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The new strategic imperative for all organizations is R&D for new business models. The Business Innovation Factory (BIF) is creating a real world laboratory for innovators to explore and test new business models and system level solutions.
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R&D For New Business Models
Creating a Real World Laboratory for Business Model Innovation
Saul KaplanChief Catalyst
Business Innovation Factory
• How can we accelerate the pace of business model innovation?
• How can we get ideas off the whiteboard and onto the ground quickly and more cost effectively?
• How can we enable collaborative innovation?
• The opportunity to explore and test new networked business models is influenced by four key market drivers:
GlobalizationGlobalization
Invention to InnovationInvention to Innovation
Chains to NetworksChains to Networks
Intention Value NetworksIntention Value Networks
Globalizationhas enabled organizations to reconfigure capabilities across the globe into new networked business models.
Invention to Innovation:technology is no longer a limiting factor for business model innovation
Pro
du
ct
Inn
ovati
on
Business Model Innovation
Massive/ Breakthrou
gh
Disruptive/ New
System
Marginal/ Increment
al
Significant/
Immediate
Qualitative/
Perceptual Additive/ Complement
ary
Displacing/ Substitute
Systemic/ Wide
Ranging
Better Mouse Trap Better Mouse Trap New Paradigm New Paradigm for Controlling for Controlling MiceMice
Better Way to Create Better Way to Create Make, and Sell Today’s Make, and Sell Today’s Mouse Trap Mouse Trap
TweaksTweaks
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
Size Flexible Capabilities
Functional Silos and Empires
Cross Functional Work Teams
Physical Assets Knowledge Assets
Share Taking Market Making
Command and Control
Distributed Management
from… to …
Intention Value Networksare possible which realign interests to provide value to the individual
Intention Value Networks
Health Security Wealth Quality of Life
Disease understanding
National defenseCash
managementFood
Disease recognition
Homeland security
Investments Shelter
DiagnosisCommunity
security Capital access Clothing
Treatment Safe workplace Insurance Education
Personalized medicine
Information security
Financial planningMedia and
entertainment
Fitness and nutrition
Home security Tax planningTravel and
transportation
Underestimated ImportanceUnderestimated Importance
Underestimated the DifficultyUnderestimated the Difficulty
Unmet Need: R&D for New Business Unmet Need: R&D for New Business ModelsModels BIF the Real World Laboratory BIF the Real World Laboratory
Business Model Innovation
• A key unmet need for business executives is to make business model innovation more predictable and easier to manage:
Importance of business model innovation as a source of competitive advantage has been underestimated by business executives
Difficultyof business model innovation has also been underestimated by business executives…death by 1000 initiatives
Lessons Learned:Executives now realize business model innovation is an imperative and will have to be done a
different way
Unmet Need: R&D for New Business Models
A safe and manageable environment to explore and test new business models
Birth of a Scale-Free Network
Cost
($)
Net Cost
Net Benefit
Costs
Benefit
Fewer Users
Lower Cost
Number of Users
Getting to the network effect faster and cheaper
BIF: Real World Lab
• Non-profit organization launched in 2005 to create a real world laboratory where innovators can explore and test new business model ideas.
• Mission is to enable collaborative innovation….public-private partnerships in healthcare, education, energy independence, public safety, and quality of life
• Create a safe and manageable environment to get new business model ideas off of the white board and on to a real world test bed.
• A neutral environment where innovators can collaborate without disrupting current operations.
The BIF Model: Think
We share the best thinking on business model innovation
BIF Model: Learn
We learn from the experts and from each other
• BIF’s Experience Labs encourage experimentation in an environment that poses less risk and minimizes disruption to current operations.
BIF Model: Do
• Collaborative Innovation in Action
BIF Model: Do
BIF Model: Connect
We connect by expanding a community of innovators driven by the exchange of ideas and experiences.
For more information, visit BIF at
www.businessinnovationfactory.com
