Today’s business environment is more competitive than ever it’s not just about understanding your customer pains, gains and jobs to be done. You need to think about the whole customer journey, and how your business supports them at every step of the way. Complexity is the killer of speed and agility, and because customers increasingly want easy to use smart product owners are leveraging these two factors for success. In addition, many businesses are moving beyond simple functional value. (easy to use, save’s time, simplifies, reduces risk, avoids hassles, quality, informs etc.) towards emotional value (reduces anxiety, fun and entertainment, Attractiveness, rewards me etc.)
Here is a real-world example, Uber helps to reduce anxiety by showing you the car making its way to you, and by giving you an estimated time of arrival. Also, they reward you and the driver with gamification badges from the two-way feedback loops – all based on creating a sticky engine of growth and emotional value. Compare this to the “good old days,” where you would order a cab and maybe call back a little later, just to make sure it was still on route.
So, business model transformation is about more than just how you make money today and in the future, it’s about considering external market factors, your core competencies, what your customers want and expect and how you can deliver all these pieces in a joined way. One of the biggest success stories of recent years is Nespresso, but it was not just the capsules that made them a success it was the business model that put them into a winning position.
The business model canvass (BMC) sprang from the book – Business Model Generation it’s a fantastic and under-utilised tool (well adopted in the startup community) its got great value for established business or products trying to reinvent or change their business model. Business models can be created quickly and iterated on and can include the financial features to help you model different scenarios rapidly. If you’re not familiar with the BMC, we can help you get up to speed and facilitate workshops with your Stakeholders to help address the business model challenges you face today.