Disruption. Pivot. Business model innovation. People bandy these terms around without really knowing how to use them effectively.
Sustained growth means exploiting your current business model while exploring new models that will meet future needs. Unfortunately, many businesses can become so entrenched in existing practices they can’t engage in the new thinking required for business model innovation. And that puts their future at risk.
A business model is a description of how a business generates its profits. It involves critical decisions relating to a business’ value proposition, activity system and resource base. Together, these decisions determine the particular business model and result in a unique profit algorithm.
Business model innovation improves the profit algorithm by reinventing your existing value proposition, activity system, resource base or establishing entirely new ones. Effective business model innovation is critical to managing the need to generate today’s profits by exploiting the current business model while also exploring new business models essential to future profitability.
You don’t need deep scientific knowledge or difficult-to-access resources to create an innovative business model. Use your speed, agility and customer intimacy to take full advantage of your existing business model while exploring future business models that let you pivot or disrupt your industry.
Fortitude can help put you on the road to success. Our team has an extensive track record of assisting owner-operated businesses in exploring business model innovation pathways, playing to their strengths, and making the most of their innovation opportunities.
Book a free 30-minute innovation consultation now on 1300 551 040 or email us for more information.