Unlocking Potential: Our Best Business Model Reinvention Approaches

Business Model Reinvention Approaches

PwC’s Framework for Value Creation

PwC’s got this nifty framework that helps businesses shake things up and grow by working hand-in-hand with leaders to rethink how they do their thing. It’s all about mixing human smarts with tech magic to help companies roll with the punches and come out on top. PwC’s all about sparking fresh ideas and making big changes so businesses can tackle tough problems and grab new chances (PwC).

Successful Business Model Transformations

Some companies have totally nailed the art of reinventing themselves, showing just how game-changing a smart strategy can be. Check out these cool stories:

• Amazon: Started out in ’95 selling books online, but Amazon didn’t stop there. By 2000, they opened the Marketplace for other sellers, and in 2006, they jumped into cloud computing. Now, they’re a big deal in both online shopping and cloud services (U.S. Chamber of Commerce).

• American Express: Once upon a time, they were all about mail and transport. But in the mid-1900s, they switched gears to offer a charge card, giving folks and businesses a way to borrow money. Fast forward to 2022, and there are over 133 million Amex cards out there.

• Chipotle: In 2020, Chipotle went big on drive-thru lanes, calling them “Chipotlanes.” This move paid off, with plans for 250 new spots and 7,000 jobs in 2023, and even more locations in 2024 (U.S. Chamber of Commerce).

• Corning: Known for making glass, Corning switched things up by creating Pyrex cookware, optical fiber for the internet, and Gorilla Glass for gadgets like iPhones and Apple Watches. These moves have kept them at the cutting edge of glass tech.

• IBM: Back in the ’90s, IBM was struggling with competition. They pivoted from hardware to software, IT consulting, and research. After a rough $8 billion loss in ’93, they turned things around and are now worth over $87 billion in 2023.

These stories show how shaking up your business model can lead to big wins. Want to learn more about staying strong in tough times? Check out our pieces on crisis-proof business models and business model transformation strategies.

Key Challenges in Implementing New Models

Rolling out fresh business models can feel like trying to teach an old dog new tricks, especially when the chips are down. We get it—it’s a tough gig with plenty of bumps along the way. Let’s chat about two biggies: folks resisting change and the headache of old-school systems.

Resistance to Change

Change can be a tough pill to swallow. When new business models come knocking, employees and stakeholders might get a bit jittery, clinging to the familiar like a security blanket. Forbes says leaders should treat change like a slow-cooked stew—patience, empathy, and good communication are key ingredients.

Here’s how to tackle the change grumps:

• Keep Talking: Regular updates and open chats build trust and ease the jitters.
• Get Everyone Involved: Let folks have a say in the process. It makes them feel like they’re part of the team, not just along for the ride.
• Train and Support: Give them the tools and backup they need to feel confident in their new roles.
• Lead the Charge: Show them how it’s done. Be the change you want to see.
• Celebrate the Little Wins: A pat on the back for early successes can lift spirits and keep the momentum going.

Managing Legacy Systems

Old tech can be like a ball and chain, dragging down new business models. Vorecol found that 83% of IT leaders say these relics cost them about 11% in revenue every year. Swapping them out for shiny new systems can boost efficiency by 25% in just half a year, but it takes some serious planning.

Here’s the game plan:

• Check the Old Gear: Size up your current tech setup to see what needs a facelift.
• Take It Slow: Roll out new systems bit by bit to keep things smooth and allow for tweaks.
• Train and Support: Make sure everyone knows the ropes and has help when they need it.
• Move the Data: Shift info from old to new systems safely and smartly.
• Keep an Eye on Things: Watch how the new systems perform and tweak as needed.

Challenge	Impact	Solution
Resistance to Change	Nervous employees, slow uptake	Keep talking, get everyone involved, train, lead the charge, celebrate wins
Managing Legacy Systems	Revenue drain, inefficiency	Check the old gear, take it slow, train, move the data, keep an eye on things

For more tips on tackling these hurdles, check out our articles on business model transformation strategies and business model optimization techniques. Getting a handle on these challenges is key to making new business models work and getting your organization firing on all cylinders.