Business Model Innovation Hub

... where visionaries, game changers, and challengers discuss business models

BMI Process – the right moves at the right time?

Dear Hubbers,

after conducting some research I assume that there are major differences regarding the needed emphasis and key success factors of the BMI process depending on the situation a company finds itself in. As described in BMG that could be:

1. a crisis of the existing BM

2. the need for adaption to changing business environments by re-configuring, improving or defending the existing BM

3. generating growth by growing with a new BM (e.g. addressing unmet customer needs, alluring new customers (or both at the same time),…)

4. bringing a new technology to the market (e.g. Xerox)

5. experimenting with and exploring new BM for the future (e.g. Car 2 Go @ Daimler-Benz)

Where would you see differences in the BMI process depending on the situations stated above?

I am trying to find examples and informations (such as case studies) of successful BM Innovators (especially incumbents!) for every of the five different situations above. Do you have any suggestions?

I am very much looking forward to your comments, ideas, hints, etc.!

Best,

Georg

Tags: BMI, bm, incumbents, innovators, process

0 members like this

▶ Reply to This

Replies to This Discussion

Permalink Reply by David M. Weiss on November 24, 2010 at 5:43pm

EFFECTIVE BUSINESSMODEL ADAPTATION STRATEGIES FOR NEW TECHNOLOGY-BASED VENTURES.
(Andries et al.)
It's focussed on emerging markets, but one can transfer ideas to incumbents in developed markets.

Sounds interesting - please keep me posted on your results!

▶ Reply

Permalink Reply by Alex Osterwalder on November 27, 2010 at 12:40pm

Here are some ideas for cases in each category:

1) crisis: Nintendo Wii, Sony (3D), Apple (1997), Rolls Royce airplane engines (when they shifted towards a service model)

2) adaptation: Pomarfin (towards "left foot"), Hilti

3) new growth: Nescafé Dolce Gusto

4) bringing new technology to the market: better place, Nespresso

5) experimenting with new BMs: Amazon web services

And then obviously a lot of new business models are coming from insurgents and new actors... they have the luxury of starting from a blank sheet (Skype, CitizenM, ZipCar, etc.). It would be interesting to compare how many innovative BMs come from start-ups and how many from corporations...

▶ Reply

Permalink Reply by Georg E. A. Stampfl on November 29, 2010 at 7:33pm

Thank you for your inputs!

Any ideas/opinions on how the process (in terms of focus, key capabilities, needed resources etc.) might generally differ between the five cases?

For instance I see the BM crisis at one end and the experimentation with new business models at the other end of the spectrum. When experimenting with new BM there is for instance less pressure, more time for "learning by doing" and thus simply more ellbow room (it can be compared to a start-up situation). However, when an incumbent's BM faces a crisis, changes in the BM are needed quickly (under limited choice concerning resources, new potential paths of growth etc.) to guarantee survival of the company. I see the adaption to changing environments somewhere in the middle. Some changes loom early and in this case strategic forsight seems to play a major role in not overlooking the antecedents. Some changes even have specific dates, such as European postal deregulation.