How to use megatrends for your business model

Megatrends influence organization and processes in companies, as you were already able to do that in my blog post (link) Read from June. But where new megatrends arise, entire business models are also available — or they must be adapted. Where is innovation worthwhile — and where is it even necessary for survival?

Amazon has “invented” and continuously developed the world of online shopping. Vacancies in pedestrian zones today testify to the success of this business model, which is becoming a megatrend connectivity heard. Many new companies are now active in this market and refrain from expensive rents in good business locations. However, there are also companies like C&A that have overslept the trend...

Here are also some key questions for initial orientation: How do relevant megatrends change customer expectations? Which fields of action do we have to work on for changing business models? How do we prioritize? And how can we avoid blind activism, create real added value and thus contribute to shaping the future of the company?

Business models put to the test

A business model comprises four factors: value proposition, revenue logic, processes, and partnerships. Megatrends have an impact on all of these levels — but not every trend affects every business model equally. The following three approaches help to identify relevance and potential:

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1. Rethinking value propositions
   The mega trend identity dynamics changes customer needs. Think of gender-neutral products, for example — from fragrances to clothing and shoes.
2. Diversify revenue streams
   Die connectivity makes it possible to monetize not only products but also services. In addition to the actual products, data-based services are offered, for example for predictive maintenance in mechanical engineering.
3. Cooperation as a key resource
   The mega trend urbanization opens doors to strategic collaborations. Think, for example, of delivery services that sprouted up like mushrooms during the pandemic. Bookstores, furniture stores and other stores are now using urban delivery platforms. Still other companies present their products in temporary pop-up spaces to create customer experiences without expensive retail space.

But how do you come up with ideas for new or modified business models? In fact, external trends often serve as a starting point for considerations. The boom of digital health apps (megatrend health) led, for example, to hybrid business models in the health insurance industry: They have incorporated digital prevention programs into their portfolio as a service for their customers and offer added value for their insured persons. Some manufacturing companies are using the potential of the megatrend Future of Work. In addition to their products, they rely on solutions for remote maintenance and data analysis, some even as a subscription model.

Innovation is becoming a trend response

In my opinion, megatrends are useful guidelines for changing the existing business model and using innovative opportunities strategically. I would be happy to support you — let us shape the future of your company together!

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