Transforming your business model can be a challenge without examples. You may need a little direction and to learn where to begin. The business model transformation examples listed here can help you to transform your business model — feel free to take these examples and use them as a framework to guide your own business’s transformation.
What Is Business Model Transformation?
“Business model transformation” is a blanket term that is used to describe the change in culture, operations, digital, and marketing. It’s a term used to describe the evolution of a business that takes place to keep up with market demand. As the market changes, business models have to change with it.
The risk of not transforming a business model is clear. If the business can’t transform to keep up with market changes, then the business will likely not succeed. The scope of these transformations can be broad. These business model transformation examples can help to narrow down the changes that need to be made in your business.
Digital Research
One of the best business transformation examples is steeped in the digital realm. As consumers and businesses turn more to the digital world first, it’s important that companies can keep up. Industry research consulting services can help your business to keep up with the trends.
This type of consulting service monitors trends in specific industries to let you know where to put your marketing efforts, how to reach your audience, the demographics of your audience, and much more. There are many consulting firms that provide these services that are reliable, and that can customize research to your specific needs.
A good example of the power of this transformation is how a recent election was won. A deep dive into digital habits helped a candidate take the helm. Before 2008, it was unheard of to campaign online. However, because of digital consultancy, social media and other online platforms became very powerful tools in the campaign process. Why? It’s because the research showed that you could find the largest swath of target audience members there.
If your current business model doesn’t utilize digital consultancy, it should. Archaic methods of researching your market are outdated and often return unusable data.
Digital Management
Business model transformation examples are abundant when it comes to member account management software. The digital realm in business is chockful of risks and rewards. Member management software can help to reduce risk and enhance rewards. The next example is a bit long-winded but it’s a very good example of what you can do with this type of transformation.
American Airlines, recognized there was a need to create member software for their loyal members. This airline likely used digital research consultancy to learn more about their customer’s habits before embarking on this transformation. The agent-on-demand software suite available to AA customers makes it easy for customers to engage with agents via a live chat feature. This software allows members to speak with a live agent about any concerns they have. If the customer prefers, they can switch to video chat at any point in the conversation. The software was launched during the aftermath of the COVID-19 pandemic when travel resumed but many people were still working from home. It has made it easier for customers of the airlines to reach an agent, interact with an agent, make travel plans on the go, and provided the digital flexibility that consumers are demanding.
Launching member software for your business can encourage consumer loyalty. It can also make it a lot easier to create a remote workforce.
Jobs That Are Streamlined by Digital Tools
Digital tools are making everyone’s job easier. There is a wide range of business model transformation examples that provide evidence that digital tools are making the workplace more productive across a wide range of industries. For example, cloud based construction software is allowing people in the field to have access to important documents that they would normally have to run back to the office to get. Permits, plans, and more can all be accessed from a range of digital devices right on site.
A commercial fencing company can use cloud-based tools to order supplies right from the job site. Work orders can seamlessly be generated on-site by a host of service providers that are connected via cloud services. Cloud services with remote access go with you wherever you go.
A waste management service can use this type of digital tool to check route times and more. Digital tools are changing how the world does business. After the pandemic, many employers kept their workers remote. Cloud services allow employers to cut back on overhead costs by keeping the majority of their workforce remote. If you have yet to transform into using cloud-based digital tools, this is a transformation you should implement.
In today’s world, you have to be able to access information quickly and provide answers. Consumers demand instant service. Cloud-based digital tools can ensure that you can meet those demands. They save time, and they save money. Learn more about the tools that can help you improve workflow, stay connected, and improve your business.
Jobs That Now Require Digital Tools
The days are almost completely gone when you could get by without digital tools. As a matter of fact, some experts believe that you cannot perform any type of job in any industry without having digital tools on board. These business model transformation examples will drive home how important it is for every business across every industry to have the right digital tools.
