Make the digital shift and disrupt your industry: Business model examples
- Business Model Shifts
We are living in a fast-moving world, where every day new innovations and crises catalyze shifts in consumer demands. Businesses all over the world are on a constant march towards relevancy. With the COVID crisis still underway, the nature of customer needs has once again pivoted. Companies are taking advantage of the improvement of technology to better serve their changing customer needs. Let’s have a look at a couple of these companies:
An American ground mobility company that has dedicated it’s resources to design transportation for the future. The company has a strong belief in the power of open-collaboration and co-creation. Local motors is disrupting the transportation manufacturing industry by doing things fundamentally different. The company has developed a method to design, make and sell vehicles at a fraction of the normal costs. The company has a network of micro-factories that utilize technology such as 3D printing to make this possible. Local motors was able to bring their Rally Fighter car to the market in a record breaking 18 months. In 2014, they were also the first company to 3D print a car. This was possible due to the fact the car consisted of about 50 individual parts whereas a normal car consists of roughly 30,000 parts. The company is working on numerous innovations, including Olli, their co-created self-driving, electric passenger shuttle which is already in service in 3 countries around the world.
Find more about their story here.
When you think of car insurance you think of paying a monthly premium for a service that covers any accidents or damage that happen to your car. Metromile has innovated the traditional car insurance process. There has been no significant changes to the $288 billion business of car insurance since the first car was developed in 1897. Customers only pay for the miles that they drive the car, rather than paying a standard premium even when they do not drive. Each customer installs a Metromile Pulse into their vehicle, which calculates mileage data to determine how much to charge each customer per mile driven. The San Francisco based company figures that they save their customers $741 per year on average. Having a device in each vehicle gives customers a hyper-personalized experience, not only when generating an appropriate insurance premium but also when it comes to making claims. Metromile has found a way to speed up the insurance process drastically. Customers can schedule repairs through the Metromile app almost instantly. The company has done a fantastic job at looking into the main pains their customers face and then using technology to alleviate that pain. As a result the company has catapulted themselves to success.
Learn more about Metromile here.
Both Local Motors and Metromile have seamlessly integrated customer-centric design and technological innovation to develop value propositions that tackle real customer pains. Whether it is through transportation or through car insurance, good business model designs with understanding your customer’s needs and then developing a solution with the aid of technology.
These are just two companies in a sea of innovation, we have developed a trend report where you can learn from a selected number of different companies and what they are doing to better serve their customers.
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