Social Bus Model Innovation Arising_ShortPresentation Transcript
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
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.
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
Context and current challenge
Business Model Design case, template and process
Social Business Innovation case
Sustainable Business Model Innovation case
Summary and questions
Contacts and Credits
Why, Who, How and What If?
Sustainability and social business background
Dr Osterwalder, Natural Step, Interface ( Credits )
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
Can you really effectively share, create, explain, and innovate with text and numbers?
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
… and if creating and building a business is like a being an architect, and builder..
..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.
..then, what if..
..we had a visual, generic, intuitive, modular way of describing business models?
Example – Writing software
What if….. you change the parts, or relationships? MS Word -> Google docs
Similar target market, different features, Totally different business model
Enables Business Design process
Frame the challenge: environment, stakeholders, trends
Agree elements and relationships that describe organisation
Facilitate Analysis, and Dialogue to challenge assumptions
Take inspiration from other businesses, sectors, nature..
Be creative with the parts and the relationships: increase, decrease, eliminate, add, substitute, link
Prioritise, Decide, Share the Vision, Take the first steps
Test Success against new criteria
Share learning within the sector
Social Innovation Shelters and handouts Training and a hand-up
From Charity to Business
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
Sustainable Business Model?
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
What can we reconnect , disconnect or
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
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?
Contact [email_address] www.wearearising.org +44 (0)779 068 1043 Business Model Design and Innovation Workshop: London, October 7 th 2008 (tbc)