My last week was spent in the UK and it was a fascinating trip when it came to advancing my thinking on innovation. Innovating through new Business Models was constantly being discussed in the meetings, workshops and the conference I attended. It is becoming a lightening rod for growth and change.
Let me try and bring together this ‘convergence’ that is going on through the different dialogues I had, that in my opinion is bringing together the strands of research and collaborative activity needed for accelerating Business model innovation.
Firstly Technology Strategy Board’s Innovate 10 conference & networking event
I attended the Technology Strategy Boards (http://www.innovateuk.org/) Innovate 10 conference. Innovate 10 is a leading networking, conference and exhibition event for businesses to meet other businesses, government and academia with the aim of making innovation happen – creating opportunity and growth for the future. Continue reading
There is such unprecedented change occurring in global business that Business Model Innovation is becoming all-pervasive in its need to understand, its real value and use in business, and why it can provide that consistent evaluation ‘power’ for exploring existing business models and competing alternatives in a more dynamic way. Today the environment has become so much more forceful and we need tools to reflect that and capture breaking opportunities.
Intensity of Change
The incumbents’ already operating within the market need to be so much more proactive in seeking to extend and change what they offer. They can’t afford to sit still, to ‘freeze’ their business model, they need to keep moving, make the model more fluid and the organisation grouped around it increasingly alert and flexible to change. If they don’t today they seem to face an onslaught of disruption through existing competitors, redefined industries, and new technology paradigms. Let alone they need to simply not allow start ups and new entrants to capture those significant value points from underneath their very noses. They need to constantly be questioning their value to the customer, known ones and those undiscovered ones that are out there lurking to engage. Continue reading
I believe the Business model canvas, presented by Alexander Osterwalder & Yves Pigneur in their book “Business Model Generation”, holds a very powerful way for Venture Capital to use in their assessments of promising ventures they are considering for investment.
Traditional pitches to VC’s are loaded with financial numbers, providing crisp, well written business plans pitched by teams oozing with optimism but much of this is still highly intangible in reality. There is often a decision made on the people chemistry more than anything else. There is nothing wrong with that if you are the lucky one, but tough on the countless thousands that face rejection after rejection for their ideas to attract the necessary funding needed to move their business forward.
Where the Business model canvas can fit in the VC pitch. Continue reading
Business model innovation is shaping up to be one of the most challenging aspects for leadership of existing business or that aspiring leaders need to fully understand. The question today being faced by many is how to transform existing business models so as to avoid that race to commoditization and decreasing shareholder value and so to provide improved value. Equally business model innovation increasingly needs to be able to reduce the threat of new competition that is constantly finding ways to undermine your present business. The Entrepreneur is snapping at your heels like never before.
Leaders need the tools, skills and experience to envision, test and implement new business models more than ever and certainly faster than ever. The worrying aspect today it seems is that many leaders are still not knowing what it is within their existing business model that ‘combines’ to make the existing profit engine of the business, those ‘value points’ that really provide the innovation opportunity to sustain or challenge their existing business models.
So what is Business Model Innovation? Continue reading