Even though new technologies are in constant creation, technology cannot alone transform a business or an industry. A business model transformation works as the pillar of your company. It helps you generate profits. The structure identifies the market requirements, target needs, and the role of services or products. A business model works in every way, whether starting a venture, expanding new sectors, product launches or planning a new approach to a business model. It can help encourage decisions about opportunities and direction to meet success.
Understanding Business Model Innovation
Business model creativity concerns how a product is brought forward to the market which is better than a process-style vision. Rather than the focus being on an introduction of an improved service the model innovation revolves itself around how the product or service is brought to the market.
So what can a business model do for you?
A business model is a key element that if formulated correctly, can seize value for your stakeholders. This model can be classified into three components.
Manufacturing Costs – The cost it takes to manufacture or design a service or product
Delivery Costs – Here, the costs the business needs to endure with marketing, distribution, processing sales, etc
Payment – The cost that is summed with the above two costs to factor in profitability.
A business Model is designed to aid start-ups, small, and medium-sized companies to gain a foothold in their respective industry sector with a plan to attract investments, grow profits, seek an edge over competitors, and expand the business over a period.
Why invest in business model transformation?
For one thing, the continuous advancement in technology in the digital age acts as the biggest business drive for every company to adopt and survive. Countless big brands and companies were never even heard that failed to embrace or flatly refused to change leading to their spiral downfall and the end of their business.
Business entities need to act promptly and respond to the shift of the changing demands of their customers. As customers would simply walk over to a competitor where they receive more.
Yet enforcing that change is not an easy feat, especially for companies in need of a complete overhaul or for those led by more traditional CEOs who are reluctant to part with old ways of thinking. A transformation doesn’t always require substantial financial input or vast teams and complex processes. The only necessity is innovation.
Stratton Blue aids businesses from closing or falling behind. We analyze to see the current business model and if there is an opportunity for more. If we can offer it is only then that we encourage clients to proceed forward. We thrive to ensure you stay ahead of the pack. If you face a challenge you can always get in touch with us and we can discuss how we can make your business more sustainable.
It is important to remember that a business model transformation does not only mean a financial input, it also means a process change and more importantly a decision to change by stakeholders and the CEO which can be a bottleneck if they are reluctant to transform from conventional ways. The most important necessity here is innovation. We can successfully adopt new business models for a company and help adapt to the ever-evolving business landscape. To know more get in touch at info@strattonblue.com
