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 our business models to that.
But: What are business models about? Why are they so important today? How can we create and shape them close to our customers? Our EARLY BRANDS insight gives some inspiration about that. This article is an invitation to think in new playing fields of the future – to successfully rock forward.
WHAT’S THE DEAL WITH BUSINESS MODELS?
When we google “business model“, we get more than 2,500,000 results – many different definitions for one single term. In a nutshell: a business model makes transparent how companies create, express and assure values. We from EARLY BRANDS understand business models as playing fields for the economic success, competitive edge and innovational power of our clients.
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 tomorrow. 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 needs 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.
For example: How does the future of car dealers look like, when customers are able to configurate and buy their car digital direct from car manufactures? What about car maintenance as electric vehicles do not need many mechanical spare parts? What if passengers of autonomous vehicles do not need any advice from their VAG retailer as artificial intelligence answers all questions? What will Ikea, Dänisches Bettenlager & Co. in 2020 look like, when we buy mattresses online with direct to consumer home delivery already in 2018?
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?
We from EARLY BRANDS support leading companies with that – adapted to their needs and objectives and with passion and curiosity. How can user-relevance and price acceptance of new products and services be measured? Another important element for your business model: key figures for business success (KPI) – from a company as well as a customer point of view.
As you can see: there are many different playing fields and elements to successfully create and shape business models for your company.
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 EARLY BRANDS 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 are dependent 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.
In our EARLY BRANDS office in Bremen, our experts deal with innovative business models day by day – in inspiring workspace locations or on-site to our clients. According to our experience, innovative business models have huge leverage effects for business success in the digital age: for Coca-Cola, HypoVereinsbank, JDE, tesa, leading SME’s or technology corporations.
Certainty, also for you. Get started today! Create new playing fields for your future business!
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 of time. 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.
We from EARLY BRANDS Innovation & Technology Consultants can support you – straight to the point and with focus on the pulse of the time.
Catch the Future…!