When Apple introduced the iPod, it did something far smarter than wrap a good technology in a snazzy design. It wrapped a good technology in a great business model. Combining hardware, software, and service, the model provided game changing convenience for consumers and record-breaking profits for Apple. Great business models can reshape industries and drive spectacular growth.Yet many companies find business-model innovation difficult. Managers don’t understand their existing model well enough to know when it needs changing—or how.
To determine whether your firm should alter its business model you can take these steps:
1. Articulate what makes your existing model successful. For example, what customer problem does it solve? How does it make money for your firm?
2. Watch for signals that your model needs changing, such as tough new competitors on the horizon.
3. Decide whether reinventing your model is worth the effort. The answer’s yes only if the new model changes the industry or market.
To find answers to these questions and other fascinating info on business models, the International Business Development Alliance recommends you to attend webinars given by our partner the Innovation Intelligence Group. For schedule and further info please see: http://www.iigglobal.com/training.html.