How to Create a More Innovative and Effective Business Model
Rethink modifications to your operating model and the value it offers to customers.
As your company proceeds from the startup stage, the model often changes due to new opportunities, new competitive threats or simply because the company learns more about what your customers truly need.
Stay on top of how your business and your competitors create, deliver and capture value.
1: Value Proposition Innovation. Make sure your value proposition is simple
2: Pricing Innovation
3: Customer Acquisition Innovation
4: User Experience Innovation
5: Profit Model Innovation
6: Channel Innovation
Look for impnroved alignment:
Aligned: creating internal and external consistency
Align internally to provide customer value
Align externally with partners through “open” business models
Use existing assets and capabilities
How to think through new business models and choose the one for you
1. Take Advantage Of Major Trends
Markets are always changing — but sometimes, major trends affect all the markets. A prime example of this is the “sharing economy” - a term that refers to the new widespread inclination towards sharing vehicles (Uber), workspace (WeWork), and homes (AirBNB). Many new businesses hopped onto this trend with new business models.
2. Know what business you're really in. “If you’re going on and off focus on your brand and shifting away from your model to be all things to all people, you’re going to fail.” She makes sure her business never strays from what it does best: micro-weddings - which means they say no to traditional weddings. This pronounced clarity helps their overall brand.
3. Understand your customer and what 'drives' them. Be sure to take advantage of research already out there about your target customer. Consider hiring a third party to conduct private, one on one interviews with current and past customers. This can provide huge and often surprising insights.
4. Donate to the underserved through your customer. Use your linkage with that group to differentiate your operation. “We know from research that people are most motivated to help when they feel a connection to those whom they’re helping.” What are some ways that you can donate your service or a unit of your product? Not only is it an admirable action to commit to from a philanthropic standpoint, but it can also help your customer understand the benefit of your product and service.