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Using The Business Model Innovation Process In Reforming Government

I'm looking at the use of the business model innovation process to assist in redesigning and reforming state government structure and services. Has anyone used the business model innovation process in this way or seen others do so. Thank you for your thoughts. Nick Niemann.

Tags: Government

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Permalink Reply by Mike Lachapelle on April 24, 2009 at 1:10am

Hi Nick,

I am working with the Government of Canada (GC) and my main focus is on developing a new business model for the delivery of procurement services across the GC. Chiefly I am working in the central service organization that, in the past, has understood its role as the gatekeepers and protectors of the procurement process. Now they are looking at redefining their role as a service provider in support of the departments who do procurement in order to deliver their programs.

I initially used Alex's approach (canvas and nine components) to build and analyse the business models of a few individual business lines in the department. We used these case studies to test and adapt some of the models to a public sector domain, e.g. adapting the channel strategy model to suit a non-sales business. We then use the canvas approach to build an as-is business model of the department's acquisitions business.

In the fall last year we ran a strategic planning session using ideas like visual thinking, co-creation and brainstorming to generate ideas on how to innovate the business with a five to seven year time frame. These ideas were then streamed into 5 prototype models that serve as a menu of innovation possibilities. We streamed them to facilitate the discussion on the impacts of some of these ideas.

We are currently preparing for the next planning session in which the executive managers will be deciding on the final business model to recommend to the Deputy Minister and the Minister. The preparation will include a road show across the country to discuss the ideas and get feedback from the operations people prior to the planning session. As well we have set up a focus group of clients to get some feedback from key departments.

The biggest challenge in this process was taking an organization that is highly tactical and leading them into a new way of thinking about their business. The BMI approach has been a critical part of the success. The small amount of time we spent in doing orientation sessions and showing them the as-is business model was largely successful because of the intuitive nature of this approach. It allows one to keep the discussions in the language that operational business people can identify and be comfortable debating.

Hope this helps, happy to discuss further