Challenges in Innovating Your Business Model

Bâton Global has provided clients with sound guidance when developing strategic objectives that create change throughout the organization.What are some of the challenges that organizations face when innovating existing business models?

Failure to Think Outside of the Box

It is easy to benchmark an existing organization’s existing business model against other organizations in the same industry. Organizations that are in need of innovation the most typically exist within industries where other organizations face the same challenge.

Companies need to look beyond their own industry for new ideas. A thorough external analysis that looks into other industries or organizations that are innovative can help inspire the creation of innovative strategies that revolutionize the existing model.

Product and Process Innovation Isn’t Enough

There has been much discussion surrounding specific process and product innovation (such as blockchain and the Internet of Things) and their potential to transform organizations. These changes will most likely have a positive impact on organizations, but they won’t create fundamental business model innovation on their own. Rather, business model innovation occurs when changes are made that keep both the customer and the organization in mind.

Bâton Global provides strategic planning that factors in organizational, customer, financial, and community impact. Sound strategic plans that align objectives and future goals with the needs of the organization and customer support process and product innovations in making fundamental changes to the business model.

Employees Don’t Have Necessary Tools

Another challenge that many organizations face relates to lack of employee engagement and development. In traditional organizations, a strong hierarchical typically structure exists, and employee communication channel sand interactions with decision makers are insufficient. In order to create fundamental business model innovation, employees need to be provided with the tools and outlets that allow them to be creative in their thinking and share new ideas. This is important because those who execute on the objectives of an organization typically have insight into the processes and systems that can evoke business model innovation.

Bâton Global has found that engaging and developing employees through community forums and the implementation of training programs at multiple levels of the organization leads to higher levels of critical thinking. By providing development opportunities, organizations promote innovative thinking, expression of opinion, and the fostering of more discussions around business model innovation.

Conclusion

Solutions to business model challenges can be applied through the implementation of a strategic management system. Bâton Global has established management systems for clients that are tailored to the continuous improvement goals of the organization. These systems assist in solving the challenges in seeking business model innovation, and solutions are implemented by the organization with guidance from Bâton Global.

Are you facing challenges in innovating your business model?