In these tough economic times, some CEOs are already looking to business model innovation to address permanent shifts in their market landscapes.
The key is to realise that success starts by not thinking about business models at all. It starts with thinking about the opportunity to satisfy a real customer who needs a job done. The second step is to construct a blueprint laying out how your company will fulfill that need at a profit. The third is to compare that model to your existing model to see how much you’d have to change it to capture the opportunity. Once you do, you will know if you can use your existing model and organisation or need to separate out a new unit to execute a new model. Every successful company is already fulfilling a real customer need with an effective business model, whether that model is explicitly understood or not.
It has been found that new business models often look unattractive to internal and external stakeholders — at the outset. To see past the borders of what is and into the land of the new, companies need a road map.
The simple steps.
1.Realise that success starts by not thinking about business models at all. It starts with thinking about the opportunity to satisfy a real customer who needs a job done.
2.Construct a blueprint laying out how your company will fulfill that need at a profit.
3.Compare that model to your existing model to see how much you’d have to change it to capture the opportunity. Once you do, you will know if you can use your existing model and organisation or need to separate out a new unit to execute a new model. Every successful company is already fulfilling a real customer need with an effective business model, whether that model is explicitly understood or not.
A business model consists of four interlocking elements that, taken together, create and deliver value. The most important to get right, by far, is the first.
1.Customer value proposition (CVP).
2.Profit formula
3.Key resources
4.Key processes
As simple as this framework may seem, its power lies in the complex interdependencies of its parts. Major changes to any of these 4 elements affect the others and the whole. Successful businesses devise a more or less stable system in which these elements bond to one another in consistent and complementary ways.
Back to IngridLotze's Post, 'user_report.php?return_url=http%3A%2F%2Fwww.mybyte.co.za%2Fblog.php%3Fuser%3DIngridLotze%26blogentry_id%3D1548&TB_iframe=true&height=300&width=450', '', './images/trans.gif');){kind=spacer}
Inappropriate Content
’)