Consultancy, the platform for the consulting industry, reports on the outcomes of the ShoppingTomorrow research program. How can retailers & consumer products scale up new business models?
Scaling up new business models and service concepts within the retail sector can be challenging. It demands a refined approach. In a new whitepaper by ShoppingTomorrow, Emixa and Bluebird Day share six steps retailers must take to steer this process effectively.
It has been over two decades since the advent of the internet disrupted the retail sector. Today, names like Google, Amazon, AliExpress, Bol, and Coolblue are ubiquitous, yet the list of start-ups that failed—and are now forgotten—is far longer.
As of 2024, we may be on the brink of the next wave of innovation, driven by artificial intelligence, sustainability demands, and a new generation of consumers. How can emerging retailers avoid ending up among the forgotten start-ups?
Experience shows that coming up with a good idea isn’t the hardest part. The real challenge lies in scaling it into a sustainable and profitable business model. To address this, the new whitepaper by ShoppingTomorrow—a network for digital commerce professionals—prepared by Emixa and Bluebird Day, offers a roadmap.
The first step focuses on generating innovative ideas with potential for the retail market. This can involve methodologies like lean start-up and design thinking or leveraging current trends and technologies. At the heart of this phase are the "4 P's": people, planet, profit, and potential. These criteria help evaluate each idea's value and impact on customers, businesses, and society.
This step shapes the business model and examines its feasibility and scalability. A thorough stakeholder analysis and clear objectives are the foundation of this phase. The Business Model Canvas is often used here to develop the idea's key components and identify potential bottlenecks.
In the validation phase, assumptions are tested for feasibility and customer needs. This is done by developing proofs of concept and gathering feedback from customer panels. By addressing potential obstacles early, businesses increase their chances of successful scaling.
At this stage, the business model is further refined, with specific project phases and resources defined. This includes analysing dependencies with other projects or business processes. Clear KPIs are established to measure progress and identify risks early.
Before scaling up, the model is launched as a pilot, for instance, in a specific region or customer group. By carefully selecting the pilot, retailers can test feasibility and implement improvements. Measurable results from this phase provide valuable insights for broader implementation.
Based on pilot results, decisions are made to halt, continue, or accelerate the model. Successful pilots may lead to rapid scaling, while less favourable outcomes allow for alternative adjustments to be explored.
Successfully scaling business models requires not only ambition but also a strategic approach and a willingness to learn. Striking the right balance between innovation and scalability is crucial for sustainable growth.
By identifying risks early and continuously evaluating progress, businesses can navigate the complex landscape of innovation and scaling successfully.
As Albert Einstein once said: “In the middle of difficulty lies opportunity.” Retailers now face the challenge of not only developing new initiatives but also making them widely successful. This benefits both the organisation and society as a whole.