If the adage is to be believed, if it ain’t broke, don’t fix it. That means, if something has been working well, then there’s no reason to start tinkering with it.
That may apply to some things, but not when it comes to business where disruptions can happen anytime, thus rendering stagnant companies obsolete.
This is why for Edwin Bautista, president and CEO of Union Bank of the Philippines, the best time to renew a company’s business model is when there is no pressing or urgent need to do it.
“Don’t wait until you are forced to do it. Your [profit and loss] will tank,” said Bautista during the recently concluded 11th Mansmith Market Masters Conference.
This philosophy helps explain why UnionBank, being only the ninth in number of physical branches, decided to go ahead of its banking peers and go digital first, becoming the thought leader in digital transformation in banking, years before COVID-19 hit the country with a wallop in 2020.
Despite being in a highly regulated industry, UnionBank was able to innovate and change both its offering model as well as its operating model, becoming a multiawarded bank. It won prestigious awards such as Best Branch Customer Experience in Asia-Pacific at the Customer Experience in Financial Services Awards held in Singapore, beating DBS of Singapore and UOB of Thailand; Best Digital Branch Project from The Asset Triple A Digital Awards in Hong Kong; and one of the Top 14 Stunning Branch Designs from Banks Around The World by The Financial Brand.
Primer group
For those companies that have not yet revisited their business model, Bautista said there is no better time than today.
“Then full speed before competitors copy you!,” he added.
Meanwhile, Jimmy Thai, president and CEO of the Primer Group, whose core businesses are into the retail and distribution of over 150 premium consumer brands and with a presence in over 10 countries, has diversified into industrial categories like air-conditioning; textile printing and manufacturing; digital printing; building efficiency and energy management; security and fire safety solutions; and ecotours and hospitality management.
Talking about the five ways they do opportunity-seeking, he shares that they started from product (luggage) to channel (retail store: Travel Club) to business model (own brand), to market (segments and industrial businesses) and to geography (over 10 countries).
Thai shares: “Because we kept winning best distributor award in the region, we started gaining confidence and asked for regional rights.”
Thai added: “Creative marketing is just part of a business model. Throw away the old adage ‘If it ain’t broke, don’t change it,’ meaning start by looking at the business model holistically and not just at the value proposition.” —CONTRIBUTED INQ
Josiah Go is chair and chief innovation strategist of Mansmith and Fielders Inc. He is the author of the 55-video Business Model Course in Continuum Academy
(www.continuum-edu.com)