Business Model Design

Capture value in a shifting industry

Effective business model design captures value and protects companies that become vulnerable to displacement or disruption. Of the Fortune 500 in 1955, only 12% remain thanks to the creative destruction that fuels economic prosperity. The rest have gone, merged or contracted. Forward-looking statistics suggest that only one company in 10 will hold its position in the next ten years. While this condition speaks positively about a vibrant economy, it also raises serious questions about the long-term sustainability of profits for most companies.

Our approach to business model design (BMD) delivers the fact base and objective validation required for companies to make confident strategic decisions and get ahead of the curve.

The Results You Can Expect

  • Clarity of competitive and industry value shifts
  • Assessment of attractive market opportunities
  • Identification of the relevant strategic control points
  • Design of an effective business model
  • Quantification of impact

How We Help

We help clients redesign their business model to capture value shifts in their industry.

Modified Business
Model Design

Innovate BMD to break through stalemate competition

Breakthrough Business
Model Design

Innovate BMD to redefine the industry

Improved Business
Model Design

Redesign the business model to overcome disruption

Adjusted Business
Model Design

Innovate BDM to capture new markets

We provide a comprehensive set of BDM services to meet our client’s needs and objectives.

Icon for Business Model Design Stabilization

Business Model Design Stabilization

We help stabilize companies whose business model has come under severe competitive attack, including disruption, industry-wide value shifts, or stalemate competition. We help redesign the business model ...

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
Icon for Business Model Design Innovation

Business Model Design Innovation

We help clients create business model designs that unlock new market opportunities and provide a defensible strategic position for massive growth ...

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
Icon for Business Core Digitization

Business Core Digitization

We assist clients that need to move their company from a physical design to a digital architecture to meet the requirements of the digital economy ...

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.

Icon for Digital Model Enhancement

Digital Model Enhancement

We help clients improve their company’s business operations by leveraging digital assets, including artificial intelligence, robotics, big data analytics ...

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.