“Great business designs are like great product designs” - Avinash Bhandari
A great product design is a combination of superb engineering and great imagination. Similarly, a great business design is a combination of superb knowledge about customer and profits.
The business design needs to be “reinvented” as value migrates in an industry from traditional business designs and as needs and priorities of the customers change. Just as even best of the products become technologically obsolete, outstanding business designs also become economically obsolete. They do not now provide the same growth and economic profits they were designed for. They also do not now create value for the customers in the way they were originally supposed to. Higher the competition intensity in the industry, the more obsoletion will be observed as smarter competitors build newer and more relevant business designs to grab market share.
Companies and business leaders therefore should look to reinvent their business designs to continue to grow profitably and remain relevant to the customers.
Ref: “The Profit Zone” by Slywotzky & Morrison.