Industry Insights - New Business Model Trend in Manufacturing
Our clients realize the potential of having "everything" in cloud. This year, the market for cloud services is worth $43 Billion (source: Gartner). Yet clients and consulting firms are confronting a reality. Creating a new business model in cloud while keeping the existing models profitable, making the right calls to decommission a current model and transform into a new model is not in every firm's "success" playbook. To achieve success with new business model in cloud, there are a key prerequisite. As a firm we all need to ask one question to ourselves about what we are offering? We need to ask the same question to the clients we are consulting with and also to our partners. Are we clear on where our clients want to go in the next five years? Is our offering aligned to the client's? Clarity is key, think big, start small, develop a prototype and get going. Once clarity is there, define a four step strategy to create the new business model for our clients. They are:
Step 1: Define a specific business model. For example, in Hi-Tech industry, whenever our clients are selling a "product", they must sell a service along with it so that not only they go to market with an integrated offering but also to ensure that contract renewals happen pretty easily.
Step 2: Define a proper operating model. The operating model must consider four pillars. They are
(i) Delivery capability
Step 3: Define a proper model to co-exist non-cloud organizational blocks along with blocks which can move to cloud.
Step 4: Define a world class customer experience strategy. Our end goal is to offer a "service" bar to our clients. Allow them to pick and choose the services and enablers from the bar.