20 reasons why SMEs need new business models
Jonas Reuter
In today's fast-moving and increasingly interconnected business world, standing still is not an option. The continuous change in technologies, customer behavior and market conditions requires companies to be constantly adaptable and willing to put existing business models to the test again and again. As the managing director of a medium-sized company, you are therefore required to continuously rethink and redesign your business strategies. The following article shows you 20 reasons why working on new business models is not only a necessity, but also offers immense opportunities. Each of these reasons represents an opportunity to add value to your business, whether through improved efficiency, increased competitiveness, better customer loyalty or sustainable growth. Discover the potential that lies in the continuous development of your business models.
#1 Value creation
Increase the value of your company and achieve sustainable growth through value-adding business models.
After all, new business models are about creating value - for your company, your customers and your stakeholders. By optimizing your processes, improving your products and services or tapping into new sources of revenue, you can increase the value of your company. This can lead to sustainable growth, increased profitability and long-term business success.
#2 Digitization
Optimize processes and expand your market with digital business models
Digitalization is a development that cannot be ignored. Managing directors must recognize that digital transformation is not just a buzzword, but a strategic necessity in order to remain competitive. New digital business models offer you the opportunity to optimize your processes, reduce costs and increase your productivity. You can also expand your customer base and tap into new markets through digital offerings. With the right digital strategy, your company can not only become more competitive, but also more innovative and customer-oriented.
#3 Cost savings
Reduce your costs and increase your competitiveness through efficient business models
Efficiency and cost management are important factors for the success of any company. New business models can help you reduce your costs by enabling more efficient processes, new technologies or resource optimization. Reduced costs can lead directly to an improvement in your profits and at the same time increase your competitiveness by allowing you to offer better prices.
#4 Growth
Open up new markets and expand your customer base for sustainable growth through innovative business models.
Growth is a central goal for every company. New business models can be an effective way to achieve this goal. They can enable you to enter new markets, expand your product range, optimize your processes or broaden your customer base. With the right strategy and the right implementation, a new business model can take your company to the next level and enable sustainable growth.
#5 Competitive pressure
Strengthen your market position and promote your company's growth through innovative business models
The business world is dynamic and the pace of change has only accelerated in recent years. Companies that do not continue to develop their business models run the risk of falling behind the competition. As a managing director, you have the opportunity to gain a competitive edge through innovative business models. Whether it's utilizing new technologies, tapping into new markets or developing unique products and services, a new business model can help strengthen your position in the market and take your company to the next level.
#6 Technological change
Increase your operational efficiency and open up new sources of revenue through technology-oriented business models
Technological innovations such as artificial intelligence, blockchain, the Internet of Things and big data are changing the way companies work. CEOs must rise to this challenge and develop new business models that utilize these technologies. With the right strategy, you can increase operational efficiency, reduce costs, improve customer loyalty and open up new revenue streams. In addition, technology offers the opportunity to develop completely new products and services, taking your business to a whole new level.
#7 Innovation
Set yourself apart from the competition and increase your company value through innovative business models
Innovation is a crucial factor for success in today's highly competitive environment. As a business leader, you can bring innovative products and services to market by introducing new business models to set yourself apart from your competitors. Innovation not only creates differentiation in the market, but also increases your company value by opening up new revenue streams and increasing customer loyalty.
#8 Customer loyalty
Improve customer loyalty and increase sales through customer-centric business models
In today's competitive business world, it is crucial that you not only attract new customers, but also retain existing ones. Through new business models that create added value for your customers and are tailored to their individual needs, you can improve customer loyalty. This can lead to increased customer loyalty, positive word-of-mouth and ultimately higher sales.
#9 Increasing efficiency
Optimize your processes and improve your profitability through efficient business models
In today's business world, efficiency is key. Companies that optimize their processes and work more efficiently can reduce their costs, increase their productivity and improve their profitability. As a managing director, you can achieve these efficiency gains through new business models. Whether by automating processes, using technology to analyze data or implementing lean management practices, a more efficient business model can make a significant difference for your company.
#10 Globalization
Open up new markets and increase your sales through globally oriented business models
Globalization has completely changed the business world and CEOs must rise to the challenge. New business models can help you offer your products and services on an international level and open up new markets. They can also help you compete more effectively with international competitors and increase your sales. By taking your business global, you can not only maximize your growth potential, but also increase your resilience to local economic fluctuations.
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#11 Use of data
Make informed business decisions and optimize your products through data-driven business models
Data is the new gold of the 21st century. New business models that use data effectively can help you make informed business decisions, better understand your customers and optimize your products and services. This can lead to higher customer satisfaction, improved business results and a competitive advantage.
