One of the game changing tools set is Business Model Innovation and Dolmen have for the last 5 years been at the forefront in its application and hands-on mentoring business in its practical application.
We have run six programmes:
1. Innovation Connections in UK& Ireland
2. INSTIL in Trinidad
3. PIP in Kerry, Ireland
4. CIME in South East Ireland
5. Train the Trainers, Barbados
6. Driving Innovation Workshops, Ireland
In total 307 companies. Where the Business Model tool is the core on which we are getting business managers to explore new ways of operating, refining & developing and scaling their business, in terms of:
- Creating new significant value for their customer’s customers.
- Capturing that value in their business model.
- Delivering that value in most effective manner.
Easy to say what it can do but more challenging to implement, as it requires a complex balancing of over thirteen key elements and the role of leading the activities and managing the risks involved.
WHAT BUSINESS MODEL DELIVERS TO ENTREPENURERS / START UPS?
The business model chart tool is used to mentor entrepreneurs and inventors to visually communicate and explore how their idea can be developed into a viable commercial business. Most times this visual process demonstrates in a dramatic fashion to them their lack of robust design thinking around the entire complex commercial, technical and market elements which are critical to developing a successful business.
So instead of drafting a business plan to get funding, more fundamental design business thinking happens first around what type of business model is needed. Ensuring the differential they will deliver by reviewing every element of their business against resources needed. Inspiration can be taken from in-depth research into the business models of high performers in other countries in the same or different sectors. The elements that fit best to the individual can be incorporated.
The next step is to develop a roadmap to research, mange and balance out all activities and tasks to be undertaken in developing a innovative business model, starting with a vision and objectives from the outset. Prioritising what will deliver the most value and impact to creating the real business model.
WHAT BUSINESS MODEL DELIVERS TO MICRO ENTERPRISES?
Most of these businesses have complex issues to deal with, from under funding, family managed, no formal internal processes, too busy working in the business to have time to work on the business, wearing several hats and managing all the risks!
But this is the group that have surprised me the most. Using the business model chart the majority can see with great clarity the issues they have to manage better in their business model to enable more sustainable business and enable the MD to focus on creating opportunities for growth.
A roadmap is then used to balance running the existing business with new initiatives to drive change.
Growth of revenue and employment in these businesses, which are ready for this process, is achieved within 12 – 18 months and many are involved in small scale exporting.
WHAT BUSINESS MODEL DELIVERS TO SMALL & MEDIUM COMPANIES?
This is where business model balances well with technical innovation tools and techniques. The essence of a quality business model starts with what is the real customer / market need that is validated and unmet by competitors. Using this information to work backwards into the value proposition of the bundle of services, processes and products needed to deliver the best solution to these customers and build the business model around this.
The process used is to define the company’s vision and objectives and in parallel map the current business model. Then define what the proposed new business model should look like and what tasks need to happen to make delivery on the objectives set (commercial, technical & market). The next task is to explore each element of the business model, identifying what needs to be done and prioritise each activity / task base on sequence, value and impact it will deliver to the business.
In addition we also review the external pressures on the business model to identify and manage all the risks involved. A roadmap is then set out to implement the changes; this takes leadership, an innovative company culture and a process that has good decision making process built in to manage the risks and external dynamics.
Business Model can be used by SMEs in many different ways, sometimes just to integrate a new service or product offering into an existing business and using it to ensure all the interlinking other elements of the business are aligned and have resource and capacity to support and deliver this new service, many times also into new markets, all focused on managing and reducing the risks of failure. For more information on how Business Model Innovation can work for you contact Sean McNulty.