Business Model Innovation
Although business plans are important as they provide an outlook for the future of a business, a business model provides clarity on different aspects of the way a business operates and promotes products to the correct customers.
At agileering, we believe on focusing less on plans and more on models to understand what element a business need to focus on to make the day to day running fo the business more successful and meet customer needs and desires.
Scroll below to find out more about what makes a business model and how it can be applied.
What is a business model?
Your business model describes how you create, deliver, and capture value. Put more simply, it is what translates your efforts into cash.
Optimising your business model by tweaking one of the elements shown here leads to more cash for the same effort. That is why we love it.
Case Study 1: Capture more cash from creative customer offers
This flight training company turns out highly respected pilots. Changing their offer from providing a pilot’s license to gaining that first seat in the cockpit created a whole new revenue stream.
Working with airlines they offered a full aircrew recruiting service, replacing expensive head hunters as recruiting partner of choice for several airlines.
Trainee pilots were delighted by a near guaranteed job. Airlines loved a pipeline of on-demand pilots trained to their exact specification while saving on the cost of poaching pilots from other airlines.
What can we take from this?:
Thinking about what your customers are trying to achieve rather just what they are buying opens up exciting new opportunities. This way you can capture a lot more of the value that your expertise creates.
Case Study 2: Make better use of resources by working smarter
This B2C Glass installer needed more space but did not want to move. How could they resolve this conundrum?
The answer was to change their channel to market. Instead of selling direct to consumers, they switched to Facilities Management Companies. Installers could work from vans at the client premises while the bigger job sizes reduced cost of sale, idle time between jobs and delivery time.
For the cost of ISO9001 and some phone calls, the company doubled its profits in the space of a year - and stayed put!
What can we take from this?:
Reframing a problem from how can we get more space to how can we need less, offered up interesting new opportunities. In this case by delivering value in a different way they created a whole lot more,
What do you notice about both of these?:
In both cases, the product or the main activities carried out by the business hardly changed. What did change was the way they delivered them. Can you see how business model innovation can make a big difference with relatively little investment. If you are creating the value don't you deserve to keep more of it?
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Who are we?
Agileering Ltd is an Innovation and Leadership coach and training provider covering the Thames Valley. It is registered at Companies House no 8688090