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.
In the public sector (government) challenges to innovation are often driven by:
- transient executive leadership who measure success in short term achievements,
- change fatigue,
- reluctant to change status quo,
- an organization that doesn’t think of itself as a business.
Imagine a business model is an complex object,
consisting of objects connected with each other,
then any change of an object also affects other objects and its values.
And if we know that a business model is only optimally if the profit curve is optimally,
then the management of the impact on the profit curve is the biggest obstacle in business model innovations - in practice.
Innovation is the synthesis of knowledge into new or unique combinations – the value proposition canvas. The biggest obstacle is a belief that models must contain every detail - experience shows that clients ask for a lot but settle for simplicity once they have insight to their business.
I have found that the management and key employees in many SME companies lack a common framework and language for discussing Business Model Innovation. They do not have the theoretical background, but they are essential to the process because they are the ones who know the business.
I have seen the biggest impediment for business value innovation is the mental models of executives and the Board. The lack of candor and fear of deviating from the status-quo sets in group think. Executives are comfortable with 'exploit' phase and not 'explore' phase which is unknown and hence risky.
The collectively shared mental model. In the 90s PC's were the emerging business model in the computer industry. DEC saw themselves as manufacturer of large computer systems. Over 1 billion US dollars was spent on developing a mainframe computer. Shortly after DEC was taken over by PC-maker Compaq.
Fear to take risks. As a CEO you need courage to take a business model innovation decision. In 2005, Dutch telecom provider KPN decided to migrate proactively to IP and thus to cannibalize their traditional business. KPN are now internationally recognised as outperformer in the telco industry.
Innovation not a part of the company culture. In many once successful companies, that do not exist anymore, individual employees have discussed at the water cooler how they saw things go terribly wrong. Yet, the collective organisation froze and was not capable to change their course and destiny.
Get your priorities right to achieve both short- and long-term goals. I believe successful companies have business model innovation altered as a continuous development strategy. Incremental development is important, but try to invest more in innovation recognized as differential or breakthrough.
the nine building blocks are generic. This is strong about the model because you can create a common language between different kind of people and can create a new model without losing in details. For futher implementation I found it difficult too found a right way because every building block is a concept on his own with his own variables and a lot uncertainties and interdepencies. Further the Kaplan and Norton sythematic is a very personal one because strong points and weakness points differ between people and without a solid basis business model it is difficult to make the right choices between the inspiring ideas. Maybe this is entrepreneurship...
In stock markets, new product-market combinations are met with scepsis, deepening customer intimacy is rewarded: Amazon’s stock underperformed for a year after the launch of the S3 strategy. Apple’s stock outperformed straight from the launch of iTunes and again at the launch of the iTunes store.