April 24, 2012
Blockbuster’s executives saw Netflix coming. Yet they stuck with their bricks-and-mortar business model, losing billions in shareholder value. They were “netflixed.”
Business models just don’t last as long as they used to. Historically, CEOs have managed a single business model over their entire careers. Today, all organizations must be capable of designing, prototyping, and experimenting with new business models. The Business Model Innovation Factory provides leaders with the survival skills to create a pipeline of new business models in the face of disruptive markets and competition.
Business model innovation is a team sport. It requires all of us to build stronger collaboration muscle and become more comfortable with and much better at connecting across silos, disciplines, and sectors. The Business Model Innovation Factory provides innovators with a set of fifteen actionable principles to guide business model innovation efforts, including:
- Realize that you are catalyzing something bigger than yourself
- Build purposeful and flexible networks
- Make systems-level thinking – and action – sexy be creative and engaged in designing the core models the drive businesses, institutions, industries, and cultures
- Passion rules – exceed your own expectations and take risks with confidence
- Be an inspiration accelerator and inspire many toward the end game: transformation
Innovators need to experiment and embrace the art of discovery. Innovation requires that you get off the whiteboard and into the real world. They are, you’ll discover how to design for this user-centred world. Don’t get netflized. Make your organization a business model innovator and stay competitive in today’s turbulent world.
Saul Kaplan is the founder and chief catalyst of the Business Innovation Factory (BIF), a real-world laboratory for exploring and testing new business models and social systems. BIF has attracted a global community of over 5,000 innovators and organizes the internationally renowned BIF Collaborative Innovation Summit. Saul shares his innovation musings on Twitter (@skap5) and his blog (It’s Saul Connected), and as regular contributor to the Harvard Business Review, Fortune, and Bloomberg BusinessWeek.