Four steps to business model innovation
In the current era of disruption firms must be in command of cutting-edge technologies; otherwise, they face potentially mortal danger. Too often, leaders only pay attention to the technological changes at the core of their business and ignore those seemingly on the periphery. Yet far-flung innovations can be more impactful than proximate ones. This article uses the examples of Dell, Uber and Zara to illustrate four key steps to business model innovation.
- Measure risks across the entire value chain. Ask yourself: Are the risks real or artificial? How critical are the various risks? Which risks have the greatest potential for payoff if they were managed differently?
- Change risks. Decide how you want to reallocate your risk. Is your best bet changing relationships, resequencing business processes or strategically speeding them up?
- Experiment. This is the step many firms skip, to their peril. Only rigorous testing will confirm whether your value-based hypotheses were correct.
- After carefully carrying out the first three steps, roll out innovation.
Forecast of the major ERP trends in 2021
Enterprise resource planning (ERP) applications have seen a quantum leap in growth and maturity in recent years. ERP platforms and business applications solutions have evolved to support most business functions, from back-end processes like human resources to front-end functions like eCommerce. The key forecasts for 2021 include:
- AI explosion: 2021 will see an explosive growth of AI in the ERP and business applications landscape.
- Cloud acceleration: The global cloud computing market is poised to grow from $371.4 billion in 2020 to $832.1 billion by 2025. Much of that growth will gain traction in 2021, spurred on by the ripple effect of the pandemic.
- Two-tier system: Traditionally, businesses have resorted to the deployment of a single ERP system across their organisation. Two-tier ERP systems will increasingly replace the one-size-fits-all generic model.
- Data-on-the-go: In 2021 having your ERP and business applications available on a complimentary mobile application will be the norm.
Virtual learning helps close the capability gap in the time of COVID-19
McKinsey & Company
While the journey to build capabilities has only gotten harder in the remote-working world of COVID-19, the imperative to create more capable workforces has never been greater.
McKinsey research found that almost 90% of employees thought their virtual learning was equally or more effective than an in-person event – and nearly 80% built collaborative relationships with their colleagues, suggesting that those organisations that invest in high-quality virtual workshops will be more capable and resilient in the long run.