The term “Service economy” has changed the mindsets of companies’ strategic thinking in the 21st century. It reflects from the fact that in industrialized economies, manufacturers are focusing more and more on add-on services when trying to defend their business against the continuously growing service sector. Market is a battlefield and new challengers are entering from every corner.
Markets are changing rapidly and constantly forcing companies to challenge their existing business models. Today many of the startup companies are founded on the basis of innovative service concepts, aiming to create their own market and challenge the structures of traditional business competition. This blog post focuses on providing a strategic roadmap to startups on their journey to become a forerunner in service business. Continue reading →
“If you are not thinking about business models, you are an irresponsible leader.”
Co-author of Business Model Generation (Osterwalder & Pigneur, 2010) Alexander Osterwalder challenged Finnish business experts in Business Model Innovation Seminar in Helsinki 6th of November 2012. He stated business models makes organizations thrive or die.
“We will have more industries where companies compete with different business models, but with exactly same products”, and continued: “Nowadays we compete with our business models.”
From Nintendo Wii to Nespresso , Alexander Osterwalder proved his case. “A better business model almost always outcomes a better technology.” he pointed out, and also added in the case of Nespresso: “Business models also expire”. Continue reading →
We know your job as an executive is getting tougher and tougher no matter in what business you´re in. Operating environment is getting more and more competitive, fast based, complex, turbulent and blurry. You have probably noticed that the “old” way of thinking about the strategy and competitiveness won´t guarantee your organization´s success anymore. Strategy can´t no longer be done as a periodic planning exercise conducted in your organizations boardroom behind locked doors; planning for half a year, implementing for 3-5 years and then evaluating the strategy and building a new one – there is no time!
Say hello to agile strategic thinking! Through it, your organization is able to make fast turns and to transform itself without losing momentum. And we don´t mean simply adjusting to change, but thriving on the waves of change and becoming number one. Continue reading →
It is widely acknowledged, that services will gain ground from the traditional manufacturing and product-based approaches. As a part of this change, it has been recognized that market value is equally important focus point for the operations of a company as revenues and profits. Intangible assets such as knowledge, customer relationships and employee alignment are valued as much if not more than hard assets. These intangible assets contribute to the overall value and competitiveness of the company and are considered as facilitators to success.
In a report by Tekes, “The Future of Service Business Innovation”, the core competencies required for driving the service innovation of the future have been described in a clear manner. They are called as the “Forerunner Attributes”. In order to survive in the future and to create significant growth, companies will need to change their way of thinking. The key lies within design principles for creating and delivering new value. It is a completely different mindset that encourages engaging with customers in ways that expand the definition of value. Ongoing interactions, collaboration and co-creation are all examples of the tools that a Forerunner company would use. Continue reading →