Comprehensive strategic pivots are widespread in the start-up industry. But not only startups have to rethink their business model regularly, because innovations and changes are relevant for every company. Pivoting offers the opportunity to make big economic profits. We therefore believe that it should be considered not only by young companies in and those in poor economic situations, but also by economically strong companies.
A pivot can be anything that changes your current business strategy. This vague definition already implies that many different types of pivot are possible.
When companies have suffered major economic losses, reorientation is often the only way out of the crisis. But transformation can also involve many risks. Compared to a possible company crisis, however, it often represents the smaller risk. But it is not always a case of "pivot or die". Pivoting can also be attractive for established companies. Especially when they have found a way to expand their customer base.
A zoom-in pivot occurs when a characteristic of a product becomes its own product. This can be advantageous if a feature of an entire product is very valuable to customers and could be offered more progressively if it is isolated from the overall product.
The opposite of zoom-in is zoom-out-pivot, where a complete product is built into another product. This can enormously increase the value of the entire product and open up another group of potential customers.
By solving problems and optimizing the product, the company can address new customer groups. For example, upgrading a product can make it a luxury good and therefore appeal to a different customer group.
The simplification of a product can, in contrast, result in customers with less specialist knowledge suddenly becoming interested in the product.
If a company finds that its products are no longer in demand due to increasing competition, a pivot can help. By reassessing consumer needs, ways can be found to close the existing gap between the product and the needs.
A technological pivot arises when the same product can be manufactured using a new technology or a new technology becomes part of the product. This pivot is probably one of the most widely used in recent years. In one of our other articles you will find tips for one successful digital transformation.
In any case, this type of transformation is a complex process that requires good project management. In addition to clear project management, the most difficult part of the pivot is making the decision. In one of our previous articles, you will find indicators to help you identify the need for change. Despite the risks, a pivot can offer great advantages and should not only be realized by small startups.
All pivot types have enormous potential, but inevitably lead to complex transformations in the company that require good project management. Ensuring consistent and effective project management is often the most difficult part - besides deciding on the pivot itself. In one of our previous articles you will find indicators with which you can need for change. Despite the risks, a pivot can offer great advantages and should be regularly reviewed not only by start-ups, but also by established companies.
Implementing projects successfully with Falcon
The project management software Falcon was developed by us especially for the implementation of strategy projects and helps you to successfully implement pivots with your company. With intelligent tools and smart functions, the software facilitates planning, progress control and reporting in an intuitive way. This saves all participants valuable time and allows them to concentrate on their tasks. With Falcon, each member gets a simple overview of the overall project, goals and progress.