Mastering New Business: AI and Expertise for Sustainable Success
LiB Consulting’s 6 AI-Driven Steps for Building Adaptive and Effective Business Models
The current rate of change in the business world is rapidly accelerating. The term “Business Disruption” has been discussed for years and now impacts every industry. In the era of “AI Disruption,” artificial intelligence is becoming integral to everyone’s work. Leading business development experts are now using AI to quickly analyse and create new business scenarios, leading to the development of successful business models and strategies. LiB Consulting is one of the leading consulting firms in Japan that also uses AI to support its experts in creating new business units for its clients effectively.
Case Study: Using AI to Analyze Competitive Capabilities and New Business Directions
A tyre manufacturing company wanted to start a new business using its existing resources but lacked a clear operational strategy. LiB Consulting then utilised AI to analyse these resources by first having human analysts identify the company’s strengths. Then, they crafted prompts for AI to learn about the company’s capabilities and incorporated global business databases for preliminary data screening.
AI is able to generate over 10,000 new business ideas across nearly 100 industries, ranking them based on factors such as business suitability, market demand, and entry difficulty. With the experts’ guidance, using AI has significantly reduced the time and cost of data collection by more than half. This process took only three months.
The efficiency of AI in creating new business units is only optimised when combined with business knowledge and proper AI application. As a leading consulting firm from Japan, LiB Consulting has outlined six steps for sustainable new business development to help entrepreneurs navigate the current industry changes:
1. Setting Objectives and Goals
Organisations should start by analysing future scenarios, considering management and organisational aspects to create a “shared understanding” and “scope of interest”. This is crucial for developing new businesses that respond to upcoming changes. From setting new visions/missions and objectives to analysing emerging business models, it’s essential to consider current resources and strengths to maximise new business efficiency and ensure clear and realistic business scopes.
2. Exploring Market Issues
The goal is to explore challenges and problems in various dimensions, divided into three main areas:
- Analysis of the market environment (Environmental Analysis)
- Identification of key issues (Identification of Critical Troublesome Children)
- Evaluation of the impact of key issues and potential scenarios that may unfold (Assessment of the Trouble Child, Definition of the Scenario)
This step requires industry-specific experts and AI to analyse the environment accurately, reducing risks when starting a new business and leading to the establishment of the “Value Capsule”. A Value Capsule is a small unit of value derived from a company’s strengths, used to explore new business opportunities. For example, if a company’s asset is advanced software, the value capsule might be its unique algorithms. These algorithms can be repurposed for new products in different industries.
3. Searching for Solutions
Entrepreneurs should work with experts to gather and compare business standard data from new industries and competitors, as well as related business performance reports, to create:
- A Value Capsule for applying to related businesses, expected to give the company a competitive edge.
- Benchmark data necessary for the new business.
- Factors influencing business growth and success.
4. Business Model Hypothesis Planning
Experts will identify long-term business scopes to prioritise and systematically set business goals, resulting in business feasibility indicators that will improve the second version of the hypothesis to be more updated.
5. Planning for a Hypothetical Business Feasibility Study
This process considers three main aspects: Return, Business Risk, and Significant Impact on the Organisation. This results in a business model canvas and framework for business structure in blueprint form, helping management and employees visualise concrete operations.
6. Execution & Evaluation
The final step involves investing in and developing the business according to the plan, followed by continuous evaluation and refinement of the business model to align with economic conditions.
From the points mentioned, it’s evident that new business development involves more than just generating ideas and hoping for success. It demands a systematic process where each step is essential and interconnected. To achieve long-term competitiveness, entrepreneurs should engage consultants and industry-specific experts to bring their new business ventures to fruition.
Furthermore, LiB Consulting suggests that entrepreneurs should seek diverse perspectives from industry experts and incorporate AI to explore all possibilities in today’s business landscape. Businesses should focus on competing where they have distinct advantages rather than attempting to compete in every market. It is crucial to operate and adapt quickly, avoiding fixation on a single perfect model. Continuous insights from management and all personnel are essential to ensure stable business development in any future scenario.
For more information, please contact:
LiB Consulting Thailand
Email: info_thai@libcon.co.jp
Phone: 02-104-9153
