Startup Insider – July 2019

haveledtofallingprices,enhancedthevalueanduseof

productandservices,spedupthedevelopmentofnew
products,easedentrybarriersandintensifiedcompetition.

Thedigitaleconomyhastransformedthetraditional

competitivespaceforSMEsandcallsfornewbusiness

models.Thedigitaleconomyrevolvesaroundinnovativeand
oftenunorthodoxcollaborations,wherenumerouslarge,

smallandmicro-businessescometogetherforthedurationof

asingleproject,thendisbandandformnewpartnershipsfor

thenextproject.Morewidely,therehasbeenanexplosionof
changeandinnovationthatpresentachallengetothe

traditionalconceptualisationsanddevelopmentofbusiness

models.Thedigitaleconomypresentsimportant

opportunitiesforSMEs,whichhavetheflexibilitytotake
advantageofnoveltechnologies.Therearealsochallenges,as

thenewbusinessmodelsrequiredtosuccessfullyimplement

theinnovationsarenotalwaysobvious.Thediversity,

fluidity,interconnectednessandpotentialrangeofnovelnew
combinations,forwhichtheremaybecurrentlyno

precedents,presentsachallengeforresearchers,educators

andpolicymakers.Theyneedtonotonlyknow,butexplain,

andanticipate,whatisgoingon,sothatappropriate
developmentandsupportmechanismscanbeputinplace.

SowhatshouldmanagersofentrepreneurialSMEsdoto

getaheadandstayaheadinthefast-changingdigital

economy?

The diversity, fluidity,

interconnectedness and

potentialrangeof novel

new combinations, for

which there maybe

currently no precedents,

presentsa challenge for

researchers, educators

andpolicymakers.

TakeanAnticipatoryView:Inregardtobusinessmodel

development,takeananticipatoryviewandkeepbusiness

modelsasfluidaspossibleforaslongaspossible.Keep

strategicoptionsopenwhilestillmovingforwardina

businesscontextthatwaschangingveryrapidly.

Fosteraculturewhereexperimentationisencouraged:

Someexperiments,suchasprototypesordemonstratorsare

obviousexpressionsofpotentialideasthatarethentestedfor

furtherdevelopment.However,small-scaleexperiments–

mentalmodels,stimulatedbyconversationswithnewand

differentcommunitiesofpractice,bothinsideandoutsidethe

firmcanbeproductive.Forexample,attendingtradeshows

outsidethesector‘norms’canleadtonewthinking,or

‘sidewaysinnovation’thatmaypersistoverthelongterm.

StrongVisionfortheBusiness:Developandpromotea

strongvisionofwhatthebusiness‘is’andwhatitmight

become.Itisimportanttoreflectontheidentityofthefirm

whenmakingstrategicdecisions.

OrganizeforFlexibilityandAgility:Ontheonehand,the

DigitalEconomymovesquickly,whichischallenging.Onthe

otherhand,theentrybarrierstoexperimentingwithdigital

innovations,particularlyontheinternetarequitelow.

HorizonSensing:Improveskillsofforesightand‘horizon

sensing’andknowingwhentoengageandtakenewideas

forward.Whenarethecriticalpointsforassessingwhethera

newideabecomespartofthefirm–ornot?Suchskillscanbe

honedtocarefullyreflectonthepossiblenewbusiness

modelsinthefirm.

DR.LORRAINEWARRENHAS 20 YEARS EXPERIENCE WORKING IN A

TECHNOLOGY/INNOVATION/MANAGEMENT ENVIRONMENT, IN UK

EDUCATIONAL INSTITUTIONS (RESEARCH/TEACHING/CONSULTANCY)

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