Business Model Innovation Consulting
Edgethinker provides specialized Business Consulting Services, including Business Model Innovation Consulting, to empower organizations and unlock their growth potential. With a deep understanding of market dynamics, our expert consultants collaborate with clients to identify innovative opportunities, reshape existing models, and create sustainable competitive advantages. Through a strategic blend of creativity, market insights, and industry expertise, we help businesses navigate the evolving landscape and seize new avenues for success. Experience the transformative power of our comprehensive Business Consulting Services at Edgethinker.
The average lifespan of a business model has decreased from approximately 15 years to less than five years over the past five decades. As a result, business model innovation is now a crucial competency for organizations seeking to drive breakthrough growth, revitalize a lagging core, or protect against industry disruption or decline.
Business model innovation is the art of enhancing competitive advantage and value creation by simultaneously modifying an organization’s value proposition to customers and its underlying operating model in a manner that is mutually supportive.
At the level of the value proposition, these modifications can affect the selection of the target market, the product or service offering, and the revenue model. At the level of the operating model, the focus is on driving profitability, competitive advantage, and value creation through these decisions regarding how to deliver the value proposition.
• Where within the value chain to play
• Which cost model is required to guarantee attractive returns?
• What organizational structure and capabilities are indispensable for success?
Business model innovation is also essential for business transformation. Numerous organizations share a common set of concerns: What type of business model innovation will enable us to achieve breakthrough performance? How can we avoid endangering our core business? How can we develop the capacity to rapidly design, test, and scale new models? In the current strategic environment, inspiring an organization to change is not a simple task, but it is crucial.
Four Approaches to Business Model Innovation
How comprehensive should the initiative be? How much risk is acceptable? Is it a one-time endeavor, or does it necessitate an ongoing capacity?
To answer these questions, it is necessary to acknowledge that not all efforts to innovate business models are identical. Executives can design the path to grow more effectively if they comprehend the four distinct approaches (as per BCG) to business model innovation.
Reinventor Approach
In response to a fundamental industry challenge, such as commoditization or new regulation, where a business model is degrading gradually and growth prospects are uncertain, the reinventor strategy is implemented. In this circumstance, the company must reimagine its customer value proposition and realign its operations in order to deliver the new, superior offering profitably.
Adapter Approach
When the current core business, even if reinvented, is unable to withstand fundamental disruption, the adapter strategy is utilised. Adapters investigate adjacent businesses or markets, and in some cases completely abandon their core business. Adapters must construct an innovation engine that drives experimentation persistently in order to identify a “new core” space with the appropriate business model.
Maverick Approach
The maverick strategy uses business model innovation to expand a potentially more profitable core business. Mavericks, which can be either startups or insurgent established firms, utilize their core advantage to revolutionize their industry and establish new standards. This necessitates the capacity to continuously evolve the competitive edge or advantage of the business in order to drive expansion.
Explorer Approach
The explorer strategy aggressively expands a business’s footprint by exploring or venturing into new or adjacent territories. To be successful in new markets, this strategy necessitates an understanding of the company’s competitive advantage and careful wagering on novel applications of that advantage.
The ET Innovation Journey
Innovation is driven by strategy, it is action-oriented and adaptable. These characteristics apply regardless of whether one is discussing innovation in consumer products, business-to-business, or innovation at the level of the product, service, or business model. And they are at the core of ET’s innovation consulting approach.
ET’s innovation journey is a comprehensive strategy in which we work closely with the client to strengthen its innovation ecosystem and bring about innovation. The approach comprises four central components.
INNOVATION STRATEGY
We begin by examining both the external and internal environments to determine the innovation approach that best complements the entire business plan. Outside to comprehend the Business Model Environment from four essential perspectives: market factors, industry forces, major trends, and macroeconomic pressures, and to rank the most attractive domains for innovation investment.
And within to comprehend the client’s innovation system’s strengths and shortcomings. The plan enables the innovation system to gather momentum by identifying the most crucial investment areas. We do this by using Strategyzer Innovation Software.
Design Sprints
A great innovation strategy is required yet insufficient. In a world where product and business model life cycles are shrinking, creating value needs deliberate action and speed. Using a Design Thinking sprint-based methodology, we build and launch Minimum Viable Products (MVPs) in accordance with the strategy. The most promising MVPs are scaled up to create a new product, service, or business model through experimentation.
Commercialization
Invention and commercialization are the two components of innovation. To get the most out of its innovation investments, a company must be able to swiftly market its most promising MVPs. We assist clients with the journey from testing to implementation of a new product, service, or business model.
Enablement
Innovation is not a one-time activity, it is a continuous journey in successful organizations. Innovation success necessitates the capacity to continuously develop new innovation capabilities or to acquire new skills and talents from outside sources. We assist firms in identifying their essential competencies required and facilitate building them internally through structured interventions.
Want to learn more about how we can help you in Business Model Innovation ? Contact us today. We’d love to hear from you.