Is it time to service review the business model?
Make sure that your business model is as sharp as business model as possible by keeping it up-to-date and relevant. "We are living in very changeable times, and a regular review of business models is perhaps more important than ever," says Jonas Norrman, business model expert and Change Manager at IMCG, says.
To strengthen the business in the long-term, it is important to have the right maintenance process for the business model. IMCG's Jonas Norrman, business model expert and Change Manager at IMCG, recommends reviewing it twice a year.
"We are living in very changeable times, and the regular review of business models is perhaps more important than ever," Jonas Norrman, business model expert and Change Manager at IMCG, says.
IMCG has conducted reviews of corporate business models for many years. Usually, the focus has been, with a particular focus on sectors where new solutions (innovations) are changing the way services are performed or what customers want. Once the framework for the review is in place, it can form the basis for regular business model analysis, and, if IMCG's model is followed, the company can ensure that it changes in step with the world around it.
Review in four steps
IMCG's model for review is implemented in four steps to ensure it is pedagogical and educational and as well as it ensures that the right people participate and contribute to the business development. The quality of the review is very dependent on the company's understanding (and acceptance) of the new business model, which in turn is dependent on the involvement and input in the process. Thus, the quality level is determined to a great part by the company itself, by letting the right people actively participate in the activities. The review method consists of the following activities:
Right people. For each activity, those persons e people are needed who have the responsibility for key performance indicators, responsibility for investments, responsibility for organisation, responsibility for purchasing as well as implementing the business development model. These individuals will be involved in different parts of the method.
Competitive intelligence. For each key performance indicator in the activity, a competitive intelligence question is drawn up. This question is used to compile information about what is happening externally, in the arena (sector) and internally (in the Group). This can be performed by the company's own employees or with support from IMCG.
Business model analysis. Based on the answers from the competitive intelligence, a workshop is held with the right people in order to identify the additional work needed for the competitive development of the business model. This could be downstream, with new value offers and customer segments; or it could be upstream, with new technologies and new partners. The new proposals are presented in a second workshop together with the current business model and, in this workshop, the decision is made on the parts of the current model that will be phased out and replaced by the new proposals.
Business model development. Based on the business model analysis, a new workshop is held with the right people to develop a plan for a joint business development project. IMCG has developed a special method for this, called the Innovation Arrow, which can also be used to develop a plan for investments.
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