When considering how to achieve and sustain your competitive advantages in the global economy, managers emphasize future changes in business models. While business strategies were the main driver of the development of competitive advantage over the past three decades, the latest research indicates that in the future, permanent competitive advantage will be realized through transformed business models in combination with a thoughtfully designed business strategy.
Over the past decade, we have faced dramatic changes in the global economy. The globalization and digitalization of business are far more significant challenges than they were in the past. It is estimated that new technology trends will significantly influence the shape of newly created business models and that in the future, 70 percent of successful business models will contain unstable processes by design to facilitate a more agile response to the fast changes in consumer behavior. A major challenge for managers is deciding which type of business model transformation to undertake.
Business model innovation is a privilege reserved for the first, while everyone else needs to take on the demanding journey of evolutionary or transformational reshaping of their business model. While the evolutionary approach is directed towards improving the efficiency of the existing business model, it does not guarantee that this model will even be applicable to the new business conditions. The transformation approach, on the other hand, requires a longer period when the “old” and the “new” business models coexist, as the company is finding answers to many demanding questions, while they are undergoing a transformation.
How can Unikatum help you with this?
By working with us, you gain:
© 2024 Unikatum