Blog Layout
Crisis-Driven Business Model Innovation
David Nimmo • Mar 31, 2020
Innovation in a time of crisis
2020 will be forever remembered as the year of the Coronavirus. Despite the global climate change impacts which made themselves felt only slightly earlier in the year, none had the sudden and drastic impact on society, commerce, governments and travel that were imposed by this new and seemingly unstoppable virus.
As governments around the world sent businesses and individuals into lockdown, life as we have come to know it has seemingly been brought to a sudden halt.
In the midst of this upheaval, however, some amazing adaptations
have already begun to emerge:
- James Dyson, of Dyson vacuum fame, has suddenly entered the ventilator manufacturing business (1)
- Telemedicine is rapidly entering the mainstream, with government support (2)
- Government schooling at all levels is rapidly transitioning to online and remote modes (3)
- Demand for home delivery services is skyrocketing as people are encouraged to stay at home and avoid social contact (4)
- Many workplaces are encouraging work-from-home as an approach to keep business running, where it is practical to do so
- Museums are offering up virtual tours in place of physical visits to their now shuttered facilities (5)
- Real Estate agents are moving to conduct virtual auctions to keep house sales happening (6)
These innovations all represent significant changes to one aspect or another of the respective industry’s business model. The Business Model Canvas, shown here, is a simple, rapid and very effective tool we use to depict, critique and innovate on your current business model. The concepts shown here are the components businesses change when they want to innovate, to avoid threats, and to captialise on opportunities.
Businesses are taking a number of approaches including:
Download Pdf Version of this Article
- devising new ways (channels) to deliver existing value propositions to existing clients (eg remote teaching and telemedicine);
- entering new markets, with new value propositions, drawing on existing resources (eg Dyson)
As occurred in previous global crises, such as the Global Financial Crisis, it is also anticipated that a number of new business ventures will emerge, their founders spurred on by the necessity for innovation created at this time.
As a business owner or entrepreneur, the current circumstances may pose both an existential threat (consider many restaurants, airlines, events organisers), but also present an opportunity to not only survive, but to thrive as you identify and serve the greatest needs of your current and prospective customers.
Actions:
Consider the Business Model Canvas
– look at where your business is being challenged (eg some channels such as large gatherings of people are at least temporarily out of bounds) and consider alternative options available to you.
Consider how you can help
– look for opportunities to support governments, care providers and individuals through this crisis. Like James Dyson, can you use existing skills and resources to create new value that can directly contribute to alleviating suffering right now?
If we can help you work through the challenges and opportunities your business is facing right now, don’t hesitate to get in touch.
References:
1: https://edition.cnn.com/2020/03/26/tech/dyson-ventilators-coronavirus/index.html
2: https://www.health.gov.au/resources/publications/covid-19-national-health-plan-primary-care-bulk-billed-mbs-telehealth-services
3: https://www.canberratimes.com.au/story/6691147/act-schools-to-effectively-close-and-move-to-online-learning/
4: https://www.abc.net.au/news/2020-03-25/wollongong-food-suppliers-band-together-covid-19/12085878
5: https://www.mentalfloss.com/article/75809/12-world-class-museums-you-can-visit-online
6: https://www.abc.net.au/news/2020-03-28/coronavirus-restrictions-canberra-open-homes-auctions-online/12099634