1What stopped working
Which of the model's four elements is exhausted: who we sell to, what we sell, how we get paid, how we deliver.
Business Model Transformation
Transformation changes the structure itself. A cosmetic repair won't do that. We design the new model, test it at small scale and shift resources in stages, without stopping what still makes money.
Sound familiar?The old model delivers results with more and more effort, The company has grown, but its processes and management have stayed the same, Changes get launched, but the system slides back to its old state
Business Transformation
How we work
1
2A hypothesis for the new model
In the same four elements, with the economics.
3A small-scale test
One segment, one region, five customers, without stopping the main flow.
4Shifting resources in stages
In reversible steps, with a stopping point named in advance.
Sound familiar?
- The old model delivers results with more and more effort.
- The company has grown, but its processes and management have stayed the same.
- Changes get launched, but the system slides back to its old state.
What usually lies behind it
Transformation is needed when the old structure no longer fits the scale, the market or the economics. It's better to start before the business breaks. The signs: improvements in individual functions don't add up to an overall result, customer acquisition cost grows faster than the average order, and customers leave for a different way of solving their problem.
What you get
The mechanism that failed, named.
A tested hypothesis for the new model, with its economics.
A staged transition plan with owners and criteria.
The cost of waiting
If nothing changes
- 01
Complexity will grow faster than efficiency.
- 02
Old processes will start to limit new opportunities.
- 03
The eventual rebuild will cost more because of accumulated inertia.
When you don't need this service
- The business is in an acute crisis. Stabilization comes first, transformation later.
- The model works and the downturn is temporary. Then you need optimization.
How to tell it worked
Economics of the new model
margin, customer acquisition cost and deal cycle, tracked separately for the new model.
Usage
how much the new model is actually used.
Inertia
how many old processes are still pulling the system back.
Questions
How is transformation different from optimization?
Optimization improves the current model. Transformation changes what you get paid for and how delivery is organized.
Can we transform just one line of business?
Yes, if the rest of the system doesn't block the changes.
How do we avoid breaking the business along the way?
Don't touch what still makes money first: it funds the transition. Shift resources gradually and reversibly.
Related
Services: Business Model Review · Strategic Planning · Management System Materials: When the model stops working · Crisis: the first 30 days
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Public company case analysis
Blockbuster
Blockbuster launched online rental and nearly caught up with Netflix, but the transition proved expensive and the course was changed. A case analysis with a timeline and sources.
