Product and Process Innovation, while fundamental to modern business, is now playing second fiddle to the growth and relevance being driven by business model innovation.
I mean, it’s sort of exciting, isn’t it, breaking the rules? – Harry Potter and the Order of the Phoenix
Natural Entrepreneurs know all too well that a great product isn’t enough to create a beautiful business of substance, style and sustainability in a modern world. One of the key differentiators between a Natural Entrepreneur and a Natural Innovator is their ability and willingness to focus on business models. There is much we can learn from their approach that we can apply to our own ventures and personal brands to bring growth through a whole new level of value creation.
Innovation can be found and applied to 4 keys domains of business; process, product, market position and business model. Innovators thrive on the challenge of improving a product or process within a business. Business Model Innovation takes into account the entire business road-map or blueprint. It goes beyond strategy, connecting it with all aspects of how the business with create, capture and deliver value.
Business Transformation isn’t achieved through new projects or new technologies. Coupled with a compelling vision it’s the Business Model that drives innovation and transformation.
Business Model Innovation
Capture the Current Business Model, then Look for Ways to Break the Rules. Lastly, add a compelling vision.
Capture. Who are our customers? How do we create value? How to we do we go about doing business? Where do we use and create resources like time and money?
Break the Rules. If we were to change two of these areas what would that look like? What if broke the rules in our industry and changing who are clients were, what if we
Compelling Vision. Why does the business exist? What is our compelling reason, non-financially, for being in this particular business? Most Business Model Frameworks don’t address the Why, its a powerful vision that guides the business model innovation process.
Transforming a business can seem over-whelming but it needn’t be. The majority of business model innovations come from blending existing business models from other industries and being willing to act. Netflix and Uber provided products that already existed but used a different business model to deliver them, subscriptions and… Both met customer needs and wants better than what was already out there.Ikea offered product innovation through flat-packs which worked well for the time they launched. They are know going through business model experimentation and are likely to choose a subscription model to meet customer needs better, stay relevant and reinvigorate growth.
The courage to do business differently, to explore new customers with unmet needs, to deliver value in a different way to existing customers or clients. Product or service improvements won’t be enough on their own to transform a business or personal brand. True transformation or high-value growth comes from adjusting the business model.
Books aligned with this topic
frugal Innovation - how to do more with less
social physics - how good ideas spread, the lessons from a new science
business model innovation - the business model navigator