Adding Value For Customers Is A Place Where Few Search For Business Model Improvements

Business.

Value: locate ideas to create more sales from improved value at the current price - people go through four stages before any revolutionary development: it' s nonsense, don' t waste my time. I always said it was a good idea.

It' s interesting, but not important. - i thought of it first. - - arthur c. Give customers something they value more than the competition offers at the same price, and your business grows faster. Clarke. Repeat this well enough, and the entire industry' s growth rate expands. After a decade of applying this approach, your position will be virtually unassailable and the helpful habits well ingrained.

Add new forms of value on top of the ones that caused you to grow faster than competitors in the first place, and you will build one arm of the beginnings of a sustainable competitive advantage. - despite these significant, few companies focus, potential advantages on outperforming in providing new forms of value and greater amounts of continuing value at current price levels. How many good ideas have you been exposed to that your organization still doesn' t use? Business concepts are only as good as the amount that you can apply them to your own situation. Business model innovation is too important to suffer that fate, so let' s begin our exploration of business model innovation secrets with looking at how organizations learn to be outstanding in this activity. Ask most people to think about what a better business model would look like, and they draw an initial blank. If you already had a good idea for an improved business model, you would probably already be using that model.

The equally blank stare you receive is all the evidence that you need that the business model innovation slate is empty now. - simplify the task at first. So how do you move beyond what you know to create new ideas that can help you generate better business models? While most minds boggle at coming up with new business models, almost everyone can provide valuable observations and ideas that can be used as ingredients for better business models. Like a combination used to open a safe, tasks work well when undertaken in the correct order and will not help in any other order. But the order of these simpler tasks is of critical importance.

Otherwise, you can spend endless amounts of time working very hard, and never adding a successful new business model. - think about the last time you unsuccessfully looked for a misplaced object. The secret is in following the right order. What did you do? If you didn' t find it there the first time, is it likely to be there the second time? Chances are, you kept reexamining the same places.

Or the third? - adding value for customers is a place where few search for business model improvements. Drawing on that experience, you will find that your odds of success are increased if you begin by looking in places where you have not yet searched. Why? If neither outcome is likely to occur, few continue to look at choices. The search for improved value is almost always tied to either justifying a higher price or a higher profit margin as a result.

Because this dimension of creating the ultimate competitive advantage is rarely explored, you will also find that peoples' minds are not clouded with negative thinking. - remove those limitations, and ideas should be immediately forthcoming that have been considered and rejected before for these same limiting reasons. They don' t know any reason not to do these things, except that you cannot get a higher price or higher profit margin for them. So, most people will find something already in their memories when asked this question. Skipping improvements that don' t create higher prices or higher profit margins is a mistake for another reason. That gets the ball rolling. Many people who haven' t started using your products don' t think your value is good enough yet.

If adding value for customers and potential customers is not thoroughly considered, you can imagine how much less well examined is the opportunity to add value for customers' customers. - by looking at only your current customers, you are missing the larger number of people who could be encouraged to buy. Some may draw a blank in this area. What problems do they have? A good way to stimulate ideas is to spend time with customers' customers, observing how they use your company' s and your customer' s offerings. What is most important in their minds now?

Take that fundamental evaluation one step further back, and look at customers' customers' customers, and there is only the most remote likelihood that much thinking and testing has been occurring. - what opportunities are they missing? Go to the final dimension of this perspective and look at all the even further - out dimensions of those who are indirectly using your offerings through intermediary customers, and you can see that only a tiny portion of the value - adding opportunity has ever been considered in your company. Look for as many ways as you can to add more value in traditional and nontraditional ways at current costs as your first task. How do we break out of this mental harness as easily and as profitably as possible? Treat all of the ideas initially as being potentially valuable for the purposes of this task. Your subconscious mind will be paying attention to those questions.

Although you will not be focusing on ways to add value with higher and lower costs, you will get a surprising side benefit. - you will find the novelty of focusing on adding more benefit at no more cost however to be an interesting, self - confidence - building activity. That' s a good state of mind for opening up the positive emotions that allow your mind to do its best creative business model innovation work. Every idea you come up with will make you feel creative, diligent, intelligent, worthy, and competent. Do this thinking in a brainstorming session with people who have many different kinds of backgrounds and experiences, and you will stimulate one another to do even better. In suggesting the approaches that follow, you should be aware that any other creative process that helps you should be used as well. Your efforts should yield many new kinds of choices, some of which can be parts of the foundations of improved business models.