Why Small Optimizations Are No Longer Enough: Business Models Must Now Be Rethought Radically

Many companies are unfortunately realizing today that their business models, which had been successful for decades, suddenly no longer work. The demand for certain products has disappeared, or profitability is no longer at previous levels. Out of desperation, many try to bridge this supposedly "temporary difficult time" with minor adjustments to existing business models and organizational structures – in the hope that the market will soon stabilize.

However, what many do not realize is this: we are not in a transitional phase but in the midst of a long-term transformation. It is no longer enough to simply optimize existing models. Instead, business models must be rethought from the ground up, and organizational structures must be adapted to meet future requirements.

Most companies only focus on their current competitors and fail to recognize that, thanks to artificial intelligence and automation, as-yet-unknown start-ups can suddenly emerge out of nowhere. These start-ups are capable of delivering the same services better, faster, with less effort, and with significantly leaner structures – and thus operate far more cost-effectively. Therefore, it is no longer sufficient to merely observe existing competitors. One must also consider and plan for how one’s own company would look and operate if it were to be founded entirely anew today.

A prominent example is the German automotive industry, particularly Volkswagen. As long as revenue and profits were flowing, there was little questioning of how bloated the organization was or whether the business model was sustainable in the long term. Only when the markets collapsed did management begin frantically restructuring the organization – in order to secure survival.

It is no longer sufficient today to create a three-year plan once and then rigidly follow it. In a volatile environment, business models, strategies, and plans must be continuously questioned and adjusted. This is not about “wishful thinking” but about rational action based on facts. Unrealistic goals not only frustrate employees – who quickly realize they are unattainable – but also lead to companies failing to meet their quarterly and annual targets, causing long-term visions to collapse.

This is precisely where the core task of a Business Developer lies: based on realistic and well-founded market analyses, sustainable plans and the corresponding organizational structures are developed to position the company securely for the future. Those who take this step early gain a decisive advantage – before the market forces harsh measures.