New Business Design
New Business Design answers the questions of WHERE and HOW growth can best be achieved. Both answers represent the prerequisite for targeted and realistic business development. Generally, new options are created in this process which the company itself would not develop because it has other perspectives and other experiences, and perhaps also does not have a tried and tested method. In New Business Design, it is therefore advisable to select an external partner who produces objectivity, systematic processes, ideas and experience.
Identify new business fields systematically (Where to grow)
All too often, a “gut feeling” and initial indications which are interpreted positively form the basis for decisions on which the future of a company depends. On this basis, neither the opportunities, nor the risks for a company are sufficiently appreciated.
Business fields can be compared to “playing fields”. They define the basis; the framework and in part also the rules for playing a sport. Business fields delimit WHERE entrepreneurial commitment is of value and is promising for the future. Here experience has shown that a company cannot simply select as many new “playing fields” as they want to, and also that they cannot master every game. Furthermore, the development of new business fields costs money, time and perseverance. A zigzag course may not only put employee motivation at risk, but also the entire company.
Task # 1: Choose your playing field.
A series of questions are related to this task which help to answer the KEY VALUES within the New Business Design process. Here are some examples:
- According to which criteria do we define new business fields?
- How can we assess the opportunities and risks?
- How do we know whether we can achieve success there?
- How do we avoid a trial and error system which does not advance our progress?
- Which prerequisites do we require in order to process this or other business fields?
Task # 2: Define your assets.
Every company has its strengths and weaknesses. In New Business Design, too, the aim is to utilise strengths and to compensate for weaknesses. For this purpose, it is necessary to assess objectively through what or with what new business fields can be developed. Assets in connection with this can be market access or certain sales channels, relevant competencies, successful cooperations, patents or IP, the positioning of the brand and much more.
Task # 3: Create new value.
New business fields develop through new, relevant benefits for defined customer groups. At the same time, the company can utilise new opportunities, develop markets, participate in trends, shape its growth and earn a higher company assessment. Existing business fields are frequently fully exploited and optimised through different phases of activation, improvement and expansion. Therefore, the question of WHERE and WITH WHAT new growth can be developed.
Developing new business models in a targeted manner (How to grow)
After the (new) playing fields have been defined, a further task critical for success is to process these fields successfully. HOW should the right business model be designed? These challenges not only have to faced by start-ups, but also repeatedly by established companies.
The methods of provision of service have changed greatly over the past years, even if the products have remained the same. Some examples: Food from selected restaurants is delivered to your home via App through Lieferando, Lieferheld or Deliveroo. Therefore, existing companies and portfolios can ::: a new or changed business model. Is the business model still the right one; is it future-proof; what can be improved in terms of the provision of services, for example with the aid of new technologies?
What are new business models anyway?
In brief: all forms of a more efficient or effective provision of services and marketing. Example of this are digital platforms such as Amazon, Airbnb or Ebay, which integrate offer and demand using a system. In the meantime, we speak of a platform economy, as 6 of the most valuable companies in the world are digital platforms. But also “subscriber systems” for consumables required in everyday life, or “instant services on demand” and “rent instead of buy” are new business models – in total, we know of almost 100 different business models used worldwide.
When should you consider New Business Design?
- Always, as constant changes demand permanent orientation and adaptations of the business fields and business models
However, this is particularly the case if:
- Changes have a direct influence on your business success
- You are confronted today or tomorrow with new customer requirements
- Existing business fields signalise sustained saturation or stagnation
- Disruptive business models cannibalise your market
- You wish to detect and understand new opportunities more rapidly
- You wish to detect risks early on, in order to
- New technologies promise new benefits and feasibilities