Nearly 60% of surveyed businesses prioritize innovation of value-adding business models, services, channels, or touchpoints as a way to address evolving customer expectations.
Meeting customer needs in exciting and novel ways still remains the traditional innovation strategy among midsize high-tech businesses. But increasingly, they are also considering opportunities that can help them quickly adapt to market changes while growing market share, profitability, and value over time.
Although they are effective in driving new revenue streams and acting on growth opportunities, service-based business models also introduce additional complexities – especially when maintaining service quality during rapid growth, disruptive supply shortages, and economic volatility. For that reason, proper business model design and management practices are crucial to fully realize all advantages.
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