Strategic Renewal in the Business Model

In today’s fast-changing world, the key to success is strategic renewal and innovation. Companies need to quickly adapt to changes in the environment and invent new sources of profit before the old ones disappear. Postponing this work can be fatal as long-successful business models can now get broken almost overnight. Strategic renewal involves dynamically adjusting business models and strategies to the deep changes at work in the external environment. This requires innovating and creatively reconstructing traditional business models to create significant new value for customers and the company. Businesses should organize a high-level strategy forum to rethink their business from the customer backward and realign their business model to address their new needs. Companies need to challenge deeply-held orthodoxies and harness emergent trends and discontinuities to substantially change the way things are done in their industry. They should leverage core competencies and strategic assets in novel ways to generate new growth and understand and address deep customer needs that are currently going unmet.