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

How can we accelerate the pace of business model innovation? How can we get ideas off the whiteboard and onto the ground quickly and more cost effectively? How can we enable collaborative innovation?

How can we accelerate the pace of business model innovation?

How can we get ideas off the whiteboard and onto the ground quickly and more cost effectively?

How can we enable collaborative innovation?

The opportunity to explore and test new networked business models is influenced by four key market drivers: Globalization Invention to Innovation Chains to Networks Intention Value Networks

The opportunity to explore and test new networked business models is influenced by four key market drivers:

Globalization

Invention to Innovation

Chains to Networks

Intention Value Networks

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

Invention to Innovation: technology is no longer a limiting factor for business model innovation

Product Innovation Business Model Innovation Massive/ Breakthrough Disruptive/ New System Marginal/ Incremental Significant/ Immediate Qualitative/ Perceptual Additive/ Complementary Displacing/ Substitute Systemic/ Wide Ranging Better Mouse Trap New Paradigm for Controlling Mice Better Way to Create Make, and Sell Today’s Mouse Trap Tweaks

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 from… to … Command and Control Share Taking Physical Assets Functional Silos and Empires Size Distributed Management Market Making Knowledge Assets Cross Functional Work Teams Flexible Capabilities

Intention Value Networks are possible which realign interests to provide value to the individual

Intention Value Networks Travel and transportation Media and entertainment Education Clothing Shelter Food Quality of Life Home security Information security Safe workplace Community security Homeland security National defense Security Tax planning Financial planning Insurance Capital access Investments Cash management Wealth Fitness and nutrition Personalized medicine Treatment Diagnosis Disease recognition Disease understanding Health

Business Model Innovation A key unmet need for business executives is to make business model innovation more predictable and easier to manage: Underestimated Importance Underestimated the Difficulty Unmet Need: R&D for New Business Models BIF the Real World Laboratory

A key unmet need for business executives is to make business model innovation more predictable and easier to manage:

Underestimated Importance

Underestimated the Difficulty

Unmet Need: R&D for New Business Models

BIF the Real World Laboratory

Importance of business model innovation as a source of competitive advantage has been underestimated by business executives

Difficulty of business model innovation has also been underestimated by business executives…death by 1000 initiatives

Lessons Learned: Executives now realize business model innovation is an imperative and will have to be done a different way

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

Birth of a Scale-Free Network

Getting to the network effect faster and cheaper Cost ($) Net Cost Net Benefit Costs Benefit Fewer Users Lower Cost Number of Users

Getting to the network effect faster and cheaper

BIF: Real World Lab Non-profit organization launched in 2005 to create a real world laboratory where innovators can explore and test new business model ideas. Mission is to enable collaborative innovation….public-private partnerships in healthcare, education, energy independence, public safety, and quality of life Create a safe and manageable environment to get new business model ideas off of the white board and on to a real world test bed. A neutral environment where innovators can collaborate without disrupting current operations.

Non-profit organization launched in 2005 to create a real world laboratory where innovators can explore and test new business model ideas.

Mission is to enable collaborative innovation….public-private partnerships in healthcare, education, energy independence, public safety, and quality of life

Create a safe and manageable environment to get new business model ideas off of the white board and on to a real world test bed.

A neutral environment where innovators can collaborate without disrupting current operations.

The BIF Model: Think We share the best thinking on business model innovation

BIF Model: Learn We learn from the experts and from each other

BIF’s Experience Labs encourage experimentation in an environment that poses less risk and minimizes disruption to current operations. BIF Model: Do

BIF’s Experience Labs encourage experimentation in an environment that poses less risk and minimizes disruption to current operations.

Collaborative Innovation in Action BIF Model: Do

Collaborative Innovation in Action

BIF Model: Connect We connect by expanding a community of innovators driven by the exchange of ideas and experiences.

For more information, visit BIF at www.businessinnovationfactory.com