Disrupt your own business model
Entrepreneurs are concerned about whether their business will still be relevant and competitive in two years. Rightly so. Because disruptive companies such as Netflix, Blendle, Uber, Spotify, Airbnb, HelloFresh and Zalando are turning the revenue model of entire sectors upside down. Even the most established parties such as the Telegraaf Media Groep and the Hema suffer from it. Other companies, such as V&D and the Free Record Shop, have already been overtaken.
Is your company susceptible to disruption?
Every sector will sooner or later, and to a greater or lesser extent, be confronted with disruption. But most companies have no idea where new threats come from. And it soon goes wrong. That is why we have drawn up four factors that allow you to recognize whether your business is susceptible to disruption.
1. Inefficiency and waste
The greater the inefficiency in an industry, the greater the chance of disruptive solutions. Does your business have a lot of overcapacity and waste? Then that offers opportunities to do this more efficiently, cheaper and more customer-friendly. Think of time-consuming processes, vacant rooms or containers, machines that are stationary and trucks that drive without a load.
The same applies to inconvenience: the greater the inconvenience, the greater the chance that a smart entrepreneur will jump into that gap in the market. If you can ensure that customers have less effort to fulfill their needs, then you are the buyer. Companies such as Carglass and Picnic have cleverly responded to this. They come to you to bring your groceries and to repair your car window. This saves the customer a lot of time.3
Services packed in handy packages or bundles. Companies like it. After all, it is a way to generate cross-sell. A TV subscription? Add the internet and telephony immediately and you pay only once. Very handy. But do consumers really enjoy bundling? These days, we want to determine for ourselves where we purchase which service. So we again opt for separate services such as “sim only” more often. Or we buy an article on Blendle instead of an entire newspaper. We want to get rid of the all-in-one and back to the one-is-all.
4. Lack of transparency
Sectors that are unclear about the price/quality ratio and the reliability of their services require companies that provide clarity. Nowadays, consumers want to know exactly what they are getting and whether that is a good value for money. The latter is confirmed by the reviews of other customers. Companies that have successfully responded to the transparency of their competitors are Booking.com and Knab.
Disrupt or be disrupted
Does your company meet one or more of these factors? Then it’s time for action! A new player can arise at any time, inside or outside your industry, with an innovative business model that makes your product or service completely unnecessary. You should, therefore, take matters into your own hands. As innovation guru Clayton Christensen says: “You better make yourself redundant before someone else does that for you.”
This is how you create a disruptive business model
That all sounds nice, I hear you thinking, but where do I start? We explain that to you step by step.
1. Select fresh cans
You don’t have to do it alone. In fact, we recommend that you involve some employees in this process. Preferably of course from different layers of the organization. Do not opt for the established people, but for (new) employees with a fresh perspective.
2. Identify your chances
You have now seen the areas in which you are susceptible to disruption. There are already opportunities for improvement. Together with your team of fresh eyes, look especially at what is going well. Why does this fit so well with the needs of the customer? And is the business model still right for future customers? But also ask critical questions such as: what happens if we outsource three-quarters of our activities? Then you really discover where there is still untapped value and you broaden your view to other target groups.
3. Take the role of your customer
Is the customer still waiting for what you offer? Does it (still) connect to their pain points? There is only one way to find out: by talking to (former) customers, listening carefully and observing.
4. Discover and do
You will experiment based on the above results. Research shows that business models often have to be adjusted four times before they work. So don’t be afraid to make mistakes, but learn from it and make adjustments.
Do you want to get started with innovating your business model and can you use some help? Then contact us via firstname.lastname@example.org