Here your last chance to get some visibility in the book. It is the last participatory double-page section dedicated to knowledge and experience from members on the Hub. The best contributions will feature in the print version!
Share your experience on what the biggest obstacles to business model innovation are! We prefer experience over opinion ;-)
speak about something you experienced
address relevant issues
if you want you can give a hint how you overcame that obstacle (but it has to fit the below "limited space rules")
provide a bit of context (e.g. was it in a start-up, in a multinational or a SME)
Your answer should be maximum 50 words and 300 characters (including spaces). Longer answers will not be considered. We want to fit a maximum of contributors and their experience on this double page.
Everyone loves innovation until it effects them. The biggest obstacle to business model innovation is not technology it is us humans and the institutions we live in, both stubbornly resistant to experimentation and change.
The speed at which the market moves is the biggest obstacle to business model innovation at my start-up firm. Having developed an Innovative product and being able to charge a premium for it quickly disappeared when an industry leader decided to price a similar product at commodity prices.
In my experience as internet entrepreneur and investor the biggest obstacles are lack of vision and bad governance. Without good vision and governance a company will miss the emerging industry paradigm and avoid reinventing the business model in time. The big 4 U.S. uto companies did just that” .
Nicolas De Santis
Alex, here are the top 3 biggest obstacles to business model innovation that we typically see. Please feel free to use any combination of them.
Current success prevents companies from asking themselves how their business model could be innovated.
Organizational structures are not typically designed for new business models to emerge.
Many organizations don't understand their customers well enough to design new business models that address their emerging needs.
Our teams are oriented toward the services they are responsible for managing or creating; business model design is a secondary concern. Introducing the business model design tools and approach works when the topic naturally arises, and then describing it in the language of service design work that is already well-understood.
In my work with non-profit organizations, the biggest obstacles to business model innovation are 1) inability to understand the existing business model, 2) lack of a language to talk about business model innovation and 3) counterproductive constraints on imagining the design of new business models.
The obstacle in business model innovation is a lack of entrepreneurship in the organization. Innovation is about taking risks, wisely. If there is no room for creative insights or if people can’t think and act outside the boundaries of the existing model, don’t even try to innovate: you will fail.
Here's two most prevalent from 20+ years experience across all industry types
1. Organizational antibodies that attack project as resources drawn from their area conflicts with their business objectives.
2. Project management process that can’t deal with risks/uncertainties associated with bold ideas so leaders decline or claw idea back to existing comfort zone.
As a business consultant, specifically in innovation and Intrapreneurship, I have used and enjoy the canvas model as well as many different areas of business model innovation.
I am one of many that thinks that innovation is THE KEY element to be able to compete in the future (meaning tomorrow), and therefore, having the possibility to innovate, not only in product , service and technology, but fundamentally in business models give the companies the opportunity to be successful.