Organizations across industries are disrupting their markets with digital, subscription, project, and service-based business models. This trend began in IT and has now spread to other sectors. By leveraging data, companies are transforming customer experiences and blurring industry lines.
Service-based models allow companies to create renewable, predictable revenue streams through subscriptions, project-based services, and fixed-fee models. These models foster long-term customer relationships by engaging them in new ways.
Traditional ERP systems, however, often hinder this transformation due to a lack of business visibility and manual processes. To adapt, businesses need modern ERP solutions that integrate financial management, sales, project management, resourcing, and people management. These solutions must unify financial, operational, and organizational data to unlock insights and drive success in a service-centric environment.
Research indicates that 50% of CIOs in the United Kingdom are seeking enhanced ERP solutions with AI, machine learning, automation, and business intelligence capabilities. Additionally, CIOs believe ERPs equipped with deep learning and predictive analytics can provide a competitive edge. In a survey, 43% of market leaders expressed the need for new and improved technologies in their ERP systems to facilitate faster operations and upgrades.
Adopting Disruptive Business Models is the key to survival
Disruptive business models are innovative strategies that significantly alter traditional business methods. These models often leverage new technologies or methods to substantially impact the market, and they help displace established competitors.
Key characteristics of disruptive business models include:
- Innovation: Introducing new products, services, or processes that better meet customer needs.
- Accessibility: Making products or services more accessible or affordable to a broader audience.
- Efficiency: Streamlining operations to reduce costs and improve customer experience.
- Scalability: Utilizing technology to scale operations and reach a larger market quickly.
Common types of disruptive business models
The list of disruptive business models is exhaustive, but some of the common types dominating the business world include:
- Subscription models: Offering products or services through subscriptions to generate recurring revenue.
- Marketplace models: Connecting buyers and sellers on a centralized platform, extending reach through social media and virtual worlds.
- Experience models: Providing tailored, unique digital experiences to retain customers.
- Sharing models: Utilizing crowdsourcing and the gig economy to provide goods and services.
- Connectivity models: Using AI and machine learning to enhance product and service delivery.
These models require operational and organizational changes, linking financial indicators to underlying metrics and integrating data to drive value and improvements.
