The world is changing fast, especially in the business environment. The way businesses operate, interact with customers, improve processes or even the business model on which they are built – they are all in the process of rapid change.
However, many businesses are not following the changing trend and more are operating on outdated business models.
If you are leading a business – small or large, a start-up company or a business that has a foothold in the market – you still need to understand the latest business models in the current market. and evaluate how they can be applied to your company. Let’s take a look:
READ ALSO : FACEBOOK: How To Make Money on Facebook
1. The business model of subscription form (subscription)
Instead of selling a product or service package at a time, service companies operate under a subscription model, which builds a deeper understanding of customers in the process. Buy and use the service. For example, compare the content creators of Disney and Netflix. For Disney, they produced a movie, released it in the cinema, and then they learned the film: 1 is a profit success, 2 is the opposite. They don’t need to know exactly how much the audience likes the movie.
On the other hand, Netflix has a very close relationship with customers. They know exactly how many users have watched a movie or series (many episodes), they know whether their customers’ behavior is watching the whole movie or watching it halfway and then moving to another one, or is that they continue to watch more movies with the same actions of a certain actor.
2. A business model based on the platform (platform)
This model has a close association and subscription model, which proves that the platforms are particularly strong when combined with the subscription model. Popular examples of this model include Facebook, Google. As you can guess, platforms provide an operating mechanism or a network (be it offline or online) – for parties to interact with each other.
The platform brings value to users by facilitating direct connection and communication between people (the more valuable the network is to the users, the more successful it will be).
3. The business model focuses on social interaction
The traditional business model of companies, with a hierarchy of responsibilities and countless press conferences, is slowly being transformed. Today, customers want to see the team behind the brand they use; they want to be truly connected with a business.
You probably remember the business you worked for or more or less restricting employees from discussing the company outside of working hours or expressing your personal views about the company. This is an outdated imposition.
Today businesses need to actively share information with the public, receiving comments both inside and outside the business. Besides the social activities of CEOs, employees must be encouraged to become brand ambassadors for their businesses. And most importantly, a business brand needs a lively and engaging social media presence, with a message that communicates appropriately and truly connects to the target audience.
4. Employee-centric business model
People tend to change more in their jobs, and good employees are less likely to stay “forever” in a company. To be successful, companies still need great people, but the way businesses use to attract them is changing. The Gig Economy plays a huge role in this transition, as it gives businesses the means to create a great team in many different ways – no longer just is the traditional way: “full-time employee”. Therefore, businesses are increasingly comfortable in recruiting and retaining employees.
This model also means giving people a really attractive place to work, be flexible, have space and a means to develop their careers. Google is a prime example of such a business.
5. Partner-centric business model
Currently, businesses are also focusing on connecting networks of partners in business more: outsourcing work, exploiting on-demand services, working closely with suppliers, hiring domestic experts. set when needed. They create attractive partnership networks – bringing equal value to share, creating needed common interests. Looking at SMEs currently on the market, you will see examples of this business model.
For example, A business can outsource a team to build and manage their social media channels, partner with a Web design company to build a website, bring a brand consultant, work with the Training partners to train skills for the team, …
6. Business model focusing on customer value
This model must be applied to all businesses because its goal is to solve all customer problems, anticipate their needs, eliminate any hassle in the buying process and use the service from there to help increase the customer experience.
Stitch Fix’s online registration service is a clear example of this, where users can customize their size and style by filling out a questionnaire (they can also link to Pinterest account). Then, using artificial intelligence (AI), the system will choose the right and suitable clothing (pre-select), the next step is a stylist (human) will choose the option Choose the best one from the previously selected list. And voila, the perfect outfit will be delivered to your home monthly. No more crowded shopping in crowded shopping malls, queuing up to try on clothes or shopping online with inappropriate clothes.
7. Sustainable innovation business model (constant-innovation)
The ability to innovate is critical to a successful business. The most successful businesses in the world are constantly innovating and transforming, even if it means eliminating the products and services they are trading to create something new.
Take for example the Apple iPod. By introducing smartphones that contain and listen to music, Apple has eliminated the need for a separate device. Undoubtedly the loyal fans of the iPod product have also noticed a decline in sales of the product since the launch of the iPhone.
8. Data-driven business model
Developers realize that data is one of the most important business assets, and they are more encouraged to adopt a data culture where data is important. be recognized at all levels of the business, and company-wide decisions are based solely on data, without assumption.
Businesses that operate on a data-based business model also need to have good measures and processes to handle data, thereby obtaining information to make better decisions, refining internal activities. to optimize business operations, even create new revenue streams.
9. Technology Development Model
We live in an age of technological innovation. AI, big data, blockchain, 3D printing, augmented reality and virtual reality are just some of the big changes taking place. So it’s no surprise that the most successful corporations in the world are in technology. Apple, Alphabet (Google’s parent company), Microsoft, Amazon, and Facebook, up to now these are among the top 6 most valuable companies in the world;
Regardless of your industry or business size, missing out on the technology in business operations and development can increase your risk of being left behind in the market.
Job Vacancies in Nigeria
- National Agency for the Control of AIDS NACA Recruitment 2021 for Finance Officer
- Massive recruitment at Achievers University for Academic and Non-Academic Staff ( 106 Slots )
- UNICEF Recruitment 2021 for Graduates in Nigeria (September)
- Ends Soon : Greenwich Merchant Bank (GMB) Graduate Trainee Program (GGTP4.0) 2021
- Current Job Vacancies at Wateraid Nigeria
- Massive Recruitment in an Indigenous Non-profit and Non-governmental Organization
- Nationwide Massive Recruitment for Relationship Officers at United Bank for Africa Plc (UBA)