When you should start redesigning your business model?

Mild changes taking place in the market place do not warrant major overhaul of business model that is running so far so well. Firms can do a review of business model and incorporate few albeit minor modifications. This review-modify syndrome works excellently well in these circumstances. Substantial changes happening internally and externally should alert the firm to quickly evaluate its position and then only settle for redesigning of business model.

The rule number one is evaluate your business model first. Rule number two is redesign your business model next. Any attempt of redesigning before proper evaluation is similar to placing the cart before the horse and amounts to just knee-jerk reaction that is bound to fail colossally.

Evaluate:      In contrast to review, evaluation of business model has both breadth and depth in that it examines elements, assesses their use and passes judgements as regards to their contribution in making business success. An evaluation focuses on validation of the business logic of a company and must be comprehensive. When a company is not doing well in terms of corporate objectives or when it is being bolted by major changes taking place in the market place an evaluation must be on the wheels.

Redesign:     Unlike in the case of modification, redesigning business model is like handling an overhaul of your vehicle. Revising business model components along with rearranging them to function differently is the fundamental focus in redesigning. Such a complete fix up should cover two areas: how the business logic can be improved and how elements in value creation, delivery and capture are co-ordinated for better results. It is advisable to go for redesigning when things are falling apart internally when faced with external rocky situations.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist