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Gartner - Five-phase approach for resilient business continuity models

A strategic and systematic approach to strengthen the resilience of organizations’ current business models is key during the coronavirus pandemic.

Gartner - Five-phase approach for resilient business continuity models

Leaders can play a key role in the process of raising current business model resilience to ensure ongoing operations since digital technologies and capabilities can influence every aspect of business models.

Phase 1 — Define the business model:

Facing the contingency of COVID-19 outbreaks, companies should first focus on their core customers that are essential to their continuity of operations and then refer to a process of defining their current business models by asking questions focused on their customers, value propositions, capabilities, and financial models.

Although CIOs do not normally lead the process of defining business models, they should proactively engage with senior business leaders to run through 10 key questions regarding current business models. This is foundational for CIOs to actively participate in modifying current business models.

Phase 2 — Identify uncertainties:

This step can be carried out through a strength, weakness, opportunity, and threat (SWOT) analysis, or by brainstorming. Given the wide range of uncertainties and threats, this step can benefit from a heterogeneous group of participants with diverse backgrounds and interests, particularly where IT is normally involved. Companies should focus on the risks that the uncertainty poses to the components of the business model.

Phase 3 — Assess the impact:

Multidisciplinary members should form a project team to assess, or even quantify, the impact of the identified uncertainties. CIOs can provide potential impacts from an IT perspective.

Phase 4 — Design changes:

At this point in the process, the emphasis is to develop tentative strategies rather than estimate their feasibility. Selecting and executing changes will follow in the next phase. CIOs and IT should leverage digital technologies and capabilities to facilitate designed changes.

Phase 5 — Execute changes:

The decision on which changes to execute is principally a decision for senior leadership teams. The strategies for changes defined in Phase 4 provide essential input for this decision process. Senior leadership teams should select the strategies they feel most compelled to implement, which is often based on both economic calculations and intuition.

Gartner clients can learn more in the report React to the Coronavirus (COVID-19) Outbreak via Raising Business Model Resilience.”


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