Business models interested in staying on the cutting edge have to be able to adapt to globalization and industry 4.0 trends like digitalization and immediacy if they are to flourish.
But it must be accompanied by innovation, which is improving upon something that already exists. Ingenuity, noticing new trends and using consumer behavior insights also play an important role in guaranteeing success.
Take for example the case of the video rental industry. Blockbuster was a film and video game rental leader1 in the nineties but was unable to keep pace with society and technology. Now Netflix’s digital streaming platform provides films, series and documentaries for a monthly fee.
They two companies focused on the same audience, video content consumers, but the difference between them was innovation. Netflix used technology to improve upon something that already existed and the result was that its platform won over consumers, making Blockbuster obsolete.
Below are five tips so your business can prevail in this new era:
- Accept change and stay one step ahead. One of the most important premises of the fourth industrial revolution is change. Resisting it will not make it go away and, on the contrary, might ultimately lead to the disappearance of your business. Adapting and taking on the challenges new trends bring will be key to your business’ success.
- Get ready for the consumer of the future. It is a well known fact that the latest consumer trend is online shopping and that many age groups prefer it over brick and mortar stores which is why it is important you take measures to use digital platforms.
- Bet on the consumer experience. It is no longer enough to provide a service or product that satisfies a need, consumers want experiences so they can connect with your brand which is why you should continue to put consumers at the heart of your strategy.
- Consider new clients. There are going to be many technological changes and opportunities, so consider broadening your target audience, to grow and remain successful.
- Measure your impact. An action plan is not enough. In order to determine whether you’ve been successful or need to refocus your strategy and reach important decisions you need parameters to measure the impact of your actions to help you find a clear road towards your stated objectives.
This industrial revolution is a wonderful opportunity for existing, as well as new businesses so they can forge their own path towards success but it is also a time to set trends and innovate.
1 Blockbuster was the leader of the film and video rental industry in the U.S. and some Latin American and European countries.