The 9 Most Successful Business Models Of Today

what are the most successful business models of today I work with companies all across the world helping the executive teams on their strategy coaching them and our autumn work as a non-executive director for companies so my role is to challenge businesses on their business model and what I did over the last 10 15 years to really watch closely what are some of the key business trends what other key business models are really successful and I've identified nine key business models that I want to share with you the first one is that we're seeing a move to a subscription model or we see what we call servitization of industries so in the past companies would simply produce things and sell them this is a nice one of purchase if you produce cars it gives you the revenue at one point in time but if you can create a service model this is different because what you do is you create a an ongoing relationship with your customers so they usually tend to be much more loyal in the long run and you have regular revenue streams coming in and so it's smooth it's your cash flow and we've seen this with recent announcements from companies like Apple they've now moved to a subscription model pushed lots of their services so they want you obviously to pay a phone iPhone but in the future they might simply r NQ a phone ok the service here is that you have a phone because you don't really care whether you own this or not and then with this subscription you would get the latest model whenever it gets released but key service elements are Apple music are the movie streaming services and so on and we we see this that companies who have the subscription model actually get much better customer insights from their relationships with customers if you compare companies like Netflix and Disney for example both of those companies are great at producing content so they both produce films and make entertainment content the difference is that Disney has no direct access to customers they don't actually understand how many people are watching the films when do they skip what are they watching what else are they watching whereas Netflix has this relationships how has this relationship with customers where they understand exactly what you're watching they get a complete understanding of you as a consumer and therefore they understand when you're skipping which films you're watching with series you're watching in what order and therefore this gives them much more intelligence in terms of what content to produce next and this is really challenging lots of traditional businesses that have focused on producing products if you think about Gillette producing shavers they are now being challenged by the Dollar Shave Club for example that is a subscription service and what I feel is that consumers from Gillette might buy the razor thinking this is this nice it's probably one of the latest more innovative razors you can buy however with with the Dollar Shave Club company consumers are building a relationship so they have this ongoing dialogue with this organization and this I think is is what successful businesses will do in the future move from a product model to a service model the second business model is creating platforms platform businesses so these are businesses that basically create a platform that then connects consumers or consumers and businesses or businesses and businesses so if you think about what companies like Facebook are doing they are basically creating a platform for you to share information with your friends but it is consumers like us we upload content we put the likes on the content we share information and photos with each other and then we interact with each other and the only thing that Facebook does is it's creating the platform and the platform then being able to monitor this platform gives you lots of information and actually a big competitive advantage if you think about companies like BnB for example this is now a company that is valued at a huge amount of money and it doesn't own any hotels it doesn't own any any holiday let but it is creating the platform so anyone anywhere can now rent part of their house or the entire house or their hotel room out on Airbnb and what they do is they're creating the platform they're making it happen a bit like uber is another platform company that produces it creates a platform that connects drivers to people that need a ride or that want a food delivery or whatever you want and these platforms are hugely scalable so you've seen this with the growth in these companies like Airbnb and uber that are very quickly becoming global businesses because it's so easy you can simply replicate this platform anywhere in the world and this for me is another key business trend especially if you can combine some of the other trends I'm talking about here with a platform business when you bring in services and so on my third business model is actually being in a sociable and authentic business I think if we think about the past what companies didn't say we don't want you to put the company name on your Facebook account we don't want you to share information on Twitter and actually companies became these faceless organizations and what organizations what what consumers now want is that they want organizations to be real companies with real values with opinions and the most successful businesses nowadays are actually doing this right from the top so they have a CEO that is on social media that shares his or her opinions that stands up for values and I think this then filters into the organization where everyone in the business does this as well and I think this is I me as a consumer I want this I want to relate to organizations I want to stand up for the right values and I want them to support the right behaviors and companies like Apple for me great examples where the a good example was when the FBI challenged Apple said we've caught this this criminal we would like to have access to his iPhone and we would like to put some code in place so we can access information on the iPhone and Apple said actually security and data privacy is one of the biggest values we feel is really important and they actually stood up to the FBI and said no we don't we will not give you that access and this for me is really important actually their CEO actually started lots of interesting discussions on social media about data privacy and their values and what they stand for and I think this is what organizations need to do more in the future the fourth business model is where businesses really focused on employees we're now entering a new a fourth Industrial Revolution the war for talent or the competition for really talented people with good skills is increasing is heating up so what organizations need to do is they need to attract really talented people and those organizations are really employee centric what they do is they will make sure that they offer a working environment where employees feel happy they have nice offices but they also have nice organizational cultures where everyone feels comfortable where they if you think about companies like Google they have amazing buildings I have three canteens they have table tennis and and pool tables and allow employees to really feel at home the other thing that I think is happening is that if you are employee centric it also means that you can attract people into your business and you're happy for them to leave again we are now entering this geek economy where more of us basically work for a smaller amount of time for little projects for different companies offering our skills and so we have choices as employees do I want to work for this company or that company and the ones that I want to work for are the ones that allow me to come in feel comfortable and then happy for me to leave again and though is that actually while I'm there gives me some support give me some development opportunities so employee centric business models are really important the fifth one is being partner centric what you want in today's fourth Industrial Revolution is a business model that is really agile flexible that you can scale up and down and that leverages all the other companies so we need suppliers we need distributors we need people that help us in in various