"This is a model known as Innovate - Leverage - Commoditise (ILC)" -- +Simon Wardley #readingToday If you commoditise an act (A to A) to a more industrialised form which enables others to innovate (B, C, D) then you can leverage the consumption of your underlying component (A) by others to detect successful changes (e.g. D to D). You can then commoditise any identified successful component (e.g. D) to a more industrialised form in order to repeat the process. Hence by being a first mover to commoditise (A to A) and by exploiting consumption information then you are constantly in a position to be a fast follower (D to D) to any successful change without incurring the heavy R&D risk because everyone else is innovating for you.This is a model known as Innovate - Leverage - Commoditise (ILC) and it's fairly old hat having first been applied pre-2005.