Business Model: Create the future today
BUSINESS MODELS – WHO, HOW, WHAT AND WHY?
Create playing fields for the future – be quick and creative
Digital transformation. Complexity and dynamics. New technologies and innovations. Our time is spinning fast and getting faster. Even if we make efforts to calm down and relax by doing some yoga or meditation – our businesses are forced to keep one finger on the pulse of time. It is essential to anticipate market needs of tomorrow already today. And continuously align business models to that. What are business models about? Why are they so important today?
WHAT’S THE DEAL WITH BUSINESS MODELS?
When we google “business model“, we get more than 4.710.000.000 results – many different definitions for one single term. In a nutshell: a business model makes transparent how companies create, express and assure values. We understand business models as playing fields for the economic success, competitive edge and innovational power of our partners.
BUSINESS MODELS – THE WHY AND WHEREFORES
While automobiles needed more than 80 years to be established in 50% of the population, Apples’ iPhone was rolled out in just 8 years. That makes clear: Those, who do not put one eye on the challenges of tomorrow, probably disappear the day after. In the dynamics of our time, life expectancy of companies with static business models is steadily decreasing. Why? Rapid changes within the digital age continuously challenge companies. Customer and user need steadily change. Competition increases: cross-market and cross-industry. Digital Natives are skittish. Loyalty is more like an alien concept. New startups and innovative services from blockchain to artificial intelligence (AI) edge into our markets day by day.
WHAT ARE THE KEY ELEMENTS OF A BUSINESS MODEL?
Ever since the stone age, every business model needs a clear and market-relevant unique value proposition for their target and user groups. According to out-of-Africa theory, already 7,000 years ago dugout canoe achieved a unique value compared to commonly used rafts: crossing seas and oceans without getting wet feet.
Which problems in your playing field (market) can better be solved with innovative products and services (solution) compared to current solutions? What are (new) income streams? How does the cost structure look like? These are key questions, when creating business models.
Another element: WOW! factor. What inspires customers? How to reach differentiation from competition? That is a key point to be defined – in collaboration with employees, partners and users. So that business models come to live. Apple’s fist iPod has been a WOW! – easy to use, stylish cover with unique setting dial (Jogdial) to select songs quick and easy. Amazon’s WOW!: product recommendation “What other items do customers buy after viewing this item?” Also, the first joystick inspired with “rapid fire” already 30 years ago. In sum: What is your business models’ WOW!? How can you steer the WOW! into user-relevant directions?
HOW TO (FURTHER) DEVELOP BUSINESS MODELS?
EARLY BRANDS business model development = quick + agile + close to markets and customers. We do not need detailed strategies. Developing innovative business models close to markets requires agility and premature integration of users and customers.
Continuous user feedback from day 1 is essential. Employees, partners their ideas and thoughts are key success factors. Focus on empathy and needs.
Creative tools and innovation methods like business model canvas, use cases, build-measure-learn with user feedback or Innovation & Technology Scouting are very useful. But: you need an awareness that business models are not perfect. And they do not have to be. They depend on new impulses. Thus, develop business models step-by-step. Explore, test and incrementally improve each business model element. Always remind yourself: the wheel does not always have to be reinvented. Even small changes can cause big leverages.
BUSINESS MODEL – HOW TO ROCK FORWARD?
It’s clear as daylight: our world rapidly moves forward. Nobody can pause and enjoy success with existing business models. Successful products and services are not a remedy and success guarantee for the future. Thus: continuously challenge yourself. Keep one finger on the pulse. Develop business models close to markets and put things on the right track at the right time. As markets, customers and technologies constantly change it is vital to continuously adjust and enhance business models. With different playing fields.
This is precisely where we at EARLY BRANDS Innovation & Technology Consultants provide support. Precisely. Individually. And with a focus on values for next generations.
Catch the Future…!