Review and modify: two actions to keep business model current

Having a robust business model is not enough. Firms must keep the business model up-to-date amidst changes taking place internally and externally. One way to take stock of the health of it is to review periodically. Second one that is equally important is to attempt required modifications to the model so that both effectiveness and efficiency are ensured:

Review: A periodical a review must be ordered to examine and report on two factors enshrined in any business model: effectiveness and efficiency. A review as the title suggests is more of breath rather than on depth yet it must address the question whether business model is achieving its intended purposes. Such a review is like doing annual medical check-up; you just get a bill of good health. According to a study carried out by KPMG, it was found that 47% of businesses surveyed conducts some form of review every year to determine the usefulness of business model and to find out whether any changes are warranted. 

Modify: In most cases minor modifications are recommended as a result of periodic review.  In line with the gist and meaning of the word modify, an exercise of this nature tends to make few changes that are minor or partial. Modifications could be effected in elements, arrangements of the components and perhaps in the business model structure itself to ensure operations go through seamlessly and with the purpose intended in both value network and value architecture such that cost and revenue systems get required boost. Firms that fail to adopt modifications might find themselves in hot water time to come.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist