Copyright

Transformative Business Models: Overview & Types

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Adaptive Leadership: Definition & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:04 Technology & Business
  • 0:52 Transformative Business
  • 1:51 Six Transformative Elements
  • 4:20 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed Speed Audio mode
Lesson Transcript
Instructor: Natalie Boyd

Natalie is a teacher and holds an MA in English Education and is in progress on her PhD in psychology.

What makes a company transformative and what do transformative businesses have in common? In this lesson, we'll look at what transformation means in business and the six elements of transformative businesses.

Technology & Business

Daniella wants to start a new business that addresses issues that many people have with getting healthy foods. Specifically, Daniella is concerned with food deserts, or places in America where people live that have few or no supermarkets and farmers' markets available to buy fresh produce. She can't force supermarkets to open up, but maybe there's something else she can do.

One thing Daniella might want to think about is the way that technology can allow businesses to match up with customer needs. Often, businesses can use emergent technologies to meet market demand in unique and transformative ways. Just think about a company like Uber or Airbnb; they connected technology with a market and disrupted their industries. What does this mean for Daniella? To understand that, let's take a look at a transformative business and the six elements that most transformative businesses have in common.

Transformative Businesses

The more Daniella thinks about it, the more she realizes that there might be a solution to the problem of food deserts in America. What if she created a platform that allowed people to order fresh produce from their local farmers through an app? The farmers could come into a food desert once a week to fill the orders that came in through the app. While they're there, they could even set up a booth. Thus, a virtual farmers' market leads to an in-person farmers' market. Win-win!

What Daniella is doing is thinking like a transformative business, which is an organization that both makes a profit and makes a difference. Transformative businesses think about transforming the industry they're in and also transforming the world at large. They often try to solve big world problems, like food deserts.

Transformative businesses can be found in many different industries, from banking to clothing to engineering. Many of them use technology to disrupt the world market, like Daniella wants to do with her virtual farmers' market. It allows local farmers to see directly to communities that need it, while allowing busy parents to order food online.

Six Transformative Elements

Besides technology, there are six major elements that many transformative businesses have in common. They are:

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support