Business Model Innovation Challenges
Launch Date: 2008
Expected Wrap-up Date: Spring 2014
Innovation outside of the core provides an opportunity for growth, however, it generally requires a different business model. This ROR identifies the challenges associated with business model innovation and provides tools or approaches that induce success in innovation outside of the core. Participants should bring their perspectives on business model innovation within your company, identifying challenges you experience and potential cases for further analysis. Members can expect to gain an understanding of the challenges associated with business model innovation, insights from case studies and a perspective from other companies on their approach to business model innovation.
Through its work, the Team has identified that major business failures are proportional to hidden assumptions in planning, as opposed to major changes on the product offering.
Proposed project deliverables include:
- Process for determining how far a new business model is from your core
- Method for surfacing and testing both tacit and explicit business model assumptions
- Method for identifying the need for a new business model
- Improved Business Model Canvas (based on Osterwalder) and rationale
- Tools/methodology for populating the Business Model Canvas
- Techniques for selling a new business model to your team
The group is studying and determining solutions to business model innovation challenges by doing paired case studies in (ideally) 10 IRI member companies. Seven case studies in three member organizations have been completed. Members can help by sharing stories of companies initiating business model innovations that did and did not work.