Understanding internal change – video transcript

In this video Understanding internal change, learn how to pivot, adapt or transform your business when you need to respond to change.

Five. Understanding internal change.

Regardless of the size of your business, whether you're a local business or even if you're setting yourself up for global expansion, understanding that there are changes you can make within your business is critical to your success.

Internal changes are decisions you make within your business, and these decisions are something you can control.

Penny has just completed her context map canvas, which has helped her identify changes happening in the world around her business.

She realises that her market has changed and that she needs to make some changes too.

Think about the context map canvas you've completed and how the shifts you identified could affect your business. Update these on your current business model canvas.

In Penny's case, there's been a run of bad weather and other reasons why less people can visit her stand. So she needs to make some internal changes to her business.

Penny adds online customers to her customer segments.

Because of this, she has to change her value proposition to selling lemonade syrup.

This has also meant her channel to customers has to change to an online store with home delivery.

She's also refocused her customer relationship efforts to a friendly online experience and trained her friends to provide excellent phone support.

With her lemon tree now very low in fruit, this has caused some risk to her key resources, she must investigate a more consistent supply of lemons.

Instead of table, chairs and cups, she'll need to investigate bottles and packaging options.

Her research and development team will also need to adapt her lemonade recipe to a lemonade syrup.

Her friends will need to be retrained to help package the syrup for post.

Under key partners, Penny has found a wholesaler for sugar and lemons, which reduces costs.

Under cost structures, Penny no longer needs posters and cups, but will need to pay for the online store and online ads to get her products seen. She must also allow for postage and packaging.

For revenue, the price per cup has been replaced with price per bottle and per dozen. She's also offering a lemonade club subscription where customers receive 2 bottles per month delivered without having to reorder, creating convenience for customers and also a more consistent revenue model for Penny.

Penny takes a look at how her changes are making an impact on her business. She notices her sales have increased, which means her profits are rising too.

Revisit your own business model canvas. Have a think about the 9 areas on your canvas with a fresh lens.

What internal changes might help shift your business into a higher gear?

How will changes to parts of your canvas affect the other parts?

Are there opportunities to improve your business or create more efficiency?

Watch the video Understanding internal change.