Friday, October 11, 2019

Develop Breakthrough Business Models by Trending Emerging Technology

Innovation leaders are the digital adventurists who can practice bold leadership for capturing business opportunities, foster breakthrough innovations, cultivate business model innovation as a living thing,

When we jump into the digital future of “VUCA” new normal –volatility, uncertainty, complexity, and ambiguity, organizational leaders should be able to envision and determine what the future needs to look like, what the transformation must look like? Can information technology help to design new business models? Is the business model scaling the right way to achieve the strategic objectives? And how to take the wise steps for evolving the emerging digital information technology to develop breakthrough business model and innovation?

Predicting where the future will be for the business model design: Emerging digital technologies bring significant opportunities to reinvent business models and create a new revenue stream. You must be aware of the new technology before you can learn how to apply it to the business. Information technology changes so fast, trending emerging technology is a critical skill for modern digital leaders so that they can see things further and perceive "the art of possible" for developing new business models or reinventing existing business models.

However, business model is neither equal to strategy nor technology only, It is a description of the way in which an enterprise intends to leverage the emerging technologies or uprising trends to make money. At a conceptual level, a business model includes all aspects of a company’s approach to develop a profitable offering and deliver it to its target customers.

Identify core business competencies and critical capabilities: The business model generates predictions for how to create revenue or make profit. Digital organizations are unique living systems which demonstrate their own strengths and weaknesses. Organizational leaders can establish important business goals relevant to the capability and identify core organizational competencies for business model reinvention.

The business model designers should methodologically review a list of levers for business model components, and systematically generate the list of potential business model options, and then, make good choices based on their own business core competencies in order to maximize the business value from long term perspective. Technically, there are mapping relationships between the business model and capability model, between capability model and process model. Business model development or reinvention needs to be based on the core business competency of the organization for either providing value-added products/services/solutions to current customers or exploring the new customer need continually.

The information or metrics supporting the business model innovation story need to be reliable: Like all sorts of innovations, business model innovation is a process which can be managed, and you can only manage what you measure. It's common knowledge that innovation requires the highest risk-taking at a strategic value chain, including investment and asset management. Breakthrough innovation is often risky and costly, thus, better look at what the results were prior to implementing the innovation and after. 

 When the organization experiments with the new business model or develops the new business entity that creates the revenue stream, the challenging part is that you must be careful of what cost optimization/restructuring/performance measures need to be considered while trying to model a particular business growth scenario. In practice, often the emerging businesses usually lack hard data. It is difficult to measure the impact without taking the time to generate impacts. Therefore, it’s always critical to select some leading KPIs for measuring innovation results in the long run.

The available digital technology just makes innovation easier to do now than in the past, less costly and more easily accessible. Innovation leaders are the digital adventurists who can practice bold leadership for capturing business opportunities, foster breakthrough innovations, cultivate business model innovation as a living thing, focus on the strategic business goals and navigate the path of business transformation skillfully.


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