How to Reinvent Your Business Model to Harness Innovation

Reinventing your business is the only way forward. It provides an operational framework for how you operate and refracts the common misconceptions of what a business model actually is not. Successful incumbent’s face unique challenges within their organization as the inherent capabilities that make them successful differently inhibit innovation and exploration. If you’re going to succeed, you have to redefine your company which may result in you considering enterprise architecture solutions as part of your plan to reinvent your business. .

The old paradigms have failed because they’ve been outdated for over 30 years. In industry X.0, innovation is considered disruptive. Industry X.0 companies are focused on providing customers with products and services that are different from competitors. They believe that the old paradigm’s notion of incremental innovation is no longer relevant. Companies in industry X.0 are able to adopt creative risk management techniques that foster innovation internally as well as externally through investments in the r&d.

Companies that adopt the new business models will face fewer barriers to entry. This ultimately leads to better profit margins and more market share. Because companies have instant access to market capital, they can become nimble and responsive. Being able to respond quickly and effectively to competitive threats creates new opportunities to grow and invest in new business models. If you want to reinvent your business, start with a clear strategy and plan.

For example, a new opportunity might be to provide complete, connected products and services to customers in multiple locations at the same time. Companies like this leverage technological advances to create new opportunities. Companies like this include makers of industrial equipment, like CNC machines, robotic welding machines, air conditioning systems and industrial lubricants.

You might also want to reinvent your business model to seize new opportunities in new industries. For example, companies that provide cloud computing are poised to reinvent themselves. These companies provide software applications that enable people to access information from any internet connected place at any time. Businesses may wish to work with a platform like FastSpring (https://fastspring.com/solutions/selling-software-online/) to enable them to sell their software globally so that they can reach as many people as possible and establish themselves as a recognised name. By providing software applications, companies like Amazon, Sun and others are able to seize markets currently occupied by established players, but that doesn’t mean that there isn’t room for others too.

The three business models I just mentioned are just three of the many business models out there that provide opportunities for reinvention. In addition to connecting people in new ways, these innovative companies can also help you keep up with the competition. Using technology to innovate your business models is a sure way to keep your company ahead of the competition. If you’re looking for an experienced mentor to help you begin to reinvent your business models, contact Mark W. Johnson.

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