What can you learn from the most innovative business models in recent years?

With emerging digital technologies and the adjacent options to collect data about the interactions and matchmaking transactions on a platform, the related business models are becoming highly attractive, as once setup with respective network effects, they scale fast with data and software features easing the targeted transactions on the particular platform. However, setting up such a business model needs first a selection of use cases that creates a significant momentum and initial data points that are processed into information to generate insights that fuels prediction and prescribe actions.

From the most innovative business models in recent years, you can learn the importance of vertical integration, tackling complex problems, and striving for significant, transformative improvements (10x better) rather than just incremental changes. These models demonstrate the value in controlling the entire supply chain, addressing challenging issues head-on, and aiming for substantial advancements in products or services.

Additionally, the success of the platform model hinges on building and maintaining trust among its users. This involves implementing robust security measures, transparent policies, and effective dispute resolution mechanisms. For example, Airbnb's review system enhances trust by allowing both hosts and guests to rate each other. Crucial to this model is also the ability to scale efficiently. As the platform grows, ensuring that it remains user-friendly and continues to meet the evolving needs of its users is key. This requires constant innovation and responsiveness to feedback, ensuring the platform adapts and evolves in line with user expectations and market trends.

Es un modelo muy interesante ya que permite a la empresa recibir un flujo estable y constante de ingresos escala en número de clientes de una forma orgánica. Ahora bien, no hay que olvidar que además de la captación es necesario poner esfuerzos en la retención y fidelidad de los clientes. Este modelo de negocio es muy habitual en servicios digitales que buscan ofrecer al cliente un alto valor y uso ilimitado a cambio de una facturación recurrente.

Moreover, in the subscription model, customer engagement and experience are paramount. Successful subscription businesses often use data analytics to understand customer preferences and tailor their offerings accordingly. For instance, Netflix's recommendation algorithm personalizes viewing experiences, enhancing customer satisfaction and stickiness. Additionally, flexibility in subscription terms can be a key differentiator. Offering various tiers of service, easy upgrade or downgrade options, and hassle-free cancellation policies can significantly improve customer loyalty and reduce churn. This model is not just about selling a product or service; it's about building a continuous relationship with the customer

In the freemium model, the key is to strike a delicate balance between what’s offered for free and what’s behind a paywall. The free version must provide enough value to attract and retain users, while the premium version should offer compelling additional benefits. For instance, LinkedIn provides basic networking features for free, but its premium subscriptions offer advanced tools for recruiters and job seekers. Additionally, customer feedback is crucial in the freemium model to continually refine and enhance the value proposition. Engaging with your user base to understand their needs and usage patterns can provide insights into which features should remain free and which could be monetized,

La idea es muy atractiva, ya que se trata de probar funcionalidades gratuitas (free) que logran aumentar la amplitud de nuestro funnel de marketing para tratar de convertir los clientes gratuitos en clientes de pago (premium) a través de acciones dirigidas a ese target que ya usa nuestros servicios y sabe de su calidad. Muchas empresas usan este modelo, como Spotify o Canva, entre otras

Validating new business value propositions in emerging markets accelerates adoption. New business value, addressing un-met business problems are showcased. Essential for early stage, difficult for an enterprise where institutionalized thinking and well established organizational structures makes "getting outside the box" difficult to impossible. We supply fresh innovation to hundreds of companies who ask us to help them address specific business issues where innovation, in market and generating revenue, is required. The majority of innovative technology companies adopt this model to disrupt markets by solving unmet business challenges and providing new and differentiated business value.

Expanding on the reverse innovation model, it's vital to foster deep understanding and collaboration with local markets. This involves not just market research, but immersion and engagement with local cultures, needs, and ecosystems. For example, GE Healthcare's success with its portable, low-cost ECG machine in India stemmed from an intimate understanding of the local healthcare challenges. Moreover, this model often requires agile and flexible operations to adapt quickly to diverse market dynamics. The key to scaling reverse innovations lies in the ability to modify these solutions for broader, often more affluent markets, while retaining their core value proposition. This approach can lead to groundbreaking innovations that disrupt

Cada vez más, los clientes están alineados con criterios de sostenibilidad y esto les lleva a consumir productos de empresas que están comprometidas con la circularidad en sus operaciones. Un ejemplo es el que estamos viviendo en el mundo de la moda y la industria textil, donde compañías como Zara están lanzando sus propios servicios de ropa de segunda mano (pre owned) e incluso facilita la donación de ropa. Claramente, las marcas tratan de navegar en una tendencia que se ha convertido en mainstream y que conecta cliente y marca a través de los valores.

Embracing a circular economy model also involves educating and engaging customers in sustainable practices. Companies like Patagonia not only redesign products for durability and recyclability but also actively promote a culture of 'reuse and repair' among their customers. This approach transforms customers into active participants in the circular economy, deepening brand loyalty. Additionally, leveraging technology, such as AI and IoT, can optimize resource use and enhance circular processes. For instance, IKEA uses technology to improve its supply chain sustainability and product lifecycle. Adopting this model requires a holistic view, seeing products and services not as end points, but as part of a continuous cycle

Los modelos de negocio pueden suponer una innovación mayor que la de los propios productos y servicios que se comercializan. Distintos sectores han vivido la disrupción con modelos de negocio innovadores, tales como el del alojamiento con modelos de plataforma, o la de la música con los modelos de suscripción y freemiun.

It's not a new lesson, but IMO the biggest take-away from what recent business model has been the most successful is the importance of designing your business around customer preferences. Nowhere is this seen more than in the subscription and freemium models IMPO ever since the Great Recession of 2007/8 shattered disposable income, there seems to be an increase in consumer's emphasis on cost-consciousness, value for money and affordability. History has showed that the successful models are those that are based on pricing structures aimed at bringing in as many people as possible "Give people what they ask for" is a basic business lesson. A look at what has worked just reinforces this message

Innovative business models share a common thread: data-driven leadership. Innovators leverage insights to anticipate market shifts, identify trends, and stay steps ahead. Linking data to strategy is the secret sauce. Data-driven leadership isn't exclusive to tech giants. Any business can harness the power of analytics. It's about democratizing data, empowering every team member to contribute to informed decision-making. Why Data-Driven? 1) Replace gut feelings with data-backed decisions for precision and reliability. 2) Data enables quick pivots and adaptability. 3) Streamline operations and resource allocation based on real-time insights. 4) Anticipate customer needs and deliver tailored experiences for loyalty. 5) And much more!