Pivoting – when a company or organization shifts to a new strategy – has been an integral part of business innovation for many years. The COVID-19 crisis has made defensive pivots essential for many companies. But whether the existing business model has been disrupted or destroyed, or the company pivots proactively due to realizing new opportunities, it’s important to focus on the potential benefits rather than the risks.
You can identify multiple potential pivot options throughout your organization. There are three business model aspects you should explore when deciding on potential pivots:
- Value proposition: What innovation, service, or feature do you deliver with your product or service? How does it solve/improve customers’ problems? What benefits can your customers expect? Why should customers buy from you over your competitors?;
- Value networks: buying and selling products – as well as sharing information – involves a set of connections between organizations and/or individuals. Who is involved in your set of connections?; and,
- Target customers: Who receives and benefits from what you provide?
Once these aspects are defined – and potential pivot points identified – you can begin to reassess your business plan in light of our current situation. Parts of your product or service may be delivered electronically. Can you deliver needed value working with partners? What new products or services could you create with existing resources? Are alternate payment methods – such as subscriptions – a possibility?
Targeting customers often involved two avenues: finding new clients and repositioning yourself with existing clients. Your pivot points can be the key to doing both.