ACCA: Six emerging models transforming modern business

Tuesday 31 January 2017

As we begin 2017, businesses will need to face a host of new challenges in order to make healthy profits and continue to grow. 

Along with the uncertainty surrounding Brexit, companies will need to identify how to tackle significant changes within their sector, including the development of new technology and trends. 

The Association of Chartered Certified Accountants (ACCA) has produced its Business models of the future: emerging value creation report, which has identified six patterns that could evolve how businesses transact. 

Firstly, ACCA outlined the importance of platform-based businesses such as AirBnB, mass customisation 2.0, including OpenDesk, and Frugal, which applies to research and development processes that open up new market segments for high quality services priced at a low cost. 

The remaining three business models are modern barter, pay what you want offers and mega-hyperlocal. Modern barter refers to platforms allowing users to exchanges goods and services, whereas the pay what you want approach enables customers to set the value of items. 

Lastly, mega-hyperlocal is defined by businesses that flourish due to a deep connection to their community. 

Report author and senior business insights manager at ACCA, Jimmy Greer, said: “We’ve heard a lot about the disruptive role of technology in the sharing economy. This report illustrates the way in which technological innovation is enabling a transformation in the way in which business and the consumer interact. 

“Technology is only part of the story here. It is also about the ability of entrepreneurs and innovators to access new networks, capital and ecosystems amidst a challenging economic climate and in doing create new sources of lasting value.”

Mr Greer went on to say that new models face key challenges, with recent rulings around the world showing how these impact conventional regulatory barriers. 

He added that professional accountants will play a key role in start-ups and larger organisations that are looking to understand more from the new business models. 

The advice and experience of accountants will be extremely helpful for businesses looking to assess value proposition, value creation and value capture opportunities, Mr Greer noted.

If companies do not have the money or resources to pay and train a new full-time employee, a freelance accountant could prove to be especially useful, as they can ensure all records are kept properly and within the law to avoid fines and reputational damage. As these professionals come in with an abundance of experience, businesses may also see an uptick in productivity. 

By Victoria McDonnell

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