As this quote from Harvard Business Review proves, business reinvention isn’t a new concept — but it’s just as necessary for your organization’s success today as it was back in 2011. What if Amazon had never shifted from an online bookstore to e-commerce everything? Or what if Apple had just stuck to desktop computers or Disney never moved beyond making movie magic? Life would certainly be different.
The good news is that business reinvention is not reserved for mega brands like these. Every business will face legitimate growth challenges and increasing margins through cost reduction. You need to grow, and the last thing you want is to realize you need to reinvent as you're speeding towards the end of your growth runway.
Bear in mind, we’re not talking about reinventing the wheel. Too many organizations fall into that trap by solving solved problems. Instead, what we’re talking about is true business reinvention that harnesses the power of new technologies to bring new and novel ideas to life. Through reinvention you can reshape or even create a new market that could unlock billions.
The word “reinvention” can feel overwhelming, but the easiest way to think of it is the difference between innovation and optimization. Optimization polishes what you already have; innovation breaks new ground. Optimization is useful, worthy, and more safe. It’s not meant to disrupt, but rather build upon established success. That’s a good thing, but it’s not reinvention. And there is an innate problem with optimization — it comes with diminishing returns. At some point, the gains won’t be worth the effort, time, or money spent.
There’s another problem with being solely focused on optimization. The enterprise world has a bad habit of sticking with what feels safe instead of aiming for market-changing disruption. That’s why one study showed that only 8% of enterprises are considered “reinventors.” Ironically, that mindset doesn’t match what business leaders actually expect from their organizations. During a 2021 McKinsey survey, business leaders said they expected that by 2026, half of their organization’s revenue would come from products, services, and businesses that haven’t been created yet. That’s a lot of reinventing to do in just five years, especially if you’re not already in the reinvention mindset.
We use the word “mindset” for a reason, because successful business reinvention requires the right frame of mind and the right ideas. Here’s how to get both:
1. Think in terms of solutions
If you sit your team down and say, “It’s time to reinvent our business model! Let’s go around the table and start rattling off a list of game-changing ideas,” you’ll have a herd of deer in headlights looking back at you. It’s too tall of an ask. It’s intimidating, not innovative.
Instead, think about what you’re actually trying to do — solve a problem that no one else has tackled yet. What would make life easier and better for people? Start with that question, encourage your team to share every single answer that pops into their heads (no matter how off-the-wall), and the really good ideas will begin bubbling up to the top.
2. Be willing to experiment
Whether you’re adding a new feature to an existing product or expanding into a brand new market, every business change is nothing more than a hypothesis until the market proves whether or not it was a success. So, be willing and have a way in which you can experiment rapidly and at a respective low-cost.
Have a process in place to decide which ideas are worth pursuing, then validate them rapidly and get the best ones to market. With modern design-led techniques and scalable collaborative tech, you can produce testable digital solutions within weeks. If you’re stuck here or unable to move at this pace, ask why and find a partner who can accelerate this with you.
3. Make it a team effort
The decision to reinvent can come from the C-suite, but the process of reinventing needs to come from every corner of the business. You need a collaborative team of experts to consider what the market needs, what’s possible within your organization, and what potential risks and red flags exist. As an added benefit, having your team play an active role in the reinvention process is a fantastic way to empower your employees, which can multiply the effects of your reinvention. Good for culture and good for your top-line.
4. Use mobility for inspiration
A lot of companies — even those without wheels and wings — have used mobility to reinvent their businesses, expand their brand awareness, and drive more revenue. For example, Rivian’s HMI and IoT system makes it faster and easier for gig workers to navigate densely-populated areas. It’s a game-changing solution for people who make more money with every delivery and dropoff — and it introduced Rivian to an otherwise untouched market and demonstrated new value to potential investors.
Curious how mobility can reinvent your business? Our Launch Point, Mobility is the reinvention platform for any enterprise, has insights, examples, and an action plan to help you start your journey.
