R&D For New Business Models
Creating a Real World Laboratory for
Business Model Innovation
Saul Kaplan
Chief Catalyst
Business Innovation Factory

In Toronto-Ese……
sLAB #ublecture on BIF at OCAD by
@skap5

Ideas That Keep Me Awake:
There’s always a better way.

Ideas That Keep Me Awake:
We need systems-level innovation, not
incremental changes to deal with the real
issues of our time. Little things like health
care, education, and climate change

Ideas That Keep Me Awake:
Experimentation is the key to getting new
systems ideas off the white board and on
to the ground.

The Good News:
Innovators thrive during turbulent times.
The Bad News:
Innovation has become a buzzword.

How Do We Get Below the
Buzzwords?
A simple definition: Innovation is a better
way to deliver value.

Invention vs. Innovation

Business Model Definition:
A business model is a network of
capabilities and a sustainable financial
model to deliver value to target customers.

Business Model Definition:

Business Model Innovation:
How can we accelerate the pace of
business model innovation?
How do we help organizations create new,
networked business models that deliver
solutions to the big problems of our day?

The opportunity to explore and test new
networked business models is influenced
by four key market drivers:
--Globalization
--Enabling Technology
--Chains to Networks
--Creating Value Networks

Globalization:
Has enabled organizations to reconfigure
capabilities across the globe into new
networked business models.

Enabling Technology:
Technology is no longer a limiting factor for
business model innovation.
It is us humans and the organizations we
live in that are both stubbornly resistant to
change

Chains to Networks:
Value creation is as much a function of a
knowledge network as a function of a
physical supply chain.

Shifting Economies of Scale

Creating Value Networks
Realign capabilities to provide customized
value to the individual.

Creating Value Networks

Business Model Innovators
Tony Hsieh - CEO, Zappos.com

Business Model Innovators
Alph Bingham - Innocentive Founder

Business Model Innovators
Robert Ballard - Titanic Discoverer

Business Model Innovators
Col. Dean Esserman - Providence, RI Police Chief

Business Model Innovators
Dennis Littky - Big Picture Co., Met School

Business Model Innovation
How do we make business model
innovation more predictable and easier to
manage?

Underestimate the Importance
Business model innovation as a source of
competitive advantage has been
underestimated by most leaders.

Underestimate the Difficulty
Challenges of business model innovation
have also been underestimated by
leaders…death by 1000 initiatives.

Leaders Are Starting To Get It
Executives are realizing that business
model innovation is an imperative and will
have to be done in a different way.

Leaders Are Starting To Get It:
Innosight business model innovation study:
N=260
95% Important
55% Conceptual understanding
40% Tools and ability to implement

Unmet Need: R&D for New
Business Models
Organizations need a safe and manageable
environment to explore and test new
business models.

Getting to the Network Effect
Faster and Cheaper

BIF: The Real World Lab
A community of innovators collaborating to
explore and test better ways to deliver
value.

BIF: The Real World Lab
An actionable platform for systems level
experimentation in areas of social importance
including health care, education, and energy
independence.

The BIF Model:

BIF Model: Think
Connected to the best thinking on business
model innovation

BIF Model: Learn
Experiential learning is key. We learn from the experts,
and each other.
‘09 Schedule
Steven Johnson: Biftalks
Diane Hessan: Engage!
Continuum: Design for Social Impact
Clay Christensen: Disruptive Innovation

BIF-5
October 7-8
2 days, 25 storytellers, limited to 300 people
Co-hosted by:
Bruce Nussbaum
Bill Taylor

BIF Model: Do
BIF’s Experience Labs enable experimentation with
less risk and less disruption to current operations.

Nursing Home of the Future:
Platform to design and test new elder care solutions
in a real world environment.

BIF Model: Connect
Building a community with emphasis on sharing
stories and ideas.
BIF Innovation Story Studio hosts hundreds of
videos and stories of real world innovation.

BIF Model: Connect
Active in social media space with Twitter, LinkedIn
and other digital tools.
Member and Partner proposition enables
deeper participation.

“Innovators have a point of view to share
and know that they are missing something”
-BIF Research Advisor Roger Martin

Thank You. Please Connect
www.businessinnovationfactory.com
Skap@businessinnovationfactory.com
http://linkedin.com/in/saulkaplan
http://twitter.com/skap5