31. Nothing lasts forever: The need to reinvent your business

According to the International Monetary Fund’s ‘World Economic Outlook’, Britain will be the best performing of the world’s largest economies in 2014.

A key contributory factor to Britain’s expected 2.9% GDP growth this year is the strongest rate of growth seen in the manufacturing sector for three years; anticipated at 3.8%.

The manufacturing sector in the UK is going through somewhat of a reinvention, with the Government’s ‘Future of Manufacturing’ report noting that successful firms in the sector will be capable of ‘rapidly adapting’ to the changing face of manufacturing.

Complacency breeds failure

Of course, it’s not just companies in the manufacturing sector who need to reinvent themselves to continue to succeed.

As technology continues to evolve and the global marketplace continues to become more accessible, firms across the spectrum of industries need to look at ways to reinvent their business models to remain competitive and sustainable.

Complacency is one reason that many companies fail to reinvent themselves. If the business is performing well, many owners do not feel the need to rethink their strategy or business model.

Those that do however, are more likely to come out on top. Rethinking your business model when the organisation is performing well, and has the momentum to drive through change, is often much easier than if the business is stuck in a rut.

Think outside the box

Disruptive technology, a topic covered in a previous article, is one way that businesses are using changes in technology and consumer demand to reinvent their business model and stay relevant.

These disruptive business models often originated outside of the industries that they are now being used in; the subscription model used within the magazine industry for years is now being adopted by cloud based content publishers such as Netflix.

Within business, cloud based, subscription focussed business models have changed the way organisations operate; Dropbox for instance allows for files to be instantly shared globally, at no or little cost.

Convenience is a major attraction here, both for business and private consumers, with many disruptive business models making life easier; who would have thought you would have snacks delivered direct to your desk before Graze came along for example.

One key driver for business reinvention is consumer demand; serving your customer’s needs better, and building a stronger relationship with them is critical to business success.

If you as an owner can anticipate how consumer demand is likely to change, and can then act to put a business model in place to serve that demand, yours will be a business of the future.

Look further afield than your competitors; look at the most successful companies in the world, regardless of industry. They are constantly evolving and reinventing their business model to ensure the consumer is at the heart of everything they do.

Often, reinventing your business model means simply taking the most important element of your business, the customer, and putting them first.

To find out more about reinventing your business model, or if you would like to discuss any of the topics covered above further with Tectona Partnership, please contact Mark Nicholls on 07818 407061.

Posted in Tectona Ten - Compliance and Managing Risk, Tectona Ten - Strategic Leadership.

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