What is a Business Model and how does it sustain your growth?

Every ambitious company wants to grow. That is applicable for large, multinational companies, as well as for smaller companies, including start-ups. Growth is not a matter of size.

Over time, a successful company becomes very good at growing its core business. It continues to develop and refine the key business processes and metrics that ensure proper execution. Increasing efficiencies and improving operations are key capabilities where these companies excel at.

Either explicitly or implicitly, any company is operating according to a business model, which defines the way the company produces and delivers value to various customers, in a profitable way.

But what happens when an opportunity arises outside a company’s core, an opportunity to serve a completely new customer or an existing customer in a radically new way? How does the company react? What is the choice the company will make? These opportunities require a company to operate in a fundamentally different way.

For companies to sustain growth on a medium-to-long term, they must evolve into companies that deliver new sorts of value. It means leaving the comfort of their core and pursuing opportunities in unknown territories.

For doing that, they must develop new capabilities, new strengths, new way to make money. And that’s Business Model Innovation.

A lot of companies are trying to compete on superior products, services, technology, and price. They are stuck in an endless pursuit. Yet, the world’s most successful companies compete on superior business models, that can deliver more lasting competitive advantage, particularly in disruptive times. This is the secret formula behind their success.

We invite you to start the Innovation Journey together

Companies innovate to grow. But great ideas only work with a great business model.

As a starting point, we will offer you the opportunity to assess the strengths and weaknesses of your current business model by filling in a simple tool. SWOT Analysis is familiar to many business people. It is attractive because of its simplicity. The results of this exercise provide a good basis for further discussions and can become the foundation for business model change and innovation in your organization.

A structured SWOT analysis of your business model reveals two important elements:

• It provides an overall picture of where you are now (Strengths and Weaknesses), and
• It suggests some future trajectories for your business (Opportunities and Threats)

This is a valuable input that can help you design new business model options toward which your organization can evolve. Your growth strategy will most probably require a new business model (especially if opportunities arise outside your company’s core).

After you fill in the online tool and will send it to us, we will contact you to discuss it and identify ways to initiate the innovation journey together. This will be a free strategy session where our innovation experts will guide you where to start and how to manage innovation in your organization.