R&D For New Business Models

R&D For New Business Models Creating a Real World Laboratory for Business Model Innovation

Saul Kaplan Chief Catalyst Business Innovation Factory

In Toronto-Ese…… sLAB #ublecture on BIF at OCAD by @skap5

Ideas That Keep Me Awake:

There’s always a better way.

Ideas That Keep Me Awake: We need systems-level innovation, not

incremental changes to deal with the real issues of our time. Little things like health

care, education, and climate change

Ideas That Keep Me Awake: Experimentation is the key to getting new systems ideas off the white board and on

to the ground.

The Good News: Innovators thrive during turbulent times.

The Bad News:

Innovation has become a buzzword.

How Do We Get Below the Buzzwords?

A simple definition: Innovation is a better way to deliver value.

Invention vs. Innovation

Business Model Definition: A business model is a network of capabilities and a sustainable financial model to deliver value to target customers.

Business Model Definition:

How can we accelerate the pace of business model innovation?

How do we help organizations create new, networked business models that deliver solutions to the big problems of our day?

Business Model Innovation:

The opportunity to explore and test new networked business models is influenced by four key market drivers:

--Globalization --Enabling Technology --Chains to Networks --Creating Value Networks

Globalization:

Has enabled organizations to reconfigure capabilities across the globe into new networked business models.

Enabling Technology: Technology is no longer a limiting factor for business model innovation.

It is us humans and the organizations we live in that are both stubbornly resistant to change

Chains to Networks: Value creation is as much a function of a knowledge network as a function of a physical supply chain.

Shifting Economies of Scale

Creating Value Networks Realign capabilities to provide customized value to the individual.

Creating Value Networks

Business Model Innovators Tony Hsieh - CEO, Zappos.com

Business Model Innovators Alph Bingham - Innocentive Founder

Business Model Innovators Robert Ballard - Titanic Discoverer

Business Model Innovators Col. Dean Esserman - Providence, RI Police Chief

Business Model Innovators Dennis Littky - Big Picture Co., Met School

Business Model Innovation

How do we make business model innovation more predictable and easier to manage?

Underestimate the Importance

Business model innovation as a source of competitive advantage has been underestimated by most leaders.

Underestimate the Difficulty

Challenges of business model innovation have also been underestimated by leaders…death by 1000 initiatives.

Leaders Are Starting To Get It

Executives are realizing that business model innovation is an imperative and will have to be done in a different way.

Leaders Are Starting To Get It: Innosight business model innovation study:

N=260

95% Important

55% Conceptual understanding

40% Tools and ability to implement

Unmet Need: R&D for New Business Models Organizations need a safe and manageable environment to explore and test new business models.

Getting to the Network Effect Faster and Cheaper

BIF: The Real World Lab

A community of innovators collaborating to explore and test better ways to deliver value.

BIF: The Real World Lab An actionable platform for systems level experimentation in areas of social importance including health care, education, and energy independence.

The BIF Model:

BIF Model: Think Connected to the best thinking on business model innovation

BIF Model: Learn Experiential learning is key. We learn from the experts, and each other.

‘09 Schedule Steven Johnson: Biftalks Diane Hessan: Engage!

Continuum: Design for Social Impact Clay Christensen: Disruptive Innovation

BIF-5

October 7-8 2 days, 25 storytellers, limited to 300 people

Co-hosted by: Bruce Nussbaum Bill Taylor

BIF Model: Do

BIF’s Experience Labs enable experimentation with less risk and less disruption to current operations.

Nursing Home of the Future: Platform to design and test new elder care solutions in a real world environment.

BIF Model: Connect Building a community with emphasis on sharing stories and ideas.

BIF Innovation Story Studio hosts hundreds of videos and stories of real world innovation.

BIF Model: Connect Active in social media space with Twitter, LinkedIn and other digital tools.

Member and Partner proposition enables deeper participation.

“Innovators have a point of view to share and know that they are missing something” -BIF Research Advisor Roger Martin

Thank You. Please Connect

www.businessinnovationfactory.com

Skap@businessinnovationfactory.com

http://linkedin.com/in/saulkaplan

http://twitter.com/skap5