The Kasprzyk family (owners of the Eveline brand), Tomasz Biernacki (owner of Dino stores) and Mr. and Mrs. Kaczmarek (who supply mattresses for Ikea) – do you know what these people have in common? We hasten to answer – they have all developed an innovative business model that has brought them billions of dollars in profits.
The concept of a business model emerged in the late 1950s. In the 1970s. Admittedly, it did not initially receive a scientific definition-it emerged just as the Internet was gaining popularity, and with it opportunities to develop e-business. Over time, more and more innovative concepts have been created to help businesses grow until they reach a ceiling that satisfies the owner of a given company.
What influences the choice of business model?
Specialists in the fields of management and business have recognized that the business model is to ensure that the company maximizes its operating profit. It’s a combination of a strategic concept and an action – an effective one, we should add – that can be individually developed by each organization. Innovative business models are therefore to be created on the basis of sound analysis about the market and potential customers.
When choosing a particular operating strategy, first of all, it is important to pay attention to the values that an organization can offer to its audience/customers. A separate analysis is made of the revenue model to be obtained after the implementation of a given plan (this is about where a given company is to get cash from – in simpler terms, how it wants to make money). The next steps in creating a modern business model are:
– Identify opportunities to enter the market and the competition that is already there – depending on how the niche works, you will need to decide on a course of action that will set your brand apart from the rest;
– Market strategy – determining how to enter the market – this is important from the perspective of long-term operations;
– organizational development – depending on how smoothly it goes, the adjustment of the operating model can be decisive – effectively inhibit or effectively improve the initial assumptions and their potential effects;
– leadership team – given that each company is a conglomeration of individuals working toward a common goal, the business model should be tailored in such a way that everyone can use their full potential to maximize the company’s profits.
By considering the above factors, the final course of action is selected. Creating or choosing a modern business model involves considering the above factors. Without a detailed analysis, it is impossible to choose a working, tailored to a given market and the company’s capabilities, a way to appear and become a competitive enterprise.
Check out detailed information on the offer: IT Consulting
Modern business models – how has the approach changed?
In the 1990s. The concept of a business model has definitely gained popularity. A little later, it was very eagerly used by computer application developers. It has become noticeable how different the operations of each company are. In contrast, the aforementioned concept, which was created in the 1950s, involved mathematical formulas used in a business game.
As companies grow and many of them enter the global market, the evolution of the concept of the modern business model seems obvious. The previous section of the article included factors to be considered in the creation of this important element of organizational development, so it should be assumed that more of them have emerged over time and will certainly continue to evolve just like the value chain itself.
If you are interested in the topic of optimizing your company’s work and processes, please also read the following articles:
B2B business model in the digital age
It seemed that B2B as an innovative business model was the most stable way to operate in the market. However, the timing of the pandemic has shown that one can’t quite agree. The evolution of B2B is encouraging companies previously operating successfully in this model to strengthen the digital ecosystem, for example, using PIM (Product Information Management) class solutions. What has become important is the focal point of the B2C business model – the customer experience.
Online sales cannot be treated as an interesting experiment – in an era of dynamic digital transformation, this is what modern business models should be based on. It is imperative that customers are comfortable with the shopping experience that comes with the B2C business model from the very beginning. Without this, it is difficult to succeed in the 4.0 market.
The most popular B2C business models
In short, the B2C business model involves selling goods or services to individual customers. Within its framework, we distinguish:
– Online auctions – unlike the B2B business model, anyone can participate – the idea is to attract as many buyers as possible with low asking prices for products.
– Retail sales of services – this includes booking hotel rooms, as well as portals like Airbnb or those that allow you to order tickets, training, etc.
– MLM – the so-called. multilevel marketing – A modern business model gaining popularity as e-commerce operations expand. This way makes it possible to earn money not only for the entrepreneurs themselves, but also for their customers, building their sales teams.
– Internet commissaries – especially popular in times of crisis; sale of after-show goods, collection endings, etc. Business customers are also benefiting from this segment – although many products sold this way cannot be warranted, stores operating this way offer invoices, allowing businesses to take tax deductions.
– Electronic stores – it seems that this has not been an innovative business model in recent years, but increasing competition definitely encourages new strategies.
As you can see, the B2C sector is increasingly intertwined with B2B. Combining services for both can help create a modern business model to help a company survive the biggest crisis.
What’s new? Innovative business models
Often, in the creation of a modern business model, most of the work focuses on the product itself, rather than on how to implement it, distribution channels and elements of its presentation.
Hamel said that today, creating an innovative business model is not so much about leveraging competencies as it is about discovering what all companies with the same resources have in common and “connecting the dots” – that is, looking for their commonalities.
The Business Model Canvas, created by Osterwalder and Pigneur, which is currently in use, highlights areas of the business and proposes, based on these, to create a modern business model “tailor-made” for the organization itself and the industry in which it operates. The emphasis there is on owning assets, defining goals, creating relationships and reaching out to potential customers, among other things.
Why introduce an innovative business model?
Management experts emphasize that it is not a matter of just creating a modern business model. The ultimate goal should be to create lasting relationships with partners and customers, evolve the business to maximize profits, and meet the needs of potential customers and clients.
If you want to increase the efficiency of your operations and analyze your business model, we can help. Contact our specialists and take a bold step into the future!