The following questions, based on BCG research into the characteristics of robust, resilient business models, can help you navigate this part of the process:
- Can the business model scale effectively? Can it be replicated across all your business units or the markets you serve, without diminishing returns?
- Will the business model differentiate your brand or product and make it more competitive in the marketplace?
- Will it reduce the risk of commoditization, by being hard for others to imitate? Will its distinctiveness help you retain some control over pricing?
- Can it leverage network effects? For example, can it attract the kinds of customers and suppliers that make other customers feel compelled to join?
- Does the business model harness business ecosystems—including the larger industry, the value chain, and everyone who interacts with your products, services, and practices—for advantage and sustainability?
- Does the business model naturally create meaningful environmental and societal benefits?
- Will the environmental and societal benefits remain durable against changing trends over time, even as the business model scales up?
- Does the business model increase returns to shareholders as well? Are the financial benefits linked to the environmental and societal benefits in some significant way?
- Finally, does the model animate your company’s purpose? Does it boost engagement and loyalty between the company and its employees, customers, investors, and other stakeholders?
Authors: David Young, Marine Gerard
Source: Four Steps to Sustainable Business Model Innovation
Subject: Strategy Questions
Source: Four Steps to Sustainable Business Model Innovation
Subject: Strategy Questions
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