How do business leaders ensure that digitalization makes a sustainable impact on their business? This question has been on the mind of many leaders who have tried to figure out the latest trends in technology and how it affects them.
The Hype Cycle
Technologies like artificial intelligence, blockchain, and quantum computing have become more popular in recent times. Even though these trends are initially hyped. Executives know that part of the hype cycle includes the last phase when the initial hype has faded.
This has caused many organizations to abandon projects because they find them difficult to identify. The benefits that this so-called new technology has brought to their business. Many companies find it difficult to look past the shiny objects that come with new technologies. As a result of this, they dedicate too much attention to the technology side without considering the attendant benefits they are expected to get.
One approach that has proved to be successful is to think of digitalization as a business model innovation against technology-related change.
The business model canvas
The business model canvas has helped organizations to outline their business models since the late 2000s. The model centers on the key elements that businesses rely on. These elements include the value proposition, key activities, key partners, customer relationship channels, cost structure, and revenue streams. This serves as a checklist to ensure that none of the key elements are overlooked. At the same time, we can consider all the elements together. As such, we understand how they relate together. Sometimes changes in one element would have ripple effects on the whole canvas of the entire model.
How to make the most of the business model canvas for digital transformation. Similar to generating business models, digital transformation is one of the key challenges that many organizations face today. This is true, especially for small and medium enterprises that do not have large projects or the talent pool to carry out innovation.
Map out your current business model
When you set out on a journey, you need to know where you are before you can know where you are going and how to get there. Begin by mapping out your current business model. Go through the nine elements of the canvas as it relates to your business.
This would add an important baseline to your transformation effort. It is important not just to fill in the box, but to pay attention to how the elements relate to one another. This can review whatever issues are limiting your business growth.
For instance, a company developing medical tools and medical disposables when they sketched out their current business model realized that their relationship with the end customer that is the pretty patient was made dated by doctors who interact with the patients directly. This limits the company’s ability to get direct feedback on their products and the quality of their service from my customers.
It also limited their ability to get patients to know about the customization opportunities that they could benefit from, including insurance coverage.
Engage with the transformation opportunities
Find out ways to engage with transformation opportunities that were revealed in the previous step. A ranking exercise will let you identify key elements to focus on. Then you can develop the necessary changes. You can carefully examine the key changes and the ripple effect they blamed on the business. This has proved to be essential if teams want to break down the overall effort into manageable chunks. It also helps ensure that there is a coherent vision throughout the organization for the results of the transformation efforts.