Business Model Innovation
Many people believe that the fourth industrial revolution – the connected world – is the time when everything will be linked together: people, things and places. An automated world through new technology, robotics and artificial intelligence. The impact of the paradigm shift will likely hit hard in a variety of areas. As a consequence, this opens up for new and creative business models.
Innovative business modelling, identifying new revenue streams, is crucial for all companies and organisations. In recent years we have heard lots of warnings reminiscent of the tale of the the boy who cried wolf. The wolf characterised as Über, Netflix and Spotify. It is no coincidence that the transportation-, film- and music industry has been challenged by disruptive business models. Their ways of conducting business were obsolete.
The following characteristics defines obsolete business models:
- Established companies in mature industries
- Archaic IT systems
- Weak data access
- Complicated structures for production, sales and distribution
- Lacking business processes
- Declining revenues and margins
- Competing with price
- Low digital maturity
- Low desire for change
When a business or industry is struggling with one or several of these factors it will often lead to:
Mega competition > Price competition > Lower sales > Lower margins > Threats from niche players and start-up companies
If we keep crying ”Wolf!” one of two things will happen, we will either become afraid of wolves seeing them everywhere, or we will stop listening to warnings altogether. One may wonder which is worse?
Business Model Innovation is the approach we use to revitalise a stale or worn out business. We identify new values and new revenue streams for our clients’ existing value chain.