Terry Back, Partner at Grant Thornton shared some new research with our audience. Conducted over the last six months, in conduction with the Economist, the research surveyed 450 top executives from UK and Irish companies about their business models.
How resilient has your business model been in recent downturn?
The current assumptions within our business model need to be overhauled as result of the recent recession?
- Extreme resilient 21%
- Moderately resilient 64
- Not very resilient 12%
- Not at all resilient 4%
- Strongly agree 8%
- Agree 26%
- Disagree 51%
- Strong disagree 12%
- Don't know 3%
Which of following ares is the highest priority for your business model over next 18 months?
- Distribution channel 8%
- Target markets 16%
- Value proposition 44%
- Cost structure 6%
- Revenue generation 26
The key findings from the research are:
- Biz model changes primarily cost-centred and left many companies unready for future
- By concentrating on cost companies may miss opportunities to be more innovative
- Executives are pessimistic about a return to growth
- Complacency is preventing more widespread biz model innovation (85% believe their biz model doesn't need changing in next 18 months
Through the research six distinct types of minds sets were identified:
- Heads in sand 10%
- Fighting the last war 25%
- Best before 18%
- Hitting the panic 10%
- Ahead of curve 19%
- Moving to the margins (intent on improving their margins) 18%
During the interactive voting at the conference people were generally more optimistic about the future but also more realistic in that they felt that a pressing requirement to review business models.
The full report Retrench or refresh? Do existing business models still deliver the goods? can be downloaded from the Grant Thornton website (free registration required)