Using The Business Model concept and The Business Model Innovation process for the development and guidance of a transistion process

Hi All.

For my doctoral studies (I just started with them...) I am looking at the use of the business model (BM) and the innovation (BMI) process to support the transistion process in a company (e.g. from products to services).

Has anyone used the BM and BMI for a transistion process (or change management) in practice? What is your experience? Is the concept useful? How did you use it?

Thank you for your comments and thoughts. Eugen

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Hi there Eugen

I am working in one of the largest government departments of the federal government in Canada (GC) that is, in part, the central procurement service for the GC. I am leading the project to develop a new business model with a five to seven year window for the to-be model. We have been working with Alex and using a lot of the material discussed in the hub to guide this project.

In an earlier discussion forum - How do/did you use our Business Model Innovation Approach? - in January, I posted a lengthy description of how we used the BM approach in changing the business. I won't repeat that post here, but it is still available under the forums list.

Since that post we have addressed moving forward into a planning stage (using Strategy Maps) on some of the mandated changes in that model. We massaged the presentation of the prototypes, making them more graphic and more focussed in their information. We are now on a cross-Canada tour discussing the prototypes with operations people in regional offices. That tour is a pre-cursor to gather input for a June planning session where the senior managers of the department will be deciding the final to-be business model.

In each of the sessions with the operations people we present the building blocks of the model and the prototypes. After some discussion and clarification we hold a 'voting' session where the participants tag the proposed changes green-yellow-red, and we then discuss the implication of their vote. Interestingly the vote doesn't always reflect the conversation preceding the vote. That has to be discussed also.

Check out the previous forum. If there are any questions I will be glad to respond.
Hi Mike

Thank you, that are informations I am actually looking for (I just had to write another assignment). I somehow have to convince my supervisor, that my theory about transition and business model is also useful in practice.

Regarding the topic I found a quite interesting paper by Pateli and Giaglis. The methode used there shows analogies to what you did:

Pateli, A. G., & Giaglis, G. M. (2005). Technology innovation- induced business model change: a contingency approach. Journal of Organizational Change Management, 18(2), 167-183.
Hi Eugen,

Working in an online media advisory and early-stage investment company, I have been using the Business Model Canvas for business concept ideation and formulation within digital media, entertainment/cinema providers, start-up in display advertising, and strategic analysis in general.

Generally I find the right-sided components in the model - distribution, customer relationship, value proposition, and customer segment - useful for describing the transaction from value chains into value networks (i.e. many online businesses serving two or more customers). However, I struggle visualizing this. I do not find the customer segment, which is describing one or more customers in the same component, intuitive for visualizing two or more value propositions delivered to two or more customers.

My experience calls for the need to model the clients existing business models before heading in to the opportunity assessment phase. This is mainly to avoid confusion with the clients and help them understand the method and canvas themselves. Such the framework works excellent for "executive learning" purposes. Furthermore, I am in search for structured ways for documenting and presenting the findings after finishing the client workshop. Excel and alike have been unsatisfying. Next, I look forward to test the BM Designer when working with clients (http://bmdesigner.com/).

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