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  • 1. Social Business Model Innovation How to illustrate and improve business models for changing the world [email_address] www.wearearising.org Business Model Design and Innovation Workshop: London, October 7 th 2008 (tbc) With the support of Dr Alex Osterwalder at Arvetica
  • 2.
    • I think that
      • conflicting understandings of what a business is doing, or how social business works, and
      • limited awareness of the opportunities for systematic ways to improve business models
    • can constrain the success of business.
    • The open-source process tool described here, may help eliminate these barriers to the growth and impact of social businesses and the sector.
    • This presentation introduces a tool designed to
      • Allow entrepreneurs to better describe, improve and get investment in their business
      • Enable advisors to clearly illustrate the options for creating more sustainable businesses
      • Encourage faster learning and innovation within the social enterprise sector through sharing of business model innovation
    • I am looking for:
      • Feedback on what has been developed so far,
      • Advice and collaboration to develop it further, including opportunity to demonstrate this model and tool to relevant people,
      • Expressions of interest in supporting / participating in a ‘social business model innovation’ workshop in early October.
    Overview
  • 3. Menu
    • Presentation has 25 slides and will take 10 minutes to view.
    • If anything isn’t clear, please call me: +447790681043
    • There are navigation hyperlinks at the bottom of the slides.
    • I recommended viewing it as a ‘show’ , so the animations work
    • Menu
    • Context and current challenge
    • Business Model Design case, template and process
    • Social Business Innovation case
    • Sustainable Business Model Innovation case
    • Summary and questions
    • Needs
    • Contacts and Credits
  • 4. Context
    • Why, Who, How and What If?
  • 5. Who
    • Andrew:
      • Sustainability and social business background
    • Inspiration:
      • Dr Osterwalder, Natural Step, Interface ( Credits )
    • Audience:
    Advisors Entrepreneurs Sustainability consultants Funders Think-tanks
  • 6. Why
    • Why innovate and learn faster?
      • Pressure to change: technology, environment, globalisation
      • Very few businesses are currently truly ‘sustainable’
      • Start-ups who don’t want to ‘re-invent the wheel’.
    • Why Business Models ?
      • Succinctly describes logic at the heart of business:
        • Why it exists, what it does, and who for,
        • How it ‘wins’ in its market,
        • Inputs, flows and outputs of operations.
    • Why this tool and process?
      • I’ve seen confusion amongst advisors and entrepreneurs for lack of a common language
      • I’ve not seen any holistic ways to consistently be creative about re-design of business
      • IBM Global CEO survey 2006 identified business model innovation as the new strategic differentiator
  • 7. Can you really effectively share, create, explain, and innovate with text and numbers?
  • 8. If these are true…
    • Better ‘maps’ and models can be used to enable better thinking in individuals, and groups
        • E.g. Mindmaps, flipcharts, organisational charts, Lego
    • Thinking better = working smarter = better business = bigger social impact
    • Most people have prefer visual communication
        • E.g. Windows (instead of DOS), television, ppt instead of word
    • Making ‘logic’ explicit allows testing, sharing, prototyping, evaluation of options and learning
  • 9. … and if creating and building a business is like a being an architect, and builder..
  • 10. ..then, is it a bit like, this…
    • Designing and building a house, but:
    • No standard way to ‘look’ at and comment on designs (e.g. scale model, or CAD drawing),
    • No common definition of key terms and relationships
    • No modular parts that can be exchanged and ‘played’ with (e.g. walls, windows)
    • No catalogues of past designs that have worked and failed, such that we compare them can avoid repeating mistakes
    • No shared vision (visual) and understanding of what is being built!
    • And, like architecture, in business
    • The designs that are available are from the past are not sustainable, nor suitable for the future we are trying to create
        • e.g. almost all ‘sustainable’ buildings now are solar passive and oriented to fit with the landscape, making old designs that didn’t consider these factors irrelevant.
  • 11. Image
    • Light bulb
    ..then, what if..
  • 12. ..we had a visual, generic, intuitive, modular way of describing business models?
  • 13. Example – Writing software
  • 14. What if….. you change the parts, or relationships? MS Word -> Google docs
  • 15. Similar target market, different features, Totally different business model
  • 16. Enables Business Design process
    • Frame
    • Frame the challenge: environment, stakeholders, trends
    • Illustrate
    • Agree elements and relationships that describe organisation
    • Inquire
    • Facilitate Analysis, and Dialogue to challenge assumptions
    • Innovate
    • Take inspiration from other businesses, sectors, nature..
    • Be creative with the parts and the relationships: increase, decrease, eliminate, add, substitute, link
    • Implement
    • Prototype
    • Prioritise, Decide, Share the Vision, Take the first steps
      • Evaluate
    • Test Success against new criteria
    • Share learning within the sector
  • 17. Social Innovation Shelters and handouts Training and a hand-up
  • 18. From Charity to Business
  • 19. From conventional to sustainable
    • A generic template for social and sustainable business models would need to be more explicit about:
    • Where money comes from
    • Where money goes to
    • Where resources comes from
    • Where waste goes to
    • What other forms of capital (human, manufactured) are required
    • How mission affects structure
  • 20. Sustainable Business Model?
  • 21. Easier to re-design
    • Visual representation makes it easier to imagine strategy and how to make business model more sustainable
    What can we reduce or increase ? What can we add or eliminate ?
      • What can we substitute or
      • re-distribute ?
      • What can we reconnect , disconnect or
      • re-organise ?
  • 22. From To Written, numbers, spoken Different language, different expertise Only for experts Vague (metaphors, analogies) Business Model Constrained, incremental change Confusing array of terms and choices Common visual language, across expertise Precise (building blocks) Sustainable Business model Creativity and innovation for Massive change Catalogue of options for each module Understandable by all, especially entrepreneurs Visual too
  • 23. What do you think? Can you see the value in this tool and process for social business and innovation ? Can you see how it could develop? Would you like to learn more, see more detailed real-life cases, or participated in a demonstration? Would you like to join the other interested experts, entrepreneurs, funders and advisers innovators in a design innovation workshop? Do you know others who may be interested in this model and the event?
  • 24. Contact [email_address] www.wearearising.org +44 (0)779 068 1043 Business Model Design and Innovation Workshop: London, October 7 th 2008 (tbc)
  • 25. Credits
    • Dr. Alex Osterwalder, Arvetica
    • http://business-model-design.blogspot.com
    • Also informed by:
    • Interface sustainability model
    • http://interfacesustainability.com/model.html
    • The Natural Step
    • http://www.naturalstep.org.nz/tns-f-system-conditions.asp
    • Systems Dynamics http:// en.wikipedia.org/wiki/System_dynamics
    • Metabridge, Mindmapping, Visual Facilitation ( www.biggerpicture.dk www.delta7.com ) Blue Ocean Strategies