When discussing innovation, most people focus on product innovation. This isn't a bad thing, but many different types of innovation are key to your company's success.
Jeremiah Owyang, the founder of the Crowd Companies Council, discusses the four types of innovation as product innovation, operational innovation, customer experience innovation, and business model innovation. It is the latter category I want to discuss briefly here today.
Business model innovation is what I am most familiar with because it's how WeGoLook's crowd-sourcing model is changing the traditional supply chain process and workflow.
According to Mr. Owyang, whom I admire greatly, business model innovation is where "companies identify complete new revenue streams from existing core capabilities."
For instance, the example is given of BMW launching a new program that allows its customer to rent BMW vehicles on-demand as opposed to purchasing them outright. In this sense, core services are delivered in new ways to meet consumer expectations.
Business Model Innovation - Why it's important
Entrepreneurs work hard to create amazing products and services. The way they connect with customers and supply-chain partners is of the utmost importance. Business model innovation is vital to organizational success, and it's just as important as product R&D or providing a seamless customer experience.
Business model innovators don't simply settle for marketing and selling their products to target audiences. Instead, they perform in-depth research into the factors that make their product-delivery methodologies succeed or fail. Business model innovation is essentially the process of obtaining these insights and applying them to the implementation of revenue-optimized business practices.
Refining one's business strategy has many potential advantages. For instance, companies may benefit from access to novel revenue streams without expanding their resource usage. In many cases, they're empowered to provide their customers with a higher quality of service, increase profit margins, or facilitate long-term growth.
Business Model Innovation: The crowd-based supply chain
Business model innovation is the mainstay of the new collaborative economy. Companies are finding amazing new ways to deliver services. Think how Airbnb has changed the traditional hotel business model, or Uber for that of the taxi industry.
To get an idea of this expansive success in business model innovation, one only needs to look at Mr. Owyang’s collaborative economy honeycomb:
One noteworthy business model innovation involves implementing a crowd-based supply chain. This is where WeGoLook stands out, rather than being just another staffing company.
By employing workers sourced from the crowd, WeGoLook has heightened business market efficiency in areas such as vehicle inspections, delivery, risk management, and now even B2B services.
Crowdsourced supply chain improvements help companies adapt to the ever-growing collaborative economy and create more robust business models. In addition to being able to source competitive services, firms that use this plug-and-play approach gain the ability to provision a range of services that supplement their products and offerings.
Companies like Uber, WeGoLook, and Airbnb also demonstrate how crowd-based supply chains contribute to positive PR. These companies cultivate widespread rapport because they can market their employment opportunities to increasingly diverse workforces and provide wealth to the communities they operate in.
WeGoLook: Business model innovation through crowd-based supply chain models
Business model innovation isn't always simple. Fortunately, firms like mine are increasing the ease with which other businesses can leverage the crowd in any given supply chain.
Instead of retrofitting existing infrastructures to accommodate new workforce management techniques, companies can now create custom tasks and use collaborative economy platforms to assign crowdsourced agents to their completion. This makes it infinitely simpler to connect to on-demand workers of various skill levels and integrate the unique business practices found within the sharing economy.
As you can see, there are endless ways to innovate and improve on existing business models. But, in the age of crowdsourcing and the sharing economy, on-demand workers are the most promising business model innovation.