On Demand Business Model: The GO-TO choice for start-ups
It is rightly said that “Necessity is the Mother of Invention”. But if it twist it a bit according to the digital era, it will be “Time Management and Profit are the Mother of Digitization.” People nowadays are so much occupied with their work and routine; they are always searching for an easy way out for their day to day activities. Consumers are drawn towards the digital platforms and are habituated of being served instantly and it is all because of the Digital Era.
All one needs in this digital era is a Smartphone and cash! You don’t even need to move from your couch to get your things done. You are hungry, get food delivered instantly, you need to get your shower fixed, get plumber instantly, you need to wash your car, get your car washed instantly at home and endless such services are available online now! Time is not far when you could get someone instantly to takeout your trash. While you might be laughing on this idea, some might have already started strategizing on it!
So, what is this concept called? Is it just a recent trend? Who started it? How can one use it for their business? And what do one need to do to achieve such business model? All your answers are just an instant scroll away:
What is this phenomenon called?
This global phenomenon is called On Demand Business Model, it is a combination of digitization and offline services to organize an unorganized sector and provide instant service or product at most economic rates.
Who started On Demand Business Model?
On Demand Business Model was first successfully implemented globally by Uber. One can book their cab through taxi app on their couch and get a taxi at their desired time and place at cheapest possible fares. The On Demand app then caught the global eye and people started implementing the model for all their businesses! It was like a domino effect on stirring up every conventional business models.
But, people lack imagination and are just replicating the Uber business model and are miserably failing. Even today, the most common domains approaching for On Demand Business Model are Logistics app, Transportation app and Food Delivery app. So if you are thinking of getting into these domains, understand that you are about to face a wide and hefty competition in the market.
How can one opt for On Demand Business Model for their conventional business?
While you might have already started constructing the On Demand model by now in your mind, you must calm your horses because there is a certain process or one can say a checklist of tapping into the On Demand Business Model.
• First and foremost what you need is to determine whether your traditional marketplace is having that pain point or the market gap to enrol On Demand Business model or not. And if you have such services that needs acceleration and digitization, only then you can move forward with On Demand Business Model.
• To understand the market better, you need to know your target audience. Start getting feedbacks about your business, meet end users and determine where they feel your service can improve.
• Once you determine what service can be provided instantaneously and at economic rates, start arranging for the resources that will handle the offline services. Like delivery boys, coordinators, professionals etc. Start making tie-ups and contracts with them and build a team ready for the On Demand business model.
• Also, if you are the first one to take the initiative, keep it a closed loop as such news can spread like wild fire in the forest and you can lose your first mover advantage. And if you are not the first one, you need to make complete analysis of the current competitor models, make some room for innovation, target on the pain points that they are missing and hit them hard with your new and innovative business model.
• Once all these things are sorted, keep your customer or end user in the centre and build a digital architecture of the application or web platform that you need to reach the cosmopolitans of the earth. By keeping customer as the priority, you will be able to build an architecture that is user friendly and easy to operate.
• Having an idea and a business model is not enough! You need to create traction by using all the marketing
tactics. And marketing On Demand Business model like garnishing a perfect dish, once you gather all the necessary ingredients and prepare your dish, you need to platter it with discounts and coupons to attract new users, splash it with dash of codes to retain old customers and keep their interest rejuvenated for your business and put in extra toppings of loyalty bonus to make your users become loyal towards your business.
So, this is how you can incorporate On Demand Business Model for your business. But, you must make sure you search for partners and not workers for your business. Team up with experts to get the best of all the aspects of the model and make them a part of your business to keep their esteem and personal interest high.
So, this is all one need to know about On Demand Business Model and how one can incorporate it in their traditional marketplace to take the market with a storm and gain an edge over the competition. So, wear your cap of innovation, ignite the fire of profitability, put the marketing pedal to the metal and participate towards the race of making your business a grand success.