Understanding success factors and using experience correctly through success modeling
Understanding your own success factors and using your experience - How Success Modeling helps you succeed
Learn how you can benefit from the success strategies of others with Success Modeling. Leverage best practices, reduce risk, and increase your competitiveness.
We are familiar with success stories, innovative business models and creative application examples for new technologies in many industries. Yet too many decision-makers are still reluctant to take their competitors as role models, even when they are doing excellent work. This is a missed opportunity, because companies can learn from these success stories in particular – with the help of Success Modeling.
Success modeling as a corporate identity: Siemens as a practical example
Siemens implements this strategy to perfection. The specially created global platform “Siemens Innovation Ecosystem” follows the declared goal of promoting cooperation between the company itself and its partners and suppliers, as well as startups, universities and specialists worldwide, and sharing information and knowledge transparently, across industries and companies. In addition to this platform, Siemens has several sub-strategies of Success Modeling firmly anchored in its DNA.
One of these is benchmarking: Siemens actively and continuously identifies leading companies from different industries and analyzes their strategies, processes and procedures. The goal of all this is to understand what exactly makes them so successful. With the help of these insights, Siemens in turn improves its own (innovation) processes, develops new technologies and opens up further fields of application.
The second strategy is “customer co-creation“: While many companies only evaluate customer data, Siemens proactively involves its customers in its own development processes. In this way, the in-house teams identify changing customer needs faster and more precisely, and they also develop direct solutions for them. This approach enables Siemens to develop products and services that are tailored precisely to customer requirements and thus almost automatically have a significantly higher chance of success.
It is not least this openness to new approaches, inspirations and opinions, as well as the targeted promotion of transparency and exchange, that have made Siemens what it is today.
What is Success Modeling, and how can companies benefit from it?
In very general terms, success modeling is the approach of adopting the successful strategies and processes of others. Companies take their inspiration from direct competitors or from organizations outside the industry. The procedure begins with an analysis of key success factors. These findings are then adapted to the company’s own requirements and implemented as necessary. A systematic method for implementation was developed, for example, by Robert & John Dilts under the name “Success Factor Modeling“.
But how can companies concretely benefit from Success Modeling? Here are some key benefits:
- Simplified decision making: Innovation often brings uncertainty. Companies can counter this uncertainty by analyzing how competitors have overcome similar challenges. They can then use their experiences to pave their own way and make informed decisions.
- Risk mitigation: Companies can try new technologies or change their processes on their own, but such changes always come with a certain amount of risk. Why should they repeat the same mistakes that others have already made? It would be more efficient to learn from the experiences of innovative trailblazers and thus shorten the costly phase of “trial and error.” By taking their cue from success stories, companies can bring innovations to market faster and significantly reduce their risk.
- Higher customer satisfaction: An excellent customer experience is one of the decisive success factors in the market, and all companies actually strive for this. What better way than to take inspiration from the pioneers in Customer & User Experience (CX/UX)? These have already invested a lot of time and money and compiled reliable results.
- Increase competitiveness: Innovation takes time. However, companies can reduce the time required by not reinventing the wheel, but by adapting existing solutions to their specific needs. Those who rely on proven, successful strategies and processes save time and gain a competitive advantage over competitors who go about it without Success Modeling.
Companies can view Success Modeling as a valuable tool to learn from the successes of others and accelerate their own transformation. After all, adopting proven approaches and adapting them to individual circumstances can make all the difference and lead to long-term success.
Practical Guide: Success modeling in four steps
A structured approach is critical to successfully implementing Success Modeling. The following four steps provide practical guidance for companies looking to put this strategy into practice:
Step 1: Identification
Begin by identifying the critical factors that contribute to success in your industry or market. Analyze aspects such as market demand, customer preferences, product quality, pricing strategies, marketing, distribution channels, and customer service. Identify those factors that are most relevant to your business.
Step 2: Research
Look for companies that are particularly successful in the areas relevant to you. Don’t just look at your own industry, but think outside the box. Conduct market research, monitor industry trends and statistics, and study case studies and best practices. Gather valuable information that can serve as the basis for your success modeling.
Step 3: Analysis
Analyze the common success factors of the selected companies. These include their products or services, pricing strategies, marketing and advertising campaigns, customer service processes, and distribution channels. Identify the specific elements that contribute to their success. These insights can help you determine relevant success factors for your own company.
Step 4: Implementation
Take the insights from the Success Modeling process and adapt successful strategies and practices to your business. In doing so, consider your individual needs. This may include changes in product design or pricing, investing in marketing and advertising campaigns, improving customer service, or exploring new sales channels. Be flexible and experiment to optimize your business activities based on successful models.
A plea for cross-industry success modeling
In fact, Success Modeling can not only be successfully applied across industries, but it is here that it unfolds its full potential. For this, we only have to look in the direction of the automotive industry, which has long been considered one of the most important pioneers for various technologies and processes: The assembly line originally developed by Ford became a groundbreaking innovation within a short period of time, which immediately found its way into many industries related to transportation, logistics and, above all, manufacturing.
This industry also set standards in another area for a long time, namely the topic of customer experience: The large car dealerships were among the first to offer comprehensive personalization options for customers. What color should the new family car be and what interior trim? This first-class service has inspired numerous companies from different industries to adopt similar approaches. Today, broad configuration options are virtually part of the standard repertoire of popular computer manufacturers such as Apple, Dell and Co. But even in the apparel industry, brands such as Nike offer their customers the opportunity to design and customize their own shoes. Via the “Nike by You” platform, for example, Nike customers can add colors, materials, designs, and even personalized texts to create a unique and customized pair of shoes. This is how successful Success Modeling works!
A real opportunity for innovation
Success Modeling offers companies a valuable and long-proven opportunity to learn from the experiences, mistakes and, above all, success strategies of others and adapt them to their own needs. Siemens is an impressive example here and proves that the strategy works.
By using the insights of others and applying them to their own activities, companies can increase their competitiveness and open up new avenues for success and growth.