How to Use Patterns to Shift an Outdated Business Model to a More Competitive One
In a previous post, I explained how business model patterns help entrepreneurs and business leaders go beyond the traditional means of competing on product, service, technology or price. Ultimately, create better, more resilient businesses. But no business model can live forever.
Here I show how business model patterns can help executives and innovation teams think through how to substantially improve their current business model by shifting it from a less competitive to a more competitive one.
What got you here today, won’t get you there tomorrow. When the time to renovate a business model comes, leaders face a challenging endeavour. They need to continue to operate the expiring business while simultaneously exploring the shift to a new, competitive one. In The Invincible Company, we codify 12 different SHIFT patterns. Each pattern helps you think through how you could substantially improve your existing business model. Leaders and appointed transformation teams can use the Shift Patterns Library as inspiration. Along with rigorous testing to reduce risk and uncertainty, the Shift Patterns can help you shift your existing business to a more competitive one.
SHIFT Patterns Library
We designed a library of 12 business model shift patterns to help you explore how to shift from an old to a new business model. Like invent patterns, the shift patterns serve as a reference library or inspiration to help you build a business model on top of an existing one.
One of the more obvious patterns is the shift from Product to Recurring Service. It illustrates how a company can shift from manufacturing (and/or buying) and selling products toward providing a recurring service. This shift can help a company get more predictable revenues that grow exponentially because you build on top of a continuously growing base of customers. The shift is illustrated in the animation below.
In a next blog post, I will illustrate the Product to Service SHIFT with the Hilti case. And we will go behind-the-scenes with Dr. Christoph Loos, CEO of Hilti, to understand what it took to lead and successfully execute such an overhaul of their business model.
Want to know more about business model patterns? Order your copy of The Invincible Company book today.
Note: an earlier version of this post was originally published on the Strategyzer blog
