Business Model Transformation

Business Model Transformation is a process improvement system that guides you through tried and tested techniques for increasing profitability of existing business operations.

Business Model Transformation is a programme of change that combines incremental and disruptive approaches to value creation within your company. When a company adopts the system, it strives to improve its processes in meaningful ways. This is not just a one-time improvement, but a commitment to excellence by constantly testing and improving the workflow, day in and day out.

The core principle of Business Model Transformation is to identify and make a combination of large innovative changes in your key business activities and small immediate improvements in the processes and standards within your business. Through the involvement of all staff during programme implementation we can, over a period of time, make small rapid improvements become part of the culture of your business, long after the initial programme implementation.
Dramatic improvement initiatives utilising the latest management techniques or technology can be tempting. The appeal of that one time fix by throwing money at the problem is unfortunately often just a mirage. Rather a strategically applied combination of innovative and incremental changes over a period of time have the effect of sustaining business activity and profitability over the long term. This combination has the effect of embedding the business improvement process into the DNA of your company. Have you considered the issues with the alternative “silver bullet” programme?
  • Can you afford the upfront cost? You will normally have to invest significantly at the beginning of an improvement programme whether this is to consultants or by moving staff from existing roles to manage the project.

  • What happens when the initiative is finished or the consultants go home? How do you maintain the benefits?

  • Do you have the staff resources to dedicate to the programme?

  • Does your staff have the required skills to implement the changes and then maintain them?

Business Model Transformation is based on fundamental, tried and tested techniques for business improvement. Rather than big changes chasing big results we apply first principles to:

  • Focus on immediate improvements with long lasting long term benefits to culture, efficiency and bottom line profitability.
  • By involving staff in the incremental improvement their processes and skills develop as part of the changes, embedding those changes and practices within your business.
  • Implementation is not disruptive rather it is incorporated into everyday activity.
  • Based on the approach “Small steps done many times” we aim for long term lasting change built into the DNA of your company. It requires a small investment of money, but a large investment in effort, cooperation and training. When done correctly the results are significant.

The Business Model Transformation system has been developed through our experience within the field of business innovation draws upon the Toyota Way for continuous improvement and research by thought leaders in business innovation such as Clayton Chistensen, Oliver Grassmann and Alexander Osterwalder to name a few.

All successful businesses operate within their own effective business model, but what does this mean? Put simply it answers the question “How do we deliver value to our customer at an appropriate cost to make money.” It may not come as a surprise but research by University of StGallen, Switzerland, shows that ninety per cent of new business models aren’t actually new. Instead it is the application of existing business models to other industries or in innovative ways that creates value.

The first step in the Business Model Transformation system is to understand your existing business model in a way that identifies the component parts and makes their relationships visible.