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November 28, 2017

6 business strategy rules to succeed with your business model

Why is so important to think about your business model?

If you look back and reflect on the traditional companies that started their activity business early in the twentieth century, you will find a fact that a firm maintained the same business plan along decades or even a whole century.

We are facing different times as the Philosopher Zygmunt Bauman explains, right now we are living liquid times, that means that nothing endures eternally, all the opposite the changes race sprint that we have to be prepared to pivot our business as something natural. The life expectancy of a company included in the Fortune 500 list has an average of 40 to 50 years.

Average company lifespan on S&P 500

From the beginning of the new 2000’s we live in a technology acceleration path, businesses, products or services more than being transformed are re-invented from scratch at the speed of thunder.  The so-called Digital Transformation brings new opportunities and new threats for those that can not adapt to the pace of change.  So think about it, if you are running a business, your business model has to be your priority, more than producing the current profit, you have to keep the vision in the short term, mid-term and of course in the long term. Just to ensure, that your company is adapting to the modern times.  Often the majority of large enterprises a looking always to work for five years strategies, then they realize the something new in the market can disrupt their core business as a quarter fraction time. Maybe you do not have to change at 100% your core business, but the little changes are the precious value, these new services o small products can differentiate from the rest, we live in an era that The Blue Ocean strategy is applied by tech unicorns daily.  The customer also has changed, they live connected to their mobiles, and their exigencies grow accordingly. People want everything instantiated in just one click.

How to build a robust business that lasts?

As Martin Reeves explains in his TED conference, you have to follow only six rules, in fact, these are the rules for every human immune system, as long as your business strategy is feed with this essential human behavior recommendations, you can ensure that your company runs behind the scene strong pillars.

Business strategy rules infography

Redundancy

  • First of all consider Redundancy, into a biological sense a redundancy is the existence of multiple genes inside an organism which performs the same function. If you think about your business plan, the provision of resources to execute an activity or purpose. Repetition of parts or subsystems (or whole systems) to provide a backup in the event of primary system Elimination of jobs or job categories brought on by downsizing, rightsizing, or outsourcing.

Diversity

  • Second, try to create a Diversity, the term biological diversity can be utilized advocating conservation, and a characteristic of a combined workforce which offers a vast assortment of skills, expertise, knowledge, and strengths because of its heterogeneity in age, background, ethnicity, physical skills, political and spiritual beliefs, gender, and other features.

On other company scenarios where different heap sizes, distribution channels, product mixtures, etc., set different requirements on resources because of a variable assignment of prices.

Modularity

  • Third, build something based on Modularity denotes the capability of a platform to arrange distinct, individual units which could complete boost the efficiency of community action and, in a biological sense, eases selective forces upon the system. Modularity is seen in all design systems and may be studied in just about any scale of biological organization, from molecular connections all of the ways around the entire organism. The level to which system or a guide is composed of parts or interlocking although independent components may be applied to your organization activity.

Adaptation

  • The fourth point to take into account, pass through Adaptation, as it provides some enhanced function, adaptations are fitted by natural selection. A Revised version of work or edited aimed at serving a particular Modification of a theory or object to allow it to be applicable in different scenarios from originally expected. We live into a Digital Revolution so as every species you have to adapt or die.

Prudence

  • Fifth, search for the Prudence, significant judgment or wisdom gained from knowledge and experience, expressed at a sensible and frugal mindset. Prudence, however, isn’t the same as wariness or caution concerned with maintaining the status quo. When there isn’t any real cause for anxiety, prudence lies in avoiding deliberations and at the willingness to sacrifice the present gain for the higher gain of tomorrow.

Embeddedness

  • Last but not least, Sixth, working on Embeddedness emerge and evolve through standardized procedures that are interactive and consistent. Embeddedness Networks are seen as the construction of connections into the community. Refers to firms’ relations with, and reliance on kinds. Using the work embeddedness concept companies will help enhance and increase their individual and social capital.

 

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