What’s wrong with your business model?

Wednesday, April 14, 2010 | Posted by: Fiona Cullinan
Categories: Business advice, Thought Leadership | Tags: innovation, business, entrepreneurs, recession, finance, research, technology, strategy, business models, New Business Models, competition, Economist, board, distribution, revenue, change

Nearly two-thirds of UK businesses are hamstrung by their own business models and unprepared for the recovery of the market. In a new report on business models, Grant Thornton presents the lie of the land – from the latest research on UK business model behaviour during the recession to a list of questions you can to bring to the boardroom table…

Grant Thornton commissioned The Economist Intelligence Unit to survey over 450 UK executives on their business models, if/how they have changed and if/how they are planning to adapt over the next 18 months.

You can download and read the full research and analysis booklet here: Retrench or refresh: Do existing business models still deliver the goods? Or read the summaries below.

While the recession saw many companies retrench or cut costs, this type of business model change was more about survival in the present rather than playing the long game.

The question now is how to regain the competitive edge by looking at other areas of the business model, for example, to find new ways of operating, new mechanisms for revenue generation or to exploit a new era of technology, global markets and distribution outlets.

Below are Grant Thornton’s summaries from the report:

• Watch a video summary of the report
A quick overview of the statistics and issues facing business model innovation in the UK today.

• Flawed strategies put business recovery at risk as recession ends
Read about the six primary UK business responses to the recession with just two types adopting a strategy that is ‘fit for purpose’. Discover which are the two successful strategies and benchmark your behaviour to see if your business model is set to deliver the goods.

• 10 ways to put business models on the board agenda
Our research shows that most companies need to review, and possibly renew, their business models. Here are 10 areas to review, each with a set of questions to put to the board.

• What are the weaknesses in today’s business models?
Four experts from Grant Thornton review the weaknesses of business models used by UK businesses today.

• What should business leaders focus on to survive?
Three experts from Grant Thornton give their views on the challenges facing UK businesses today.

In our next post Futureproof your business model in three steps we will also be presenting our options for how to manage business model change easily and effectively.

For more about the report, revising your business model or how Grant Thornton can help, visit our dedicated site Refresh: 2010 and Beyond.
For individual advice on how we can help support your business, email the Grant Thornton team at heretohelp@gtuk.com