In order for business’ to grow profitably they must devise ways to scale existing business processes. The mechanisms for supporting growth are relatively known but the tools available to systematically identify, design, and execute such growth initiatives remains ‘in development.’ A Scaling Model Canvas can help business’ build the needed processes, competencies, and infrastructures needed to support continued growth.
Scaling processes & business methods helps to decrease costs, expand market reach, and strengthen the business’ position in the sector. These savings can be used to focus on core competencies to strengthen the business’ competitive advantage or passed on by way of reduced prices to the customer. These savings can also be used to expand on the business’ future product/service offerings in addition to research & development, etc.
The following Scaling Model Canvas is grouped into the following sections:
- Offerings & Configuration: Represents the core products & services offered by the business.
- Diversification: Represents the scope & breadth of the different products & services lines (or combination) offered by the business.
- Outsourcing: Represents the “non-core” areas outsourced by the business in order to improve profitability, efficiency, and productivity.
An example includes the industry of Business Consulting. Scaling in this industry is often completed through:
- Standardization of service offerings
- Standardization of methods and practices
- Standardization of procedures
- Standardizing processes for developing Innovation
- Standardizing methods for evaluating performance
Scaling can also be created through the offering of more products or services based on core competencies & strengths owned by the organization. The diversification of shared products & service offerings strengthens the organization’s profit margin, improves efficiency, and heightens an opportunity for more productivity as consultants are able to work on extra projects. Examples of more products & services that support scaling include the following:
- Training & Workshops
- Software & Automation Tools
- Publications & Reports
- Installation & Setup Assistance
Outsourcing “Non-Core” areas (key to the business’ competitive advantage) can also help the business scale and focus on areas that generate more business, profit, and customer retention. Areas that businesses (in the consulting and other areas) often outsource include the following:
- Technology & Infrastructure
- Human Resources, Payroll, & Legal
- Marketing & Sales
- Logistics (supply, delivery, storage,
- Services (repairs, installation, etc.)
Businesses can also focus on the following areas when emphasizing growth:
- Improving the Product
- Making the Product more quickly
- Improve Customer Service
- Improve the Sales Cycle
- Collect Payments Faster, &
- Improve Processes
When identifying opportunities for scaling and outsourcing it is crucial that non-core areas are identified. Core competencies represent the business’ competitive advantage and help differentiate why the customer purchases from your business instead of the competitor.
How is your organization scaling existing efforts? Share your comments below.