Business Model Innovation – How to successfully adjust your business strategy
Did You Know…
…that 70% of organizations have deployed or are considering the deployment of subscription services? Quite an impressive number, which shows how companies are currently seeking for new business opportunities to ensure their revenue. Innovation is key to enable future success and to be prepared for future growth. But how to define the relevant strategy and what to focus on?
Pick from three options to adjust your business strategy!
Depending on the individual situation of a company, there are different options to adjust the strategy:
The focus can be to OPTIMIZE current processes to achieve a greater productivity and performance.
An EXTENSION of the current business means to capture new sources of value and to adjust current business processes. This could for example mean an extension into new market segments or regions. Omnichannel business could be established, or additional services can be wrapped around physical products – this makes the offering more attractive to the customer.
TRANSFORMATION finally focusses on the implementation of new business models and a conversion of value chains based on innovative new ideas. Companies want to put themselves into a position where they are ahead of their competitors and can innovate with a quick time to market.
Innovative business models are based on services and subscriptions!
And one big trend finally is to use subscription and service-based business models instead of selling one-time products or services. Companies add additional services to traditional products and sell them as a product bundle – based on subscriptions or based on individual usage. This enables a more consistent revenue stream and end customers only pay for what they have used. Examples for these business models can be seen across all industries: music streaming, car or bike sharing instead of buying a vehicle or also rent machines or equipment and pay according to the individual usage, e.g. pay for printed pages instead of buying a printer.
And there are many more examples! Watch the following videos to get some insights on examples from Financial Services as well as Chemicals.
Realizing these new and innovative trends also brings some new challenges. The billing process is much more sophisticated and flexible pricing models need to be established, considering for example volume based or tiered pricing. Subscription contracts need to be managed in the system. Also, a switch from B2B to B2C models might occur – which typically increases the document volume drastically and requires completely different and more automated processes in the system.
Want to learn how to move forward?
Join our next expert session on “How to successfully adjust your business strategy”!
In this session we will further elaborate on the different options to innovate and we will dig-into the resulting process requirements and how to successfully implement them.
We are happy to invite you for this session on April, 20th Just learn more about the expert-series and register here:
We are looking forward to seeing you!