Changing business model should be part of the reflections that any entrepreneur must lead.
It is enough to observe the evolution of transport such as the Vélib ‘, the scooter, the scooter which in a decade lived each at their all their hour of glory then to be abandoned according to the regulations, the vagaries and the crises. For entrepreneurs, what are the methods to apply to get this change accepted by their teams and their partners?
Adapt, the watchword
With the rapid development of the markets, companies are forced to adapt under penalty of losing ground and being in a financial situation that it will undoubtedly be difficult to straighten. Competition can become such that an innovative idea can become obsolete in a short time. In this context, changing business model is a difficult choice but is often necessary
A convincing example
The example of Gillette which displays 4.7 billion losses in the 4th quarter of 2018-2019 according to the brand manager due to the beard fashion, makes it possible to think that Gillette must be in full reflection to find a new angle for conquer customers. New habits can, on the contrary, make it possible to develop a flourishing business like that of the nails and the fashion of tattoos that have flowered into an incessant flow.
Appropriate change
With a view to a change of business model, regardless of the size of the company, federating employees is an essential step for the new advocated economic model to bear fruit. Changing mentalities may appear as a brake or constraint: entrepreneurs will therefore have to be voluntarism to present this innovation as an opportunity. This process must offer each employee the means to become an actor and not a spectator. By allowing employees to explore new possibilities, managers fully involve them in the change of business model.
Rethink managerial policy
Economic model innovation very often comes up against difficulties in terms of management. It may find it difficult to impose itself in the face of the immobility of executives or the internal balance of power. It then appears necessary to develop adequate communication, putting the change at the heart of the company’s project. The teams must understand that developing new products is useless if the organization of the company is not redesigned.
Exceed the framework of the product
To succeed in reinventing itself successfully, the company must go beyond received ideas, in particular the one that the product is king. When a market evolves, the product is no longer a master, whatever the history of the company in its sector. Leader of the field of musical trading, Sony has today completely disappeared from the market for having stubbornly married walkmans while digital technology took over with Apple’s iPod. All the forces of the company must assimilate that it is crucial to be in accordance with current developments.
See further than initial constraints
In the first difficulties, leaders prefer to return to their traditional model. The reason most often invoked is technical. IT departments do not want to rethink their entire system to adapt to the new economic model. The challenges are such that it is necessary to override these reluctance. Resources must be put in place in order to have the psychological CAP crossing the change to the most directly affected employees.
Consider long -term benefits
Another recurring brake is the fear of the risk of cannibalization. Indeed, the changes adopted can affect a significant source of income from the company. This is what prompted Kodak not to take the digital turn, for fear of seeing his profits decrease in the development of photo films: a catastrophic choice, which caused the loss of the company. Even if the decisions taken decrease the revenues received in the short term, the change should not be questioned. Entrepreneurs will therefore have to know how to highlight the enormous long -term economic potential that contains any evolution.