Tomorrow’s competitive advantage of companies will not be based on innovative products and processes but on innovative business models.
In sum, a business model defines who your customers are, what you are selling, how you produce your offering, and why your business is profitable. Who-what-how-why describes a business model of which the first two (who and what) address its external aspects and the second two (how and why) address its internal dimensions.
Let’s discuss Business Models revolving learning from others
Reverse Engineering — Taking lessons from competitors
Reverse Engineering business model refers to obtaining a competitor’s product, taking it apart, and analyzing its technology, functionality and input components that were used to develop the product. These learnings are then applied to build a similar or compatible product. The advantage of such imitation is being able to forego superfluous features, replace expensive materials with cheaper components, and to established successful products. Since the process of reverse engineering requires little investment in research and development, the re-engineered final products can be offered at a lower price than their market equivalents to new customer segments that could not afford the expensive original products. The primary aim is not to attain ‘first-mover advantages’, but to optimize existing products.
Reverse Innovation — Learning from good-enough solutions
Reverse innovation is the process whereby goods developed as inexpensive models to meet the needs of developing nations are then repackaged as innovative low-cost goods for Western buyers.
Trash to Cash — Turning old rubbish into new cash
The Trash to Cash Business Model is built on the idea of recycling and reusing old materials. Here, used products are collected and transformed into new products. It is based on the low or zero purchase price; accordingly, the costs of sourcing the material for a company adopting this model are usually eliminated. Trash to Cash results in a win-win situation for both the supplier and the manufacturer: for the supplier of waste products, the waste disposal cost is reduced, and the companies the following Trash to Cash business model get cheap resources with are later transformed into products.
The videos cover the business models as described in the book — Business Model Navigator: 55 Models that will revolutionize your business by Oliver Gassmann, Karolin Frankenberger and Micheela Choudury https://amzn.to/2wHKa7m
