Optimize
To give you greater confidence in your business and the decisions you're taking, Forvis Mazars has developed Optimize: our proprietary business diagnostics and benchmarking platform.
Transitioning to a different business model
But transitioning to a different business model it is not an overnight task. It is a process that needs to be reviewed regularly to prevent the company from being left behind by evolving market trends, or becoming disconnected from the expectations of stakeholders, such as consumers, employees or financiers.
There are three main stages to business model transition:
The culture of the business is critical to effective business model implementation. Senior management needs to be engaged and committed to the changes – and seen to be so. The transition and the benefits it will bring need to be communicated clearly to employees. The actual purpose of the company must be communicated transparently and authentically. Everyone should feel involved, to understand what’s happening and why, and to take ownership of their responsibilities. This may mean revising the rewards and incentive programme to ensure it is aligned with the objectives and key milestones of the new model.
Investment is also likely to be crucial. Effective transformation needs effective budgeting, which may mean securing external funding from banks or other finance providers. If you need to secure finance externally, the assessment and analysis you’ve carried out during stages one and two can be invaluable when demonstrating the viability of your strategy to potential lenders or investors. Having accurate ESG data, for example, will position the business more positively for most finance providers, who will have their own sustainability requirements to comply with.
At Mazars, our global privately owned business teams work with clients around the world to support them in transitioning to new business models. One concrete example of business transformation is our work with Hailo in Germany, who we are successfully supporting to transform their business model. Hailo has been producing ladders and waste for many decades as one of the market leaders in their industry. Hailo determined the need to embrace the opportunities of sustainability transformation, and developed a new business and revenue generating model around smart waste data.
Now, their new Smart Waste Solutions can package smart digital and analogue product solutions to optimise waste prevention and disposal sustainably in commercial environments. Sensors collect the data from the waste container and transfer it to the data analysis cloud, where it is converted into detailed key figures about the waste and sustainable waste disposal based on machine learning. Due to the high amount of data, the Smart Waste Solutions give exact predictions when a waste bin will reach its maximum fill level.
Through the partnership with Mazars, our teams supported Hailo Group to ensure the data linked to the ERP systems of their customers. This enabled customers to measure and analyse the waste they produce very effectively, and thereby develop strategies to manage and reduce it. As an added benefit, the solution also supports the preparation for ESG reports.
“I put a high value on the partnership between us and Mazars. In Mazars' many individuals we find trustworthy and approachable professionals that we can see to eye to eye with. Next to their expertise and in-depth knowledge, I find the entrepreneurial spirit outstanding compared to other cooperations, and in this an understanding of both our challenges as well as the strategic long term approach we take. I'm certain that we will learn a lot from the partnership and that we will mutually benefit from the cooperation in both the short and long term.”
Christopher Erbach, Managing Director, Hailo Digital Hub
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