Novelty in process, novelty in product and novelty in planning are three basic elements of any distinctive and successful business model that leads to exceptional business growth and strong financial performance. Novelty is an integral constituent of any business core strategy which is built in line with the organization’s offerings and its value proposition.
The novelty or the original idea is not only being consistent with the emerging market trend, but also accomplish the commercialisation aspect of its product portfolio. The business model should differentiate itself from the competition, defines its market fit with purpose and creates customer expectation. It also creates value to the customer, generates welfare for the society and addresses the challenges of the growing world.
Recent advances in communication and technology, taking into account the emergence of the Internet, introduction of Artificial Intelligence enabling organizations to rapidly decline their operating costs and overheads, big data driven decision making etc. have given rise to disrupted entrepreneurship and accentuated possibilities for designing differentiated business models.
Each business model defines a specific ecosystem, which is assimilated within the business plan to create a sustainable business model. This ecosystem comprises of skill development, technology development, product development, after market support and engineering services.
The true power of a business model is harnessed by inculcating a working culture which drives problem solving skills, develops process models, innovative products and systems, provides orientation towards market gap or creates a new market, demonstrates interpersonal skills such as self driven abilities with exploring quotient mind set, learn and unlearn attitude coupled with critical thinking, and scientific research abilities.
German philosopher Arthur Schopenhauer was quoted as saying, “Talent hits a target no one else can hit. Genius hits a target no one else can see.” Novel strategy envisages business in a way that others did not see or think as possible or probable. In today’s Cambrian explosion of new business models and organisational forms it is this imaginative genius that leads to success. Leadership needs the courage and perspective to look for novelty beyond the “known” strategy.
Startups are more focused on a differentiated business approach with a competitive edge to it and are driven by novelty while incumbents strategise as per the historical data and experience. Firms should avoid immunisation to novelty and continuously refurbish the existing strategy tools to gain a competitive advantage.
Some of the most effective and efficient tactics and techniques followed by highly performing organisations include technology mapping coupled with research direction, location mapping, business mapping along with calculative risk while raising funds in later stages etc.
-The writer is Founder and CEO of a Bhubaneswar-based aerospace technology start-up Tzar Aerospace Research Labs. The views expressed are personal and do not necessarily reflect the views of Raksha Anirveda
