It's hard to talk about economic performance without falling into the trap ofs clichés of the such as: do more with less, understand "Reduce your expenses and increase your SALES !". Finally, like a pre-summer diet, all we need to do is get a better grip on what we eat (less expenses) and do more sport (moree CA).
At iQo, we don't see business performance as a drastic, restrictive and restrictive regime even if we too have our convictions and a few recommendations...
An adapted business model
Evolving your business model and strategy is by no means easy.. First and foremost, you have to take major risks to ensure that your offering continues to meet the needs of a demanding market.. And change will be all the more difficult the larger, more complex and diversified the organization.
In the 2020s, Nokia moved away from the production of mobile handsets to focus on hard and soft solutions for telecoms networks, and on R&D that generates a large number of innovations and patents. In just a few years, Nokia has gone from mobile leader, a position it held for almost 15 years, to one of the 3 leaderss in telecommunications network technologies. Throughout these years, Nokia has notably nurturingi its new business model gthrough acquisitions (Motorola, Panasonic, Alcatel Lucent, ...). A business model close to that of its Swedish neighbor Ericsson. Today, the 2 Nordic Nordic players are battling it out over the rollout of 5G technology, with nearly 15 years after their fierce fierce competition on mobile terminals.
For other, more agile companies, the evolution of their their business model may be easier but no less risky. By definition, a start-up-up is a phase in a company's development when it is looking for its business model, a repeatable business model for scaling up. to accompany its growth. So, the example of Archionline (resale of archived architects' plans to new consumers) is an interesting example.. Lhe model works well in the US on a transactional principle, but deployment in France on the same model is complicated by the evolution ofs regulationss real estate, urban planning and environmental regulationsplans are often unusable. Almost 10 years after its creationthe company a hasevised its business model towards intermediation. It has set up an intermediation platform between private individuals on the one hand, and architects and building contractors on the other, with from freemium and and a range of additional paid services.
In short, the business model is as much a reflection of the company's strategy as it is of the expectations of customers and consumers in terms of acquisition and use of the product or service concerned. Adapting to them remains a key factor in the company's long-term future.
A mastered value chain
Porter shed light on the value chain concept almost 40 years ago and and this approach remains more than relevant today! Like supply chain which withstood the crisis in the Covid crisis, the key question is to understand how the organization creates and with what activities? Qhich activities catalyze the creation of value, and which destroy it? ? And which, whether we're talking about core business activities, support activities or even management activities.
At the same time, CAM-I published its first book formalizing the activity-based costing method based costing (ABC). This method goes against the grain of product-centric costing approaches., in order to accurately identify, the causal link between costs and resources through activities.
At a time when the global economy is slowing down, these tried-and-tested, recognized concepts provide us with the keys to measuring and steering value creation, and to securing the organization's profitability in a deteriorated, hard-to-predict environment..
Agile processes
Industry has taught us the value of standardizing processes. Lean approaches have enabled us to limit waste, the famous Mudas. Eand today, agility offers new perspectives. For example the question of process finality can be linked to the Minimum Viable Product principle introduced by agile approaches.
Over time, processes have been "customized" to meet related needs, "nice-to-haves" or constraints outside the core business: HR or budget management, regulatory changes, etc. ... At a time when the health situation is depriving many companies of part of their income and provoking a trend towards deregulation, our processes deserve to be reexamined.
This questioning should help us to rediscover the primary objective of the process and ensure that it delivers the expected results. To do this, we often need to slim down the process (yes, we do) to get back to the basics, identifying and analyzing the constraints weighing on the process.
This revised target must always be set in the context of the stakes and costs involved., to justify process evolution within the IS, and to guarantee ownership of the process by all those involved..
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