#12 Customer acquisition
Acquire new customers and strengthen your market position through customer-oriented business models.
Acquiring new customers is crucial for the growth of your company. New business models that are tailored to the needs and wishes of your target group can help you attract more customers. By offering added value and improving the customer experience, you can not only attract new customers, but also strengthen your market position.
#13 Diversification
Minimize risks and improve your business resilience through diversified business models
In an uncertain economy, new business models can play an important role in diversifying your income streams. By diversifying your business, you can reduce the risk of market fluctuations and improve your business stability. Diversification can also open up new growth opportunities and help to increase the profitability of your business.
#14 Changing legislation
Strengthen your customers' trust and secure your market position with adapted business models
The regulatory landscape is constantly changing and companies need to adapt their business models to comply with the new regulations. As a business leader, you can see adapting to new regulations as an opportunity to optimize your business model and gain a competitive advantage. Complying with regulations can boost the confidence of your customers and partners and help secure your market position.
#15 Agility
Respond quickly to market changes and seize new opportunities through agile business models
In an increasingly unpredictable and dynamic business world, agility is needed more than ever. New business models designed for agility and flexibility allow you as a business leader to react quickly to change and seize new opportunities. This can give you a competitive advantage as you are able to adapt and bring your products and services to market faster than your competitors.
#16 Partnerships and cooperations
Achieve your business goals and strengthen your company through collaborative business models
In today's interconnected world, partnerships and collaborations can offer a decisive competitive advantage. New business models can facilitate such collaborations, helping to share resources, complement skills and gain access to new markets. This can help achieve your business goals and strengthen your company.
#17 Risk management
Minimize operational risks and increase your growth potential through diversified business models
Every company is exposed to risks, whether they are of a financial, operational or strategic nature. As a managing director, you can help mitigate these risks through new business models. Whether by diversifying your revenue streams, improving your operational efficiency or strengthening your resilience to market fluctuations, new business models can be an effective way to mitigate risk while increasing your growth potential.
#18 Sustainability
Improve your brand image and increase your profitability through sustainable business models
Expectations of companies in terms of sustainability are constantly increasing. CEOs who develop new business models that focus on sustainability and social responsibility not only ensure that they comply with legal requirements, but also improve their brand image and reputation. In addition, studies show that sustainable business practices can improve long-term profitability, as they often lead to more efficient processes and lower costs.
#19 Employee motivation
Promote a positive work culture and increase productivity through innovative business models
Employees are the backbone of every company, and their motivation and satisfaction are crucial for success. New and innovative business models can help promote a positive work culture and motivate your employees. They allow employees to learn new skills, feel challenged and contribute to the development of the company. This can lead to higher productivity, lower employee turnover and better quality of work.
#20 Customer expectations
Meet higher customer expectations and create added value through customized business models
In today's customer-centric world, consumers have high expectations. They want personalized, flexible and convenient offers. New business models can fulfill these expectations and offer real added value for your customers. With customized products and services, you can not only improve customer loyalty, but also attract new customers. This leads to sustainable growth and strengthens your company's position on the market.
Conclusion
Working on new business models is an essential task for every managing director. It is not only a response to the challenges of the current business world, but also offers a wide range of opportunities to strengthen and further develop your company. The 20 reasons presented here illustrate the broad spectrum of opportunities that are opened up by redesigning your business models. It's not just about surviving in a constantly changing market, but rather about actively shaping the future of your company. See new business models as the key to sustainable growth, increasing added value and long-term success. Take advantage of the opportunities that lie in change and make your company fit for the future. Because those who are prepared to reinvent themselves time and again will secure decisive competitive advantages and actively shape the future of their company.
Ten impulses to help you improve your business model
The impulse questions listed are an excellent starting point for exploring the potential of your business model development. We offer you a free 30-minute sparring session to help you evaluate and implement this potential. In this personal meeting, we will go through the questions with you and identify promising approaches for your company. Use this opportunity to take your business model to a new level and increase your profits in the long term.
We ask the right questions
Our workshop card set includes a selection of around 50 cards with impulse questions on the topics of sustainability, digitalization, values and customer centricity, which you can use to work on new business models. You can find more impulse questions in our digitalization tool MORGEN People.
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Jonas Reuter
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20 reasons why SMEs need new business models
About us:
MORGEN is a specialized management consultancy that focuses on the development of new business models for medium-sized companies. In particular, it supports owner-managed companies in their future-proof transformation. Knowledge transfer is at the heart of its consulting activities, which is why the MORGEN Blog regularly publishes articles on key topics such as digitalization, transformation, customer centricity and sustainability.