A crucial part of any business model concerns its economic dimension. An incorrect business model can result in low effectiveness of an organization and financial instability. And should the company still manage to be profitable, this can take place at the expense of important values, such as: low quality product, irritated and exhausted employees, complicated and disorganized relationships with providers, high operational risks and consequently, increased expenses, and dissatisfied and non-loyal clients. The resilience of an organization facing such challenges then becomes questionable.
When an organization fully understands who its consumer are, it should ask what features its product should have and what the main channels for providing this product are, what value it creates for consumers and what economic model it should have – in order to operate effectively and achieve top results with the existing resources available. If needed, such companies can easily transform their business model, by re-modelling it to modern requirements and challenges.
For start-up companies, a well-chosen business model can guarantee that the product they offer is tailored to the needs of potential clients and when pursuing a new market, that the capacities available in the company will be utilized to the full. As a result, resources will be correctly calculated.
As for already established, strong companies that have achieved success through a specific business model, they often fail to realize that in the meantime, their business model still requires revision and update. Often, when such companies suffer from stagnation, they fail to see the need for change in their business models and utilize time and resources unwisely to solve problems. On the other hand, successful companies know that their business model is a live and constantly changing system that will be revised from time to time and will be transformed in compliance with market requirements, consumer behavior and new technological challenges.
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We help companies in assessing the effectiveness of their business model, the formation of a new business or transformation of an existing one. In this process, we are guided by the company’s values and goals, and we do our best to tailor the business model to clients and in general, the market needs so in the end, everything results in sustainable economic development.
When developing a business model, our cooperation with a client involves the following stages:
The following phase is an evaluation of the organization’s current business model based on insights identified during diagnostics. In order to ensure the effectiveness of decisions, ACT’s consultants organize workshops with the participation of those responsible for the strategic business domain of the client company. This stage also involves making decisions on the need of transformation of the business model and identification of the required changes.
This stage involves the renewal and improvement of separate components of the business model or full transformation.
The final stage is the incorporation and implementation of a new business model. This is the stage when ACT empowers its clients in the following directions: