Radical Business Model Transformation: Gaining the Competitive Edge in a Disruptive World

by Dr Carsten Linz, Günter Müller-Stewens, Alexander Zimmermann

Many companies are relying on a business model that is fundamentally suited to a different era. Now, organizations are under pressure from new trends such as digitization and servitization. Trying to adapt to a new environment, they risk relying on improvements that only scratch the surface of developing a radically different value proposition. Based on rigorous research into companies that have successfully and radically redesigned their business models, Radical Business Model Transformation shows why they made the leap, what they had to do to achieve it and how it has transformed the potential for their organizations.

This book is a step-by-step guide for leaders who want to seize the opportunity of new business models and gain a competitive advantage. It explains how to assess the status quo, identify the value of future business models and develop a transformation path. It also provides advice on how to involve both the leadership team and all other employees in order to implement successful business model transformation. Illustrative case studies of organizations that have crossed the line to a more transformative business range from exponential-growth companies like Netflix and global players like Xerox, SAP and Daimler to mid-sized hidden champions like Knorr-Bremse and LEGIC. Radical Business Model Transformation is essential reading for business leaders, transformation experts and MBA students interested in ensuring that their business model is future-proof and can withstand the new proliferation of innovations that are set to transform the business landscape. Online supporting resources include a business model transformation calculator to help design your transformation path.

Genres: Management

280 pages, Paperback

Published January 28, 2017

Reviews

[Andy Huette · Rating 4 out of 5]

I DID NOT READ THIS BOOK.

I did read a book with the title "Radical Business," which was self-published by a friend and therefore not available on GoodReads. So, to remember the book, as well as to recommend it, I thought I'd snag a book by a similar title.

Gary Ringger's short little book, Radical Business, was a fun tale of his "contract with God," which was to use business profits from Ringger Foods for Kingdom work. There are a lot of quippy, proverbial statements that I appreciated as he navigated the ups and downs of business decisions. In the end, the contract with God led to the creation of Lifesong for Orphans, which has helped thousands of children over the past decade. It's a quick read, a good story , and fun to hear about God's providence through Ringger Foods for Lifesong.

[Darren · Rating 5 out of 5]

Business models are everywhere, each one proclaimed as the current “best thing” that will help steer a business forward, re-evaluate its options and work towards it gaining a competitive edge. This book goes further, seeking to show that times change and many companies rely on a business model from a different era, and that a new and radical approach may be needed.

The authors have looked at hundreds of companies within different sectors who have successfully and radically changed business models, considering their motivation, implementation strategy, transformation successes and, of course, any small diversions along the road! The result is a considered textbook and benchmarking roadmap that companies can use to validate (or start) their transformative efforts. It is backed by theoretical thought and a mass of case studies from some well-known companies to add further authority and information to the mix.

A key message is that successful companies invariably had to do more than an incremental change process if they wanted to stay ahead of their competition, requiring often fundamental changes that could lead to a radical shift. Companies may know their business but they don’t necessarily know their deployed business model type and whether better, more suitable, alternatives exist. The change, itself, might not be easy but if you are aware of the need to change at least it may be manageable when you can do it on “your terms” rather than when fighting a rear-guard action whilst your business bubbles away down the drain.

Of course, nothing stands still and this book will gradually date, yet the key basic material should remain valid and provide a sufficient skeleton for your future transformative needs. A lot of material was packed into a relatively concise book, written in an accessible style that makes you want to keep reading, learning and eventually doing! Comprehensive endnotes allow the reader to investigate deeper a given point or bolster their knowledge; a great way of making the book suitable for many audiences. The case studies could be, for many, sufficient to buy the book too, if they are not necessarily involved with the company’s strategic direction.

A book worthy of closer consideration.