New business design –
New Business Design is the answer for successful business and corporate development. Business development covers new business fields, new business models as well as the development of ecosystems and platforms. It is often based on new customer needs or unsolved problems as well as foreseeable future needs and new technological possibilities. In a systematic approach new options are developed and assessed that a company itself would not develop because it has a different perspective, different experiences and perhaps does not yet have sufficient methodological knowledge. KEY VALUES provides objectivity, system, analyses and concrete business ideas.
Systematic identification of new business fields (WHERE to grow)
All too often a “gut feeling” and positively interpreted initial indications form the base for decisions the future of the company depends on. On this basis neither chances nor risks for the company are sufficiently acknowledged.
Business fields are like “playing fields“. They define the base, the frame and the rules of a sport. Defined business fields help assessing WHERE entrepreneurial commitment is of value and promising for the future. Experience shows that a company cannot simply choose any number of new “playing fields” just as they cannot master every game. Moreover, moving into new business fields costs money, time and perseverance. Taking a zig zag course in this matter might not only put the employee motivation at risk but also the entire company.
Task # 1: Choose your playing field.
A series of questions is connected to this task. KEY VALUES helps answer them during the New Business Design process. Here are some examples:
- According to which criteria do we define new business fields?
- How can we assess the chances and risks?
- How do we know whether we can play a part in that area?
- How do we avoid a trial and error system that will not advance our progress?
- Which requirements do we need to fulfill to work certain business fields?
Task # 2: Define your assets.
Every company has its strengths and weaknesses. In New Business Design, too, the aim is to utilise the strengths and compensate the weaknesses. To do so it is necessary to be able to objectively assess how and in what way new business fields can be developed. In this regard assets can be access to the market or certain distribution channels, relevant competencies, successful cooperation, patents or IP, the positioning of the brand and much more.
Task # 3: Create new value.
New business fields develop through new relevant benefit for defined customer groups. Existing business fields are usually fully exploited through different phases of activation, improvement and expansion.
Targeted development of new business fields (HOW to grow)
When the (new) playing fields are defined the next task critical for success is to work the field successfully. HOW should the right business model be designed? Not only start-ups have to face this challenge, established companies repeatedly do as well.
The methods of providing services have changed greatly in recent years, even if the products stayed the same. An example: Food from selected restaurants is delivered home through apps such as Lieferando, Lieferheld and Deliveroo. Therefore, existing companies, too, should reassess their portfolio and potentially develop a new or changed business model.
Is the business model still the right one, is it sustainable, how can the service provision be improved – for example with the help of new technology?
What are new business models anyway?
In brief: all forms of more efficient and effective service provision and marketing. Examples are digital platforms such as Amazon, Airbnb or Ebay that integrate supply and demand through a system. By now we are already talking about a platform economy since 6 of the most valuable companies in the world are digital platforms. But “subscription systems” for everyday goods, “instant services on demand” and “rent instead of buy” are also new business models – in total we know close to 100 different business models used worldwide.
When should you consider New Business Design?
Business development is an ongoing process. However, it becomes critical to success when changes require new orientation and adaptation of business fields and business models. This might be the case when…
- changes directly impact your business success
- you are confronted with new customer demands today or tomorrow
- existing business fields signal sustainable saturation or stagnation
- disruptive business models cannibalise your market
- you wish to detect and understand new chances faster
- you wish to detect risks in time to be properly prepared
- new technologies promise new benefits and feasibilities