When a crisis like a coronavirus pandemic hits an organization, its executives need to assess the impact on their business model, both immediately and over the long term. A framework we’ve developed over a decade of teaching can help executives identify the business-model risks and opportunities that the crisis presents.
To start, you’ll look at the four core dimensions of your business model: customers, value propositions, value demonstrations, and capabilities. Second, you’ll analyze the connections between these dimensions. Third, you’ll define realistic objectives for your organization, during and after the crisis. (You may want to consider different objectives for different crisis scenarios, such as fast crisis recovery vs. long lockdown period.)
The Four Dimensions
First, you need to assess what the crisis means for customer demand. Will overall demand go up or down? How will spending patterns change (e.g., spending more on streaming and less on cinemas)? Do you need to consider new delivery channels (e.g., switching from bricks-and-mortar to online)? Are there any new customer groups to consider (e.g., government or home office customers)? And finally, does the virus create safety concerns (e.g., if you sell services that must be performed face to face)? read more