At Awesome Journey we see a common theme between leaders like Elon Musk (Tesla), Jeff Bezos (Amazon.com), Suzanne West (Imaginea Energy) and Uber (Travis Kalanick). They are all disrupting their industry by finding ways to innovate their “Business Model”.
At Awesome Journey we see that the four key building blocks of a successful “Business Model” are:
- Client Value Proposition
- Who is your key target client?
- What is the job that the target client needs done?
- What is your product and service offering?
- What is your distribution model to reach your key target client?
- Profit Formula
- What is your revenue stream?
- What is your pricing model?
- What are your cost structures?
- Key Resources
- What are your key resources you will need to support your product and service offering (physical, intellectual, people & financial)?
- Key Processes
- What are your company’s key processes that will allow your organization to deliver product/service offering in a way that you can be consistent, reliable and scalable to grow?
Example: What is allowing Uber to take market share away from traditional Taxi companies worldwide?
They have changed the “Business Model”. Two key changes are:
- Their distribution model – web based via an app to connect with client vs a call centre
- Their pricing model – 75% goes to the Uber driver and 25% goes to Uber
Challenge: Where can you and your leadership team begin to challenge your existing “Business Model” so you are able to grow in the Digital World?