The first of the business model transformation examples that will drive home the point that some industries just cannot do without digital tools. It is no surprise that commercial metal fabrication services are highly reliant on digital tools. When precision is a must, there is no better way to ensure precision than with digital tools. A well-known sheet metal fabricator in Michigan upgraded all of the business’s digital tools in 2020 and saw an increase of about 22% in revenues the following year. When you can provide reliable service it helps to grow your business.
Another of the business model transformation example of businesses that just could not exist without digital tools is well drilling businesses. At one point in time, these businesses relied on experience to locate the best place to drill for water. Today they rely on digital tools and technology. In the past, a lot of time and effort was wasted looking for places to drill. Today the time it takes to find the ideal place to drill takes about an hour and has an 87% success rate thanks to digital tools.
One of the final business model transformation examples of an industry that could not function without digital tools is the precision piping products industry. Precision can be difficult without digital tools. Human error is always a risk factor unless you take the human out of the equation. Digital tools do just that in the piping industry. Errors are cut to below a 2% risk thanks to these tools.
The Home Improvement Sector Benefits Significantly
A conversation about business model transformations with digital tools wouldn’t be complete unless we addressed the significant changes these transformations have had on the home improvement industry. Business model transformation examples of what digital tools can do for your business include examples of custom home builders that have sped up the process of home design and building by changing their business model to include digital tools.
H&R Homes, a custom builder out of Maryland, went through a business model transformation stage in 2018. Before the transformation, the builder depended solely on premade designs. After the transformation, the builder launched an in-house design service. The in-house design service was an added benefit of doing business with the builder. The designers would meet with potential clients and use digital tools to “sell” them on a new site built home.
Business improved by 17% after launching the in-house design team services. It also raised satisfaction among clients. A recent survey of client satisfaction with the services, reports that 97% of clients reported they were completely satisfied with the services.
Another one of the business model transformation examples that shows how the home improvement sector has greatly benefited from digital tools is Costless Concrete. This concrete contractor deployed digital tools pretty early on to improve production and accuracy. However, in 2019, the company revisited the tools they were using and decided that they needed to audit their tools. They upgraded their tools and were able to improve production and accuracy, and cut down on waste.
Your business model transformation that includes adding digital tools can do the same for your business even if you aren’t in the home improvement sector. This is a transformation that every business should be considering.
Digital Tools and Automation
Business model transformation examples of how digital tools are helping businesses to automate many of their services are ample. Automating everything from patient check-in at the doctor’s office to ordering products is helping business owners just like yourself provide better service, cut costs, and improve business management.
Automation tools can help to reduce the number of labor hours of current employees and reduce the need for additional staffing. These tools can improve every type of business. Here are three business model transformation examples.
Dr. P (not the real physician’s name) was having trouble with cancellations and no-shows. The office staff was not able to call patients with reminders, and patients were often not calling to cancel because they were forgetting that they had an appointment. Dr. P consulted with a digital consultancy firm to find out why there were so many no-shows. The firm found that in about 67% of the cases of a now show it was because the patient forgot they had an appointment. Dr. P deployed an automatic appointment setting patient management tool. He was able to reduce his no-shows and cancellations significantly.
Another example of automation success is when a gym in Nevada deployed a gym management software system that allowed members to sign up for classes, pay for their membership, and manage their own accounts. It reduced staffing needs, made it easy for members to pay their membership fees and the gym owner even reported an uptick in class enrollments.
If you make it easier for customers and clients to manage their business with you, you are taking some of the workload off your business, and providing customers and clients with easy access to your business. These powerful tools shift some of the responsibility from the business to the consumer. Most consumers expect that a business will have an app or some sort of digital tool available to help them navigate the business.
Start Your Transformation
These business model transformation examples should motivate you to take the first steps of transforming the digital end of your business model. Your first step in the process is to evaluate or audit the processes you have in place and look for ways to make improvements. If you need to consult with an expert in the digital consultancy field that can make suggestions.
If your business model needs to be adjusted to fit into today’s market, you do not want to wait too long to take action or your business may be left behind. Get started today by using these business model transformation examples to brainstorm what changes you can make.
