r&d for new business models

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