aspects of our business and we can also also a certain part of our business like HR like marketing like finance like social media and so on and businesses that do this really well they understand what are the core skilled I need within my business and which parts can i outsource so if you think about marketing for example I was just talking about being an authentic business you want to have more people inside your business actually being authentic doing some of the social media but other elements of your marketing be your SEO for your website nothing that you can outsource to another organization they can then do this and this allows you this flexibility and scalability to upscale and down scale whenever needed so the other thing that is happening is that lots of businesses now along the supply chain can outsource so many components I was written recently working with a an automotive company that basically is just run by a few people because they can outsource the manufacturing they can also the marketing they can outsource some of the development and actually they are building a completely new car but without employing thousands of people they are leveraging partners and this is I think the business model more organizations need to Nick law ok the business model number six is about being customer value obsessed so companies that are really thinking about how can we make the lives of our customers better how can we take some of the hassle out of their their their their lives and those are the companies that are thriving at the moment if you think about retailers a great example there are lots of even in traditional retail we have lots of frictions we have I need to drive to shop park up remember what I wanted to buy this might not be on the Shelf when I then load my trolley er then go to the checkout and have to stand and line wait and then take everything off my trolley again to have it scan put it back into my bag this is silly right so companies like Amazon have started to rethink this model and saying do we really need this or could we use technology like machine vision technology to actually monitor what you're putting into your shopping bag while you're in the shop and they use face recognition technology to recognize you as long as they recognize you and you have an account with them you simply fill up your bags and you walk out without having to stand in line at all so companies like Amazon are really I believe our customer obsessed if you think about their online shopping what they're doing is they're taking any hassle on and any difficulties out of our everyday day job like shopping I can now go into my app say I would like to get a a camera tomorrow you go numbers and you look at the reviews you buy it and they do great recommendations and they have it delivered to your door the next day so this is about businesses actually thinking how can we make this customer journey better another company I've recently done a video about which you can see on my channel is stitch fix again what they try to do is try to reimagine buying clothes so fashion retail and what they're doing is they're saying carry instead of you finding clothes we will really understand you as a consumer we know what your sizes are we will select outfits for you and send them to you and then you can try them at home and hopefully love them and keep them and if you don't like them you sent them back and we will learn from this so again making the customer journey better taking out any hassle being obsessed with creating value to customers as something organizations need to do better the business model number seven is constantly innovating businesses so this is about businesses that are looking at continues product innovations continuous service innovations and continues the improving and innovating the way they operate as a business so those businesses are not scared of any future trends they are happy to embrace and celebrate change and actually do something with those new opportunities so they they are happy to cannibalize their own products and services for better smarter more intelligent products and services and this is something I see a lot this more demand for smarter products I know one a washing machine that tells him in there something wrong I no wonder car that can avoid an accident so we won smart a product who are smarter services I want a music subscription service that that gives me a new playlist so this is what really successful companies do they innovate their business models that innovate their products their services in a way they operate on ongoing basis viii business model is being a data-driven business data has now become one one of the most valuable resources for businesses there was the famous 2017 cover of The Economist saying that data is now the most valuable resource in the world so what organizations need to do they need to be able to leverage this resource and really use it to drive their business performance so businesses that use data intelligently understand that they need to collect the right data and then use it to improve their products and services I was talking about smarter products matter services smart ways of operating and data usually is the foundation for this so you need data to understand you need data to be able to use things like artificial intelligence or all these these big trends that we're seeing at the moment will require data so really data savvy organizations data-driven organizations use data to also inform their strategic decision makings they use data to understand trends in the industry they use data to understand what their consumers and customers actually want and what they're doing and where they might be going in the future so anticipating needs I was talking about Amazon earlier Amazon is doing exactly this they're now developing an algorithm that looks at anticipating what we are going to buy in the future and they will start their logistics to ship things towards us because they are so confident that at some point in the future we will be buying this so data driven businesses are the ones that will succeed in the future and the last business model is being a tech tech savvy business of businesses that really leverage technology and use it to really drive their business forward so if you think about companies like like Apple like Amazon Microsoft Facebook some of the most valuable companies on the planet this is exactly what they're doing they using technology at the basis of lots of their improvement and the other thing is that they're combining the technology with all of the other key business model trends I talked about being customer obsessed really understanding customers creating platforms moving to a service model so organizations that do all of those together and then leverage technology are the ones that are really thriving at the moment also some of the Chinese giants like Baidu Alibaba $0.10 they are doing exactly the same they're creating the technology to allow them to collect data and share data they have the technology in place to do artificial machine learning and natural language processing they now have tools like voice and chat BOTS and and they are really levering leveraging the latest technology and and lots of my videos I talk about being at the cusp of this new fourth Industrial Revolution and and and technology is a key driver so if organizations don't export explore how things like AI blockchain virtual reality quantum computing all these major trends how they will affect their business in the future and actually trying to experiment to leverage those technologies then they will be very quickly left behind so those are my nine key business models if you want to learn more about any of them head to my channel or to my website and you will learn a lot more on Burnett model comm you can find hundreds of articles on my youtube channel you can see lots of examples of all of these lots of case studies and other videos that will hopefully support this

Channel: Bernard Marr

Views: 155,793

Rating: 4.8000002 out of 5

Keywords: #Business, #BusinessModels, #DataDriven, #Data, #DataDrivenBusiness, #BusinessSuccess, #Analytics, #Data Analytics, #DataSolutions, #Innovation, #BusinessInnovation

Id: DL6myRFdC_g

Length: 18min 32sec (1112 seconds)

Published: Tue Jul 02 2019