How Business Models Are Evolving in 2024
New shifts in technology are constantly changing the landscape for small businesses, helping yours stay ahead of the pack if you know in what direction it’s trending and try to get there before your competitors.
Digital transformation goes way beyond introducing technology into the way we operate; it requires an organisational climate that supports hyper-innovation. Learn how to wield its transformative powers.
Data-driven business models
This type of business model, centered on data collection from users all over the spectrum, involves packaging and providing the user data as a service – either to comparison websites (such as CHECK24) or Idealo or even streaming services (such as Netflix). These models are upending decades-old business relationships and provide opportunities to adapt. Businesses can leverage technological advances in predictive intelligence to not only create strong internal cohesion in operations, but to create bespoke offerings for their customers, enhancing levels of engagement and customer loyalty. There will likely be hurdles along the way. If businesses want to stay ahead of these trends or at least not get completely left behind, they need to identify them and address them while they can. Our new whitepaper ‘The Data Deluge – How to Make Better Decisions in 2024’ covers some of these hurdles. Get your free copy here today!
Digital ecosystems
Digital ecosystems lock together multiple goods to offer an ‘end-to-end’ experience – such as the range of speakers and digital assistants that Amazon’s Alexa ecosystem lays out for its customers, and then ties them to additional services (microwaves! lawnmowers!) through a series of partners. And a successful digital ecosystem requires a good (that is, comprehensive and stable), (that is, all seeing eye to each other), and (that is, full of powerful and efficient technologies to be interconnected) of partners. By using the data in a creative new way, the business could then look at selling it on. This is how, for example, the American farming-equipment maker John Deere has started selling the data harvested by its sensor-laden farm machinery to the farmers who use the machinery, so that they can aggregate it to find better ways to run their farms.
Subscription models
Subscription models have transformed entire industries by changing how customers gain access to products and content. From meal kits to streaming content, subscription services enable customers to have more choice, convenience and community, all while becoming richly profitable business models. Subscription business models are easier to predict because customers pay in an installment arrangement on a periodic basis, which enables companies to gauge and track important business metrics. Subscription models also help minimise churn, since customers stay with your product or service as long as they have the right level of participation in the associated community. However, the selection of the optimal subscription model isn’t a one-time decision; delivering Subscribed makes businesses continuously apply PDCA to their product against changing customer requirements, and set up feedback loops in order to get customer input on a regular basis.
Hybrid models
In the aftermath of the pandemic, numerous companies experimented with hybrid work models involving both in-person collaboration and remote work – allowing for employees to feel a greater sense of connection and productivity when working virtually, while also retaining flexibility and autonomy. As always, clear communication protocols and work environments built around trust are key to success, but tools that promote collaboration and asynchronicity are also important. There are also legal and HR considerations ahead of time. If the right technology and policies are in place for hybrid models, this transition can be transformative for your business. Get in touch with Kefi Spaces to understand how we can help your business evolve as we step into this new era of work.
Artificial intelligence
However, businesses are now more and more turning to AI for automation and productivity gains, increasingly eliminating human error and giving employees time to focus on more creative and productive projects. Because AI can perform dangerous or complicated tasks, all the while protecting humans from either radiation or the need to conduct complicated analysis of patient records, it appears especially suited for undertakings in which identifying patterns based on large pools of data is required. Almost everyone knows what artificial intelligence looks like. Facial-recognition, digital assistants – we encounter some form of AI every day, oftentimes in our own homes. However, the majority of these implementations are simple systems able to do little more than play chess or translate text – far removed from more advanced AI whose models provide explanations and account for their choices.
