In the fast-paced world of business, staying relevant means more than just keeping up; it means leading the way and being the best at what you do. Gone are the days when new business models were solely the domain of startups. Today, they are in flux as enterprises have to adapt to change continuously while avoiding risks and seizing new opportunities. Investments, new revenue streams, and the capital deployment are just a few reasons why business models have to keep evolving. So, how do you modernise a business model and build a solid and efficient team that can oversee the business processes?
Foresight and Modernisation
It’s all about putting customer value first, so start by developing a solid business case for the modernisation effort, showing expected value and innovation. Explicitly include the most important outcomes for customers. Articulate, with clarity and precision, how each facet of the new model will contribute to the end goal.
In this regard, Mark Johnson said, “Modernising business models can transform organisations and reshape entire industries.” He co-founded Innosight, a Massachusetts-based innovation consultancy that focuses on strategic matters. “But it’s essential to target those customer needs that have previously been unmet.” He added that the core model could be kept under control while new business models were being tested.
After assessing the existing business model, companies can update it, determining and prioritising what needs improvement first. Evaluating both internal and external factors impacting a business model can guide the revision. These factors include technical innovations, new customer demands, regulatory changes, actions of competitors, and more. Throughout, it’s teamwork – everyone pulling together and singing off the same song sheet for a common objective. Customers value consistency and product value so by getting the message right to the consumer, it becomes a win-win situation.
Before Modernising a Business Model
To achieve productivity and future growth, it’s essential to identify the risks and opportunities that result from the factors mentioned above. For they impact a company’s value proposition, pricing structures and income streams, channels, key resources and activities, plus a lot more.
Before companies can update their business models, they must assess their current ones. Sanjay Kalrani, a consulting partner and advisor at Tata Consultancy Services, thinks the business model canvas is an excellent starting point. “With the business model canvas, you can view the big picture and align stakeholders. It helps them come to an agreement on all business blocks,” he said.
A visual framework, the business model canvas lets companies describe and design their business model or put it to the test to stay profitable in light of market shifts. Take revenue streams; each income stream can impact other blocks depicted on a canvas. “With the business model canvas, companies can work through each building block. They can start with the key activities block and do a deep dive into processes and business capabilities,” says Sanjay Kalrani. “That way, enterprises take stock of strengths and weaknesses. After all, companies need to know what they bring to the table.”
Kretov Aleksandr on How to Modernise a Business Model
After assessing the business model, companies can update it, determining and prioritising what needs improvement first. Evaluating both internal and external factors impacting a business model can guide the revision.
Successful entrepreneurs understand that business is not static. It’s a dynamic entity that requires constant evolution. “Innovation is the heartbeat of a successful enterprise,” says Kretov Aleksandr. He suggests, “Businesses should envision diverse scenarios that consider technical innovations, shifting customer demands, regulatory changes, and the strategies of competitors.”
A forward-thinking approach is not just about staying current; it’s about anticipating change and positioning the business ahead of the curve. Businesses should envision different scenarios to address all of the above. Finally, commensurate with the most auspicious and viable idea, they can follow through with the plan and revise the business model.
Empowering Teams During Modernisation
To build a solid and efficient team capable of overseeing business processes during a modernisation effort, organisations need to focus on key strategies that empower their workforce. Start by fostering a collaborative environment where communication is open, and ideas are encouraged. Teams should understand the overarching goals of the business model modernisation, ensuring that everyone is pulling in the same direction. Provide training and resources to enhance skills, especially those related to technological advancements and evolving market dynamics.
Additionally, encourage a culture of continuous learning and adaptability. Recognise and reward innovation within the team, reinforcing the importance of staying ahead of the curve. Implement agile methodologies to streamline business processes and respond swiftly to changes. Finally, ensure that each team member understands their role in the overall strategy and how their contributions contribute to the success of the modernisation initiative. By combining a forward-thinking approach with a well-aligned and empowered team, organisations can navigate the complexities of modern business with resilience.
Navigating the Dynamics of Modern Business
Reflecting on the insights shared by visionaries like Kretov Aleksandr, a clear narrative emerges – the future of business is a dynamic journey that begins today. In a world where standing still means falling behind, the evolution of business models becomes paramount.
Modernising a business model is not a one-time event but a continuous process. It necessitates a holistic approach – from prioritising customer value and envisioning diverse scenarios to assessing and adapting to internal and external factors. The process involves a collaborative effort, with teams aligned towards a common objective and a commitment to fostering a culture of adaptability.
In essence, the key to longevity and success lies in an unwavering commitment to modernising processes, embracing technological advancements, and anticipating change. As businesses navigate the ever-evolving landscape, they must not only stay current but position themselves ahead of the curve.
By adopting a forward-thinking mindset and executing plans rooted in the most auspicious and viable ideas, businesses can not only survive but thrive in the face of change. It is through these strategic endeavors, like revising the business model, that companies can secure their place as leaders in the fast-paced and ever-changing world of modern business. The future, indeed, begins today.