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Transforming Business Models

The changes being ushered in by the Accelerating Business EnvironmentTM and the attendant disruptions to entire markets and industries have contributed to the transformation of business models as well. Faced with these technologically-enabled disruptions, companies are finding it necessary to rethink the business models that may have served them well in the past. Moving forward, companies will have to reconsider entire portions of their business models as systemic change takes hold and accelerates. When this happens, transformed business models built around new value propositions, customer segments, revenue streams and core activities, among other things, will likely result.

Key Trends Include:

Transforming Customer Segments: Changes to how customers are divided into distinct segments based on common needs, behaviors and the like
Transforming Customer Relationships: Changes to the types of relationships a company establishes with its various customer segments
Transforming Channels: Changes to how a company reaches its customer segments (sales force, web sales, own stores, partner stores, wholesalers) in order to deliver value propositions
Transforming Partners: Changes to the networks of suppliers and partners that enable a business model to function
Transforming Activities: Changes to the most important things that a company does in order to make its business model work
Transforming Key Resources: Changes to the most important assets (physical, intellectual, human, financial) a company needs in order to make a business model work
Transforming Value Propositions: Changes to the products and services that create value for specific customer segment
Transforming Cost Structures: Changes to the most important costs associated with operating a business
Transforming Revenue Streams: Changes to the methods companies use (asset sales, usage fees, subscription fees, leasing, licensing) to generate cash from customer segments