Business Model InnovationKaty Cook
If your business is failing, struggling, or not growing, then it is begging for innovation– Business Model Innovation. Assuming you have a clear Vision/Purpose, know your Why, and have a great team, then first
Visualize your entire Business Model. Think of business as a computer, then the Business Model is like a processor (like, “Intel Inside”). The operations, marketing & sales, and financial plans are like the apps. This
explains the importance of your Business Model and Innovation. It should be: “Simplest possible, with a sustainable competitive edge, repeatable, scalable, and profitable with great growth potential”. That is, it! Most of the very successful businesses have very simple Business Models. Check it out.
In the 21st century, Business Models don’t last as they used to, in the face of digital transformation and everchanging consumer buying behavior. This means Business Model Innovation is the new strategic imperative. The most obvious reason companies fail at Business Model Innovation is because CEOs or senior leadership within organizations are unwilling to explore new ways. Leaders are complacent and view
Business Model Innovation as competition and/or afraid of cannibalization. They are forgetting about Kodak, Nokia, Xerox, Sears, Blockbuster, Yahoo, and BlackBerry, to name a few.
Sources of innovation can originate in various ways:
1. Knowledge Push (Apple, Alphabet, Microsoft, Tesla, IBM, Huawei, Samsung, Siemens)
2. Need Pull (Amazon, Toyota, Walmart, Costco, Netflix, Ikea, P&G, Unilever, Dollar Stores)
3. Inspiration (Walt Disney, Chobani, Nike, Starbucks, 4 Rivers Smokehouse, Zappos)
4. Regulation (Pfizer, Johnson & Johnson, Moderna, Digital Currency, Lockheed Martin)
5. Accidental (Penicillin, Plastic, Microwave Oven, Post-It Notes, Teflon, Super Glue, Coca Cola, Gape Nuts cereal, Pop Rocks, NutraSweet/Aspartame)
“Change is constant. Leaders resisting change have no business being in business”.