Want to up your revenue? Do business model innovation!

Written by Student Reporter (Didid Rogiananto, Entrepreneurship 2021)

In running a business, there is no guarantee that your revenue will grow. Many uncertainties appear such as market changes, flux trends, the presence of competitors, and so on. How to deal with these challenges, let us discuss it further. The Co-Founder of Kolaborasi Kapital Indonesia, Sutansyah Marahakim, was invited to talk more on how to tackle the uncertainties by doing a business model innovation.

According to him, most start-ups who did business model innovation were those who had revenue issues. “The business model innovation then is defined as a renewal strategy to face market uncertainty with innovation and technology,” said Sutansyah (7/9/2020).

There were several types that could be done to do business model innovation as he explained. “The first is Democratization, which aims to make people feel payless when using our products. One example of this strategy is Netflix, where some time ago Netflix has collaborated with Indihome to attract many users. The second is Focus on a segment, where this strategy aims to make your product as a winner in the niche market. What you can do is to focus on one market, learn what they need, then you provide those needs. The third is Product commonalities, where this strategy aims to attract the market by providing many types of products that have in common. This is also done by Gojek, which provides many services but is still based on one core -that is- ‘service using vehicles’,” told the Co-Founder.

“Let’s have a look on how we innovate our business model,” asked Sutansyah. First, he said, in creating customer value, make sure that our products could satisfy the customer needs. Second, he underlined the understanding of our company’s strengths and to focus on those strong points. Third, he went to discuss about competitors in particularly on values and opportunities. “The last would be iteration. Change will never stop, so don’t close yourself down,” he told The Greater Hub tenants.

In closing, Sutansyah also said, “The business model innovation should be done when the company is doing well since they still have remaining resources if fail and losing money. But if it is done when the company is down, most likely it will lead to a bankruptcy” while he emphasized that “Business model innovation does not only increase revenue, but also to find possible opportunities that may not be explored before.”