Scaling New Business Models: 3 Essential Takeaways for Digital Success

Written by Axel Groothuis | Jun 28, 2024 7:41:26 AM

In today's rapidly evolving digital landscape, businesses are compelled to innovate and adapt to stay competitive. The emergence of new business models—such as subscription services, product-as-a-service, and direct-to-consumer channels—offers companies avenues to diversify revenue streams and enhance customer engagement. However, scaling these models effectively requires strategic planning, technological integration, and a keen understanding of market dynamics.

At Emixa, we've collaborated with industry leaders like IKEA, Mondelez, and Intergamma to explore the intricacies of scaling innovative business models. Drawing from these experiences, we've identified three critical takeaways that can guide organisations on their digital transformation journey.

Step 1. Embrace Incremental Progress: "Ten Small Steps Make One Big Step"

Launching a new business model doesn't necessitate an all-at-once approach. Starting with smaller, manageable initiatives allows for testing, learning, and refining strategies before full-scale implementation.

Example: Intergamma's introduction of an in-home advice service for window decoration began as a pilot in eight DIY stores. Promoted locally and supported by employee training, the service's success in these locations provided valuable insights and a foundation for broader rollout.

Step 2. Leverage AI Thoughtfully: "Use AI, But With Caution"

Artificial Intelligence (AI) offers transformative potential in scaling business models— from personalising customer experiences to optimising supply chains. However, it's imperative to approach AI integration with a balanced perspective.

Considerations:

Data Privacy: Ensure compliance with regulations and maintain customer trust.
Bias Mitigation: Implement measures to prevent algorithmic biases that could skew decision-making.
Transparency: Maintain clarity in AI-driven processes to facilitate stakeholder understanding and acceptance.

Step 3. Plan for Scalability: "Consider Scalability and Feasibility"

Scalability isn't solely about increasing capacity; it's about ensuring that every facet of the business model - from technology infrastructure to human resources - is prepared for growth.

Strategies:

Process Optimisation: Streamline operations to handle increased demand efficiently.
Technology Infrastructure: Invest in scalable solutions like SAP S/4HANA to support expanding operations.
Employee Training: Equip teams with the necessary skills through Training Services to manage new systems and processes effectively.

Final Tips

Scaling new business models is a multifaceted endeavour that demands careful planning, strategic use of technology, and a commitment to continuous improvement. By embracing incremental progress, integrating AI responsibly, and ensuring scalability across operations, businesses can position themselves for sustained success in the digital era.

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Meanwhile, our experts are happy to share their insights and explore how your organisation can accelerate your digital transformation.

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