We use cookies to personalize content, to provide social media features and to analyze our traffic. We also share information about your use of our site with our social media and analytics partners. More Information

Agree
Improvement of efficiency leads to new channels and services
This small family business prefers to remain anonymous, however, we included this case study because it illustrates the gains that stand to be made by improving a company’s efficiency. The Lithuanian company was established in 2001 and is one of the country’s fastest growing gazelle companies. It is essentially a publishing business, but one that carries out a diverse range of activities such as informational projects, photography and PR work in addition to publishing via traditional and online mass media, either on commission or own risk. It focuses primarily on strengthening the Lithuania’s image through representational, tourism, and educational publications and mass media. Its customers include both businesses (e.g. performing promotional activities), consumers (e.g. publishing for bookstores), and government. Its business model takes the form of an intermediary; it reaches customers via trade fairs, festivals, and its own e-shop.

 

The company started with a whoosh and a roar, seeing rapid growth, and consequently set up multiple locations that specialised in different products and customer groups. However, this lead to increased coordination costs as well as operational problems, for instance because resources were not in the correct location or difficult to locate at all resulting in long lead times and processes that took longer than expected. It became evident not only that the business needed to relocate to a combined new premises, but also that the business model needed to be reconsidered, mainly because warehousing and logistics developed into a standalone activity that reinforced the services the company offered.

 

“We gathered together under one roof which enabled us to make decisions, develop and manage our services faster.” (CEO)

 

This also created room for other activities such as the e-shop and saw the company insource activities that had previously been performed by third parties. This company’s business model innovation process included a SWOT analysis, a customer need analyses, and a cost/gain analysis similar to deadly wasted canvas. This successfully assisted the business to consolidate key activities and free up resources, which made it possible to use alternative channels and offer new services.