Comments on: Changing financials, changing economics, retailing and business model innovations http://blog.business-model-innovation.com/2010/03/changing-financials-changing-economics-retailing-and-business-model-innovations/ A fresh approach to strategy Tue, 31 Jan 2012 09:31:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Top 10 in 2011 on business model innovation | Business Model Innovation http://blog.business-model-innovation.com/2010/03/changing-financials-changing-economics-retailing-and-business-model-innovations/comment-page-1/#comment-941 Top 10 in 2011 on business model innovation | Business Model Innovation Wed, 28 Dec 2011 11:14:01 +0000 http://blog.business-model-innovation.com/?p=535#comment-941 [...] Business Model Innovation in Retailing: Changing Financials, Changing Economics (3/2010) [...] [...] Business Model Innovation in Retailing: Changing Financials, Changing Economics (3/2010) [...]

]]> By: Business Search http://blog.business-model-innovation.com/2010/03/changing-financials-changing-economics-retailing-and-business-model-innovations/comment-page-1/#comment-706 Business Search Sat, 07 Aug 2010 12:51:27 +0000 http://blog.business-model-innovation.com/?p=535#comment-706 I agree totally. The notion of customer experience and customer services as a key design objective sounds simple, but in fact it is very revolutionary. We are still stuck in the industrial age, even for services oriented industries like finance. Lots of new innovation to do here. ******** oliver I agree totally. The notion of customer experience and customer services as a key design objective sounds simple, but in fact it is very revolutionary. We are still stuck in the industrial age, even for services oriented industries like finance. Lots of new innovation to do here.

********
oliver

]]> By: Patrick Stähler http://blog.business-model-innovation.com/2010/03/changing-financials-changing-economics-retailing-and-business-model-innovations/comment-page-1/#comment-321 Patrick Stähler Thu, 04 Mar 2010 17:43:32 +0000 http://blog.business-model-innovation.com/?p=535#comment-321 @kay. Zara is an excellent example in retailing. You can see Zara as a logistics company that is keen to reduce inventory costs. To do so, they have a very distinct business model parts you have mentioned. Important for them is that is to reduce their lead time between seeing what is being works in their shops and production. Therefore they had to abandon the traditional way of production of cloths in China. China might be cheaper in production but your time to react to changing market demands is more important than unsold clothes you have purchased at a very low price. I have written a case study on Zara 5 years ago but it is in German. The charming part of a business model innovation is that you can also change the economics of the business to your advantages. One prime example is the largest German brewery. They have never done advertising or spent anything on marketing. All they do is to brew a reasonable beer and get it shipped as cheap as possible to retail outlets. Actually, they are more of a logistics company with their own trucks than a traditional beer brewery with hip and expensive ads. They are called Öttinger. You do not know them? No problem, but you will find their beer at a good price in almost all German supermarkets and that is what counts for them. Cheers! @kay. Zara is an excellent example in retailing. You can see Zara as a logistics company that is keen to reduce inventory costs. To do so, they have a very distinct business model parts you have mentioned. Important for them is that is to reduce their lead time between seeing what is being works in their shops and production. Therefore they had to abandon the traditional way of production of cloths in China. China might be cheaper in production but your time to react to changing market demands is more important than unsold clothes you have purchased at a very low price. I have written a case study on Zara 5 years ago but it is in German.

The charming part of a business model innovation is that you can also change the economics of the business to your advantages. One prime example is the largest German brewery. They have never done advertising or spent anything on marketing. All they do is to brew a reasonable beer and get it shipped as cheap as possible to retail outlets. Actually, they are more of a logistics company with their own trucks than a traditional beer brewery with hip and expensive ads. They are called Öttinger. You do not know them? No problem, but you will find their beer at a good price in almost all German supermarkets and that is what counts for them. Cheers!

]]> By: kay plantes http://blog.business-model-innovation.com/2010/03/changing-financials-changing-economics-retailing-and-business-model-innovations/comment-page-1/#comment-320 kay plantes Thu, 04 Mar 2010 17:00:53 +0000 http://blog.business-model-innovation.com/?p=535#comment-320 Great post Patrick. I am also impressed by the Spanish retail clothing giant Zara that links its designers to the retail store managers so that the designers can quickly change the merchandise based on what is and is not working in the stores. This reduces unsold inventory, helping to improve both margins and asset turns. Other neat revenue model innovations I have seen include renting tools (versus selling them outright) and cloud-computing subscription fees versus outright sale of software. All the strategy decisions underlying a business as you know are interdependent. Seek the innovations that create the most profitable and defensible market position. Good day, K Great post Patrick. I am also impressed by the Spanish retail clothing giant Zara that links its designers to the retail store managers so that the designers can quickly change the merchandise based on what is and is not working in the stores. This reduces unsold inventory, helping to improve both margins and asset turns. Other neat revenue model innovations I have seen include renting tools (versus selling them outright) and cloud-computing subscription fees versus outright sale of software. All the strategy decisions underlying a business as you know are interdependent. Seek the innovations that create the most profitable and defensible market position. Good day, K

]]>