Since the start of the pandemic, I have been advocating the need for business owners to look at how they operate. Review their business model.
For those that have, we have seen sustainability and significant growth. Even multi-million-pound growth. For those that have not, a steady decline and in many an instance, death.
The need to review your business model isn’t something new. In fact, the fastest growing and most successful organisations in the world constantly review and renew their business model. They innovate and those that don’t, simply die.
Just look at the likes of Kodak, Blockbusters, Toys R Us and Compaq. All multi-national organisations that failed to consider the changing environment and consumer behaviour.
But what is a business model? Why and how do you review it? I respect that this may sound like me teaching you how to suck eggs – although I have never sucked an egg, nor would I have a clue on how or even why you would do so – but a business model is how your organisation operates.
A business model defines who your customers are, what you are selling, how you produce your offering, and why your business is profitable. Who-what-how-why describes a business model of which the first – who and what – address its external aspects, and the second two – how and why – address its internal dimensions.
Creating, capturing and delivering value, ultimately your business model should be 1) desirable – people want to buy what you have to offer. 2) feasible – you should be able to deliver your product or service. 3) viable – you should be able to sustain your business and generate profit.
Simply put, a business model, and consequently a business, fails when the value is no longer being created, captured or delivered. And the Pandemic has accelerated the need for businesses to review their business model, especially when there are so many environmental factors that should be causing concern. Including inflation, supply chain, labour shortages, digital transformation, change in consumer habits and so much more.
So how do you innovate your business model rather than just your product or service? Having spent the last 30 years innovating with some of the best minds in the world, alongside tracking the most innovative companies, and methodologies, we have created the Power of 3 approach, which focuses on developing personal, professional and organisational capacity and capability. Exploring and renewing at least two of the who-what-why-how aspects of the business and innovating the whole value proposition – Desirability, Feasibility and Viability, the programme concentrates on the three biggest influencers to growth – Skillset, Mindset and Toolset.
Using Design Thinking methodology and years of experience developing and delivering Accelerator, Scale-up, Start-up, Investor Readiness and Business Model Innovation programmes to hundreds of organisations, we now have the secret formula to organisational success. And we have accredited the programme as a level 6 qualification to provide a quality standard.
So, what does this all mean. Well, like one of my child-hood heroes the Six Million Dollar Man. We have the capability. We have the technology. We have the expertise to innovate and create bionic business models. We can create better, faster and stronger businesses. And we all know that good things come to those that create. Ammar Mirza CBE is Chair & Founder of Asian Business Connexions, Chair of the NELEP Business Growth Board, Chair of the IoD North East (North) and holds various positions across the public and private sectors.