connecting community and business model innovation
TRANSCRIPT
Connecting Community and Business Model Innovation
Renee Hopkins Communications and Community Engagement Manager Business Innovation Factory
What’s a business model?
1. A story of how an organization creates, delivers, and captures value.
2. A network of capabilities and a sustainable financial model to deliver value to target customers.
3. The magical intersection of a problem that matters + a solution that delivers + numbers that work. (Scott Anthony, Innosight)
How does ‘community’ fit into a business model?
Quite simply, “community” can be a feature of one or more of the three aspects of a business model:
1. How value is created for customers 2. How value is delivered to customers 3. How value is captured for stakeholders
‘Community’ is part of a business model when community is the structure through which a business creates value, delivers value, and/or captures value.
Examples of community as a way to create value:
• Co-creation: • IBM Innovation Jams, Dell Ideastorm, LEGO,
Wikipedia, Genius, Barclaycard Ring • Marketplace:
• Ebay, Amazon • Social Media:
• Facebook, Twitter, Instagram
Examples of community as a way to deliver value:
• Competitions: • Netflix prize
• Recommendations/Idea Evaluation: • Amazon, Netflix, Google • Barclaycard Ring • Quirky
Examples of community as a way to capture value:
• Crowdfunding: • Kickstarter, Indiegogo, Patreon, Rally
• Prediction Markets: • Eli Lilly, Google
• Sharing: • Uber, Sidecar
What do we really mean by business model innovation?
• Innovation = a new way to deliver value to customers. • Business model innovation = a new system for
delivering value to customers.
How can you help your company understand how community can drive business model innovation — whether by tweaks or transformation?
1. Understand your company’s current business model.
Don’t be daunted if you don’t already know — it’s common for even management to have a slippery grasp on their company’s business model.
2. Understand how business model innovation processes work.
BIF Business Model Design Process
3. Understand that business model tweaks and transformations — in fact, all innovation — starts with a customer need or “job-to-be-done”.
• A community manager who works directly with customers is in a perfect position to discover these needs.
• A community manager can understand how a community can be better integrated into the company’s current business model AND how the community can serve as a lever for an entirely new business model.
“My challenge to all the community managers, builders, and strategists out there — reclaim the term “community” as a vital part of the product and the lifeblood of the business, or invent a new term altogether.”
Christopher Pedregal, The Problem With Community
Questions and Discussion
Thank You!
www.businessinnovationfactory.com
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