Business Innovation, New Models
Reinventing your business is essential to survive in the longer term. The need to relook at current and future business models is mostly coming from the outsite, your competitor is doing things differently or a non competitor is getting into you market space. Great companies are prepared for that and relook their business model on a regular bases before the need is recognized from the outside.
Alexander Osterwalder has given us the Business Model Innovation Canvas that helps us understanding our current models and how to change current structures or implement innovation in our business models. But there is more to consider.
Organizations must renew their business model continuously in order to remain competitive and profitable in the long run.It takes more than drawing up the Canvas, it requires vision on future scenario's, generating multiple Business Model Options. And when new busines model(s) are on the drawing board?
Your (new) business model(s) need validation, checked on the inside and outside of your organisation. Can your suppliers, Partners and Channels deal with your next level of business model.
Last but not least, implementation of new models requires a managed change within your organisation and adaptation of operations and systems.
Look at your business as a startup, creating prototypes and testing your proposition with your foreseen targetgroup. Learning from Startups, their successes and failures brings many benefits to the equation. Startups make few business plans, they focus on the proposition, customer needs and understand speed is of the essence. Not only to be ahead of competition, but to generate feedback from the market in order to modify and adapt where possible. (read the book of Eric Ries, The Lean Startup)
How does this work in larger organisations? Can this be done in corporate cultures and structures? No doubt this can be deployed in larger organisations.
History has shown us that there are many examples where business models have been changed not only in smaller but in larger organisations as well. These are the companies that survive and remain as leading organisations.
Current and future developments in technology and behaviour require us to adopt to new models, new ways to reach our customer. Saas, LTE, IoT, Fiber, augmented reality, Social Media, Big Data, and many more developments will force us to rethink our business and innovate the models we currently use.
AITEM has been leading business model innovation sessions with different companies and has lectured Business Model Innovation at the University of Rotterdam.
If this article inspires you to discuss what this means for your organisation, and how AITEM can help you in this process, get in touch with us through our CONTACT page.