An email from Business model innovation hub (http://bit.ly/bnTd6G) landed on my laptop that stopped me to think a little harder on the whole momentum of Business model innovation. It summarized the ‘breaking’ collaborative work going on between Alexander Osterwalder, Steve Blank, Alan Smith and Bob Dorf. This is around untested hypotheses coming out of new Business models, that need a better structured and systematic way of exploring these to test assumptions, as early as possible within the lifetime of the model.
A breaking collaboration that seems really valuable
Steve Blank has summarized this first step in the collaboration in an entry on his site www.steveblank.com under http://bit.ly/9cElPf. He stopped me in my tracks (well briefly) with the statement that the “Business model canvas was at the end of the day a tool for brainstorming hypotheses without a formal way of testing them”- “a static planning tool”- the very thing I thought the canvas was taking us away from. Continue reading
Gary Hamel is amazing. He constantly thinks about the future and lays out how to get there; he has been doing this repeatedly for years.
One quote of his seems to hit home for me especially “The real brake on innovation is the drag of old mental models. Long-serving executives often have a big chunk of their emotional capital invested in the existing strategy”
A real big challenge is changing old mindsets but how?
Today, the value of Business model innovation seems to be a critical part of breaking out of the old and finding the new avenues to growth and prosperity. The trouble today is the existing mindset of the manager is often the major block to challenging the existing business model and working towards a real change. This lack of realisation is increasingly allowing the young usurper, the entrepreneur, into seizing the opportunities and seizes the initiatives of the very growth needed by existing businesses. Continue reading
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