Evolving customer behaviors, needs and expectations, fast-paced technology advances, shifting regulations and globalization are threatening incumbent business models, while opening prospects for insightful players.
Business model innovation is essential for strategic renewal in order to seize opportunities, change course, revitalize a declining activity, or overcome an industry’s disruption.
Above and beyond product and process innovations, business model innovation can create more lasting competitive advantages and the most significant long-term value. Serve new customer segments and craft new solutions and value propositions. Shape how to create and deliver them. Design how to fully extract their financial and non-financial value in your ecosystem.
The basis of competition has changed. It is not anymore between companies nor their supply chains, but among interconnected actors in value networks.
Leaders play a key role in their environment through the value they provide and orchestrate. They establish a dynamic network of exchanges where participants co-produce value and rely on each other for success.
Redefine your value network to raise your power, improve your relevancy, expand your influence, and increase your leverage in your business environment. Develop a thorough understanding of the whole dynamics of exchanges. Redefine the role and exchanges between actors to maximize value creation, delivery, and capture. Find opportunities to convert both tangible and intangible assets into new negotiable forms of value.
Real-world situations are often complex, non-linear systems, with interdependent factors and delayed consequences that can lead to unexpected and unintended developments.
Modeling the dynamics brings a comprehensive and thorough understanding of the logic at work. It enables to find solutions that would not have been found otherwise. Their effectiveness without counterproductivity, in the short and long term, can be confirmed.
Model the underlying market and operational dynamics to shed new light on complex issues. Uncover solutions that fully address the issue and assess beforehand their real viability. Avoid side effects undesired and unexpected by considering all influencing factors, cascading effects, and deferred impacts over time. Make relevant strategic choices and find appropriate solutions by ensuring the solution will work as intended and will deliver expected results.
Competitors will always strive to copy your innovations, best practices and positioning. Excellence in these elements is not sufficient and can be matched. Sooner or later, they will do the same, so that these will only confer you at best a temporary advantage, but not a lasting one.
Compete on the whole not the parts to establish an effective and lasting differentiation, but also one hard to reproduce by competitors.
Design the contributions, synergies, and trade-offs in your business model between customer segments, value propositions, capabilities, and enablers. This unique weaving, with a strong fit and a delicate balance is difficult to understand from the outside by competitors as well as time consuming and costly to replicate by them. It will generate a lasting differentiation as well as a high barrier to imitation.