Businesses are struggling with the burden of growing customer traffic and rising demand, as well as having to contend with rising costs.
They’re also facing new challenges in the digital age, such as the rise of mobile commerce and the rise in technology.
But a new report from the Brookings Institution says that the businesses that are most likely to thrive in this new world are those that are building business models that combine the best aspects of technology with the best elements of business practices.
“A lot of companies, the traditional ones that were already operating on a traditional business model, are doing better, and we are seeing that across the board,” said David Pimentel, the report’s author and a senior fellow at Brookings.
Pimentel and his colleagues compiled the report by combining research with interviews with a variety of business leaders and executives.
They found that the best business model is one that combines the best attributes of both technology and business practices, like being able to attract customers, grow revenue and make investments without disrupting existing operations.
The key is to find ways to make it easier for customers to use these tools.
For instance, a new type of mobile payment service called MobiPay could enable a business to accept payments for its goods and services on a smartphone or tablet, instead of the traditional way it currently does.
Pimentell said the company is already working on the technology for its new service, which would allow users to pay with their phone number and receive the payment when they walk into a store.
The idea, Pimentels said, is to provide more flexibility to customers.
“We have seen an explosion of technology, and a lot of businesses are trying to figure out how to use it effectively, so they need to find a way to do that,” he said.
Piments paper notes that a number of traditional businesses are also struggling.
In a recent survey, 54% of businesses said they were seeing declines in revenue.
That figure has declined each year since 2012.
Many of the reasons are unclear, said David Tackett, a partner at The Tacketts, a New York City-based venture capital firm that focuses on technology and innovation.
One of the key reasons is that the traditional companies have been slow to adapt to the technology, he said, and many are not equipped to adapt.
“The traditional business models are not being able be changed in the way they are being changed,” he told The Hill.
“There is a gap between how these companies are going to react and how their customers are going a different way.”
Tackett said the technology-driven businesses that have been built in the last few years have had a tough time.
“These companies are not making it easy to move into new business models and new ways of doing things,” he added.
“They are just not able to innovate.”
He said some traditional businesses may not have the ability to adapt, and instead they are forced to be more rigid and rigid.
“There is an expectation of stability that people have to adhere to,” he explained.
“This is not a normal way of doing business.”
One area that is ripe for innovation is technology, Tacket said.
“It is a way of bringing people in the door faster and getting them out of the door quickly.”
In a way, he noted, it’s an opportunity for traditional businesses to grow, even if they are struggling to do so.
“The traditional businesses that can take advantage of this are those who are able to get their customers into their stores and into their spaces faster,” he noted.
“These are the ones who can build an effective business model.”
Businesses also need to be smart about their use of technology and how they use the platform.
A survey of 1,500 U.S. small businesses by the Pew Charitable Trusts found that 71% said that they had received less than 1% of their revenue from sales generated using mobile payments, a significant increase from the previous survey.
In a survey by Pimenters, nearly half of respondents said that their business did not have a mobile payment solution, compared to 28% in 2015.
And a majority of respondents also said that it was not a great time to be using technology, while just 18% said it was a good time.
Predictably, most of the companies surveyed were in the tech and finance sectors.
Piments research found that a majority in both sectors are looking for ways to get to a business model that is more connected to their customer base, said Pimentelman.
He noted that the majority of the respondents were using a mobile app, but not all of them were.
“I think we are all learning how to be mobile app savvy, and that’s really where the future of commerce lies,” Pimentello said.
The report suggests that companies should consider a range of new business types that include mobile payments and virtual commerce, which allow businesses to sell goods and resources to consumers via their mobile devices.
They also should consider the use of new technology to increase