6 business model shifts to explore
- Business Model Shifts
Uber and Lyft took over the streets of San Francisco. Few yellow taxi’s are now left to serve tourists. The locals have shift their behavior and adapted to their platforms. The same pattern will follow in other cities. Amazon took over the logistics of your groceries. Starting with selling books they shifted to 24/7 logistic services and take food to your home as cheap and fast as possible. Netflix disrupted the video stores. They made the shift themselves by moving away from renting and shipping single DVD items to an ‘all you can eat’ subscription to tailor-made on-demand streaming service producing amazing series like Narcos and Breaking Bad. Alibaba shifted from a marketplace to help entrepreneurs in Asia to run their businesses into offering additional services on entertainment and financing. BMW will shift its traditional individual car manufacturing and sales model with robust engines to a mobility services model. Nike and IKEA will shift its singular waste business model into a zero waste circular business model.
The number of business model shifts has increased.
We have learned that in more stable economic times in the past the number of business model shifts have been limited. No need to change a linear business model. Right now in environments that are evolving at exponential rates, these shifts have accelerated and become a blind spot for companies. In this kind of environment, it becomes important to understand the longer-term dynamics that are playing out on the broader business terrain and how that terrain is likely to evolve to determine whether the company has the capabilities and position in the marketplace to capture value over time relative to other players. As data generation and capture become both cheaper and more pervasive, new business models will emerge where more and more of the value delivered to the customer resides in the data rather than the product or service. Data will become more central to the value received by the customer.
What is a business model shift?
A move or cause to move from one place to another, especially over a small distance (source: Wikipedia). A business model shift is a small change in a current business model; the now. A shift of a value proposition. A shift of a customer segment. A shift of a revenue stream. A shift of a resource. A combination of small shifts is grouped into 6 business model shift movements.
We see 6 business model shifts after studying 150 business models.
We analysed over 150 business models including BMW, Toyota, Tesla, Youtube, Apple, AirBnB, Uber, Zappos, Coolblue, Amazon, BMW drive now, Mercedes, Evernote, Hatsune Miku, Netafim, Atlantic Resources, Stellar, Metrobank, We.org, Juno, Tencent, Alphabet, Starbucks, Blue River Tech, Southwest Airlines, Spotify, Glow, Henry Ford Hospital, Womens World Bank, CitizenM, Wework, Zoku, Patagonia, Techshop, Netflix, Game Comp, Tiffany, SpaceX, Paypal, Pinterest, Blablabla car, Car2Go, Sustainable South Bronx, Kahn, Snapcar, Fitbit, Reddit, Kiva, Walmart, Etsy, Waze, Kickstarter, Wikipedia, WordPress, Yammer, Yelp, Facebook, Instagram, Wechat, Twitter, Slack etc. and we will include them in the book. And what do we see:
- The Platform Shift, from Pipeline to Platform. Value is created in the interaction, not in the transaction;
- The Digital Shift, from Physical to Digital (and vice versa). Value is created in accessibility and filters;
- The Services Shift, from Products to Services. Value is created not in the product but in the job to be done – the problem you solve for customers;
- The Exponential Shift, from Incremental to Exponential. Value is created in supporting exponential growth by means of a self-sustainable value mechanism in your business models;
- The Stakeholder Shift, from Shareholder to Stakeholder. Value is created not with shareholders only but in moving beyond profit; Profit with a Purpose;
- The Circular Shift, from Linear to Circular. Value is created in re-use and reduction of waste and a value proposition customers are willing to pay for.
Yes! time for a new book.
Time for a new book to understand business model shifts. It is about understanding the business model shifts currently happening and available to you to make a bigger difference for your customers. Understanding the contextual trends that drive those shifts. Understand where customer value is moving. It is about where the value is heading next. It is about companies that are exploring new ways to create, deliver, and capture value. Understand how to make the appropriate shifts for your business. Shifts that bring you closer to your ambition to create the future. Learn about successful models, learn about failures. Learn about what steps need to be taken in order to make the appropriate shifts.
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