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.
What change is better: the big or the fast? I work with several companies (e.g. IT, electronics, pharmaceutical) who face a strategic shift from a transactional product proposition into a more continuous form of services. Such a business model innovation can be very impactful and can take one to several years to fully get into the DNA of the company. This timeline makes some (short term focused) managers hesitate; what change should we start now? is it really necessary to implement this big one? can't we optimize our current business model? My answer is: when you're really convinced that your market will urge you to innovate your business model, you'd better set the first step today!
The biggest challenge is to get everybody involved and keep up the speed of change. For our disruptive meeting concept Seats2meet.com we trained the staff almost daily for a period of 4 months just on communication about this new business model to all stakeholders.
Metrics of success: They can direct the scope and ambition of behaviour. At best they can allow for the agility that brings truly disruptive innovation, at worst they reduce vision to near term iterative cycles of evolution that fail to take opportunity from changing environments.
A few barriers that I experienced in client companies (SMEs):
A Chairman of the board: "Let's just concentrate on the people that we need, then everything falls in place."
A CEO: "I'll take care of that, I'll come back with a business model that will truly convince our investors." Never happened.
Entrepreneur: "I am only interested in the ROI of my new business."
On an organizational level, the biggest obstacle for a large, successful company is a reluctance to risk doing anything that may jeopardize their current model.
On a leader/personal level, their very success was likely a product of the current business model, which makes it exceeding difficult to seriously look at small, potentially disruptive competitors, who have little to risk (due to their size) but much to gain (if they succeed).
Other things are a lack of a common BMI framework and vocabulary, and getting disparite groups (e.g. R&D, Marketing, Legal, etc.) together to collaborate.
Entrepreneurs are action-driven but lack business infrastructure. The engineer developing a new product often works in isolation. SME managers, consumed with daily problem solving, lose sight of innovation. MNCs’ focus on short term goals reinforces the status quo and stifles innovation.