This presentation was given as a webinar to The Community Roundatble in January 2015. It sketches out how Community Managers can learn to understand their company's business models, how the community fits into or aligns with the business model, and how it can be used to drive business model innovation.

1. Connecting Community and
Business Model Innovation
Renee Hopkins
Communications and Community Engagement Manager
Business Innovation Factory

2. What’s a business model?
1. A story of how an organization creates, delivers, and
captures value.
2. A network of capabilities and a sustainable financial
model to deliver value to target customers.
3. The magical intersection of a problem that matters +
a solution that delivers + numbers that work.
(Scott Anthony, Innosight)

3. How does ‘community’ fit into a business
model?
Quite simply, “community” can be a feature of one or
more of the three aspects of a business model:
1. How value is created for customers
2. How value is delivered to customers
3. How value is captured for stakeholders

4. ‘Community’ is part of a business
model when community is the
structure through which a business
creates value, delivers value, and/
or captures value.

5. Examples of community as a way to create
value:
• Co-creation:
• IBM Innovation Jams, Dell Ideastorm, LEGO,
Wikipedia, Genius, Barclaycard Ring
• Marketplace:
• Ebay, Amazon
• Social Media:
• Facebook, Twitter, Instagram

6. Examples of community as a way to deliver
value:
• Competitions:
• Netflix prize
• Recommendations/Idea Evaluation:
• Amazon, Netflix, Google
• Barclaycard Ring
• Quirky

7. Examples of community as a way to capture
value:
• Crowdfunding:
• Kickstarter, Indiegogo, Patreon, Rally
• Prediction Markets:
• Eli Lilly, Google
• Sharing:
• Uber, Sidecar

8. What do we really mean by business
model innovation?
• Innovation = a new way to deliver value to customers.
• Business model innovation = a new system for
delivering value to customers.

10. How can you help your company
understand how community
can drive business model innovation
— whether by tweaks or
transformation?

11. 1. Understand your company’s current
business model.
Don’t be daunted if you don’t already know — it’s
common for even management to have a slippery
grasp on their company’s business model.

12. 2. Understand how business model
innovation processes work.
BIF
Business
Model
Design
Process

13. 3. Understand that business model tweaks
and transformations — in fact, all
innovation — starts with a customer
need or “job-to-be-done”.
• A community manager who works directly with
customers is in a perfect position to discover these
needs.
• A community manager can understand how a
community can be better integrated into the
company’s current business model AND how the
community can serve as a lever for an entirely new
business model.

14. “My challenge to all the community
managers, builders, and strategists
out there — reclaim the term
“community” as a vital part of the
product and the lifeblood of the
business, or invent a new term
altogether.”
Christopher
Pedregal,
The
Problem
With
Community

15. Questions and Discussion

16. Thank You!
www.businessinnovationfactory.com
renee@businessinnovationfactory.com
http://linkedin.com/in/reneehopkins512
@TheBIF @Renee_Hopkins #TheBIF
The Business Innovation Factory
Connect. Inspire. Transform.