TechTalk Blog - Successful Technology Implementation through Transformative Business Models
Seems like the pace of innovation is accelerating (perhaps we always think so). I mention a topic from the current issue of Harvard Business Review - it highlights successful innovation by companies which tie their business models through six features and technology to emerging needs. Just adopting new tech is not enough. The six attributes of successful business models are:
- Personalization (customizing for diverse consumer preferences)
- Closed loop systems (as in recycling some of the components in a product, shifting resource costs)
- Asset sharing (as in Uber drivers using their cars, not a company fleet)
- Usage-based pricing (akin to Microsoft software subscriptions)
- Collaborative ecosystem (supply chain partners, allocating risks appropriately, reducing costs)
- Agile and adaptive - greater customer value at less cost by using new decision-making models, reflecting market needs, real time adaptation.
There's a real interesting graphic that uses these keys to innovative success as a way of connecting five Tech Trends and four Market Needs.
These are:
- Sensing, interfacing (Internet of Things)
- Optimization (AI, big data, robotics)
- Platforms for connecting devices
- Mobility & cloud
- Decentralized small-scale manufacturing (3-D)
The market needs:
- Increase in demand for products/services
- More diversity in consumer preferences
- Rise of input costs (resource, labor, transportation)
- Greater regulatory pressure
This article also ranks 40 companies on the existence of the 6 keys to innovative success (#1 with 5 is Uber, Airbnb has 4 of 6).
Food for thought.
“The Transformative Business Model,” S. Kavadias, K. Ladas, C. Loch, Harvard Business Review, Oct 2016, 91-98