybrid model. This reflects the evolving partnership between the I.T. function and the business community, as well as the increasingly urgent need to look at a corporation's I.T. spending and investment performance across major I.T. projects.

Fig 5. Comparison between an internet business and a traditional business

In-depth look into the Hybrid Model

Taking a hybrid approach creates more options for building competitive barriers that protect the profit stream. One such mechanism involves owning the hard to replicate assets associated with delivering after-sales support services to the customer.

Fig 6. Tradeoffs for different online structures

Next

* Contributed by -
Siddharth Mohan Patnaik, B.Tech. (Electronics),
Ravulpathi Janaki, B.Tech. (Mechanical),
II Year, IIM Lucknow.