Advanced analytics, machine learning and artificial intelligence have all been in science fiction for years but they’re all much more available now. This is enabling new business capabilities at a breakneck speed and allowing business managers to experiment with new business models faster and more efficiently. If you’re not experimenting and proving new business models you’re going to get left behind. If you’re not seeking your future customers and what they’ll pay you for you’re going to lose out to someone who is.
Imagine having insight into what your customers think and do on a regular basis. Could you used that insight into creating new products and services that they’d love? Could you use that insight into creating new products for a market you currently don’t serve? Imagine you could run experiments and measure the results on a daily basis? You can. Your competitors are probably already experimenting with it. Its happening right now and its happening fast.
Why do business models need to change? Probably because your business model was designed for a world where competitive advantage could live on for years. Its from a era where the theory of business could live on and on. Technology has become so ubiquitous and cost effective that anyone can create a product and service and scale to compete. Imagine the next Uber or AirBnb built with cloud technologies. If the business model creates value for the customer and you can capture that value cost effectively you don’t need a huge investment to get started.
You can think of a business model in two major focuses Experiences & Optimizations. You need both to succeed. You want to create value through engaging experiences and capture as much value for yourself as you can through optimized value delivery.
Experiences – We as a society in the 21st century want more from our personal and work lives. We want richer experiences at home, on the road and at work.
Socioeconomic changes are creating new demands. The millennials are having a huge impact on society. For more information check out Goldman Sach’s research Dan Schwabel’s (Forbes) or Boston Consulting Group
Technological advancements are enabling new ways of living and working. Cognitive computing can adapt its conversation to your emotional state and deliver a higher quality of experience from where you are emotionally. Mobility allows you to accomplish more from wherever you are physically. Insights from apps and sensors allows us to make decisions faster and more accurately (machine augmented intelligence).
Optimizations – Technology is advancing and allowing higher degrees of automation delivering higher value at lower costs than ever before.
Cognitive computing, aka Smart agents can in some instances deliver a better cost proposition than having a human agent. It requires training but imagine training a single cognitive agent to handle hundreds of thousands of calls instead of having to train 100’s of people to handle the same volume. Consistency and measurability help improve the function of the service as you know exactly what the agent said and why.
Cloud and Mobile technologies are enabling experiences that were never cost feasible before. We’re able to deliver better experiences at scale with better economics.