Business Model Design

Business Model Design Stabilization

A company may come under attack due to disruption, industry-wide value shifts, or stalemate competition. In each of these cases, management may need to redesign the business model to defend the business and stabilize the competitive position of the firm.

We assist clients to improve business designs, including relationships between buyers and suppliers, distributors and manufacturers, subcontractors and outsourcers. Our approach examines fundamental assumptions of the business, including the following:

• Emphasis on analyzing the underpinnings of the destabilizing factors, including disruption, flat markets, or stalemate competition
• Focus on examining the value shift in the industry, how and where value is migrating across the value chain
• Identification of new forms of competition originating from outer regions of the industry, including new technologies, new capabilities, and new cost structures
• Questioning fundamental assumptions about how customers are changing, what they value, their priorities
• Examining the profit drivers of the business
• Deciding how to differentiate, which customers to target, what products and services to sell
• Designing the company’s value capture mechanism
• Securing the relevant strategic control points in the industry to build a fortress

Business Model Design Innovation

Companies innovate their business model design to unlock new markets and create blue ocean opportunities for unlimited growth. Examples abound, including Qualcomm, Tetra Pak, Apple, Southwest Airlines, and SpaceX to name a few.

We help clients create business model designs that open new market opportunities and provide a defensible strategic position for massive growth. We use the following guidelines:

• Focus on the changing customer
• Detection of the changing priorities of existing customers
• Tracking new entrants
• Capturing the emergence of new trends that affect the way customers buy and use products
• Expansion of the competitive field of vision to uncover signals about new market opportunities
• Understanding the interaction between the customer base and new business designs
• Deciding on customer selection, including which customers to serve, which ones drive value growth
• Creating the base for differentiation and the firm’s unique value proposition
• Securing the relevant strategic control points in the industry

Business Core Digitization

The objective is to move the company from a physical design to a digital architecture.

Our work entails evaluating leverage-able physical points of the company’s value chain. The analysis confronts the central issue as to how to close the gap between the needs that are physical today to the needs that are digital tomorrow, and develops a design that lays the foundation to satisfy the new customer needs – whether it means digitizing the current business model or devising a new digital business model.

Digital Model Enhancement

The purpose is to improve the business operations by leveraging standard digital assets, including artificial intelligence, robotics, and big data analytics. These assets are information-rich, real-time, always-on, and reduce cost significantly.

We evaluate the strategic merit of the digital asset in gaining competitive advantage, its feasibility, the investment required, and the potential value growth that it brings to the business.