Actively change the game
Business model innovation is one of the most effective options for a company to make it stand out from others, and therefore secure revenue sources in the future. This involves setting up a strategy of being consistently and determinately different to all other players in the field.
The current environment offers more opportunities for business model innovation than ever before. One merely has to consider the numerous technological innovations, such as fast search engines, high-performance databases, etc., or the merging of various industries and sectors, such as telecommunications and IT, for example. Some examples of business model innovation are:
- By passing transport and assembly on to the customer, IKEA has reduced costs and can therefore offer comparably cheaper furniture
- Hilti AG is considering selling boreholes instead of drills, whereby the machine would no longer be sold to the customer. It would be charged according to use and maintenance.
- Heidelberger Druck no longer only sells its machines. It now also sells the extensive use of its "Printing" customer process.
With a business model innovation, the objective is to break your business up into its individual components, re-think it, and specifically and systematically put it back together in combination with other, new components. The use of proven procedures, a wide-ranging pool of the most diverse methods, and an intensive integration of your key players and the use of their area-specific competencies are indispensable in this respect.