Reinventing businesses digitally: 3 core themes to live by
While reinventing businesses digitally could potentially be a costly and time-consuming task, as discussed in our article, Why Business Model Reinvention is necessary, it can also prove to be rewarding on a number of different levels. But how does one go about reinventing their business model? In this post, we will discuss HOW a business model can be reinvented using 3 core themes.
Reinventing Businesses Digitally is possible with 3 core themes: own, create, execute.
• Own – Your history.
Revisit everything in your business which has added value and is core to your current revenue streams. If you want to reinvent your business, you need to have the courage to upend old assumptions. You did many things right in the past. Some of the things that you did right in the past will be relevant in your digital future. But the trick is to know intuitively what to own and what to discard.
In his article, The art of reinventing your business, Gregory Pollack suggests that to grow your business and expand, you always need to be creating and building on what you have already achieved. We wholeheartedly agree. There is equity in what you have already created. He goes on to say that to reinvent your business, you need to re-examine how you started in the first place. What was the climate like? What was your purpose for being? And most importantly, what was your positioning? From there you can see the need for change. You can also see the importance of creating a visionary plan for renewed growth.
• Create – and use your network.
Reconnect with old contacts that you have accumulated over the years. Whether they’re business partners, competitors or even clients, revisit the way you view them in relation to your business. Ecosystems and value chains are morphing all the time. A competitor of yesteryear could potentially become a partner in the new economy.
Examine the feelings and opinions that your customers have about your business. You need to understand why they buy your product or use your service. What motivates them to buy? What is important to them and how does your product or service fit in their life?
Develop a digital customer profile. What are your customer’s habits? Where do they shop, when do they shop, what do they look like and how does your product or service make sense to them? Bring together what you know about the history of the market when your business started, as well as the current state of your market in the digital world. This will assist you in creating a plan to reinvent your business.
• Execute – Unfortunately, the best plans will fail if there is no cohesive execution.
It takes a great deal of courage to stop and view everything differently. This often takes more courage than the action of executing change. The maxim of ‘why fix something if it isn’t broken’ is no longer relevant in the digital world. Have a clear vision of where you want your business to be. Know who your real competitors are and why. Disintermediation is real and we see this across industries.
Digital allows, in most cases, for the middle man to be cut out of the value chain. Does this affect you? If so, ensure that you’ve considered this in your execution plans.
John Maynard Keynes says: “The difficulty lies not in the new ideas…but in escaping from the old ones”.
For execution to succeed, the ability to change behavior across the business to embrace a potentially new digital business model will be very important. This is easier said than done. Old habits are hard to break. Thus, a simple, easy to understand execution plan is key to assist the broader business to embrace reinvention in the digital world.
The bottom line
of digital reinvention for a business
Key to understand, is what you “own”. How can you create what you “own” in the digital world? Ensure that you have a simple execution plan to make digital reinvention happen.
Contact us to assess where your business can be found on the digital maturity curve and let’s explore your journey together.
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