Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Business Model Innovation            The Ambidextrous OrganisationYou engage in                                           ...
Introduction                                             Existing companies implement                                     ...
THE CHALLENGE                                            The ambidextrous organisationCompanies will need an organisation ...
Thinking about Business Models                                          in existing companies is slightly                 ...
On the left hand side you have one or several                   existing businesses models,                   to ensure th...
The left hand side is all about executing and  improving known Business Models incrementally.In such a known environment i...
On the right hand side you haveone or several new BM that thecompany is trying to develop.                      The models...
The company is still developing agood market understanding. Predictions such as sales forecasts or growth numbers are prac...
The rules of the game are almost totally different     on the opposite ends of the continuum.                © Lab MindZer...
For existing business models         and their improvement you         make business plans with         performance projec...
When it comes to new BM detailedplans are worthless.Projections don’t make sense for yetunproven Business Models.         ...
You learn from thesecontinuous small bets.                               They will allow you to                           ...
ConclusionExisting and new business models require completely different thinking, rules and organizational structures t...
THANK YOU!   LAB MINDZEROhttp://mind-0.blogspot.pt/          © Lab MindZero , 2013
Upcoming SlideShare
Loading in …5
×

Managing Innovation in the XXI Century - Ambidextrous organizations

3,773 views

Published on

Thinking about BM in existing companies is slightly different than in a start-up.
The best way to look at it is by drawing a continuum between improving existing businesses that a companies has and inventing new businesses that companies plans to build.
On the left hand side you have one or several existing businesses models.
The company knows them well and the entire organization is trimmed to execute and incrementally improve them.
Here the company operates in a known environment with existing customers and a good understanding of the market.
In such a known environment it is possible to make relatively accurate forecasts about sales and predictions about growth.
Hence the left hand side is all about executing and improving known BM or improving them incrementally.

On the right hand side you have one or several new BM that the company is trying to develop.
The models are far from proven and the organization is still experimenting with them. Contrary to the improve-end in the continuum, inventing is usually done in an unknown environment.
Predictions such as sales forecast or growth numbers are practically impossible to make at the early stages. The company is still developing a good market understanding.

Hence the right hand side is all about the search for Business Models that work.
The rules of the game are almost totally different on the opposite ends of the continuum.
For existing business models and their improvement you make business plans with performance projections.
You evaluate people on how they meet those projections.
Failure is not an option.

When it comes to new BM detailed plans are worthless. Projections don’t make sense for yet unproven Business Models.
What you really want to do is perform many small experiments to test the hypothesis of your unproven BM.
You learn from these continuous small bets.
Which will allow you to improve, adapt or pivot your BM until you make sure it will really work.
Existing and new business models require completely different thinking, different rules and different organizational structures to succeed.
Are you able to play both games in parallel?

Source: Strategyser.com

Published in: Business

Managing Innovation in the XXI Century - Ambidextrous organizations

  1. 1. Business Model Innovation The Ambidextrous OrganisationYou engage in You engage inenough exploitation enough explorationto ensure current to ensure future viability”.viability. © Lab MindZero - source: strategyser.com
  2. 2. Introduction Existing companies implement known business models. Focusing on improving existing BM is not enough.To assure their survival and growth, companiesneed to invent new business models.This challenge requires entirely neworganizational structures and skills. © Lab MindZero - source: strategyser.com
  3. 3. THE CHALLENGE The ambidextrous organisationCompanies will need an organisation (strategy andstructure) that can do two things at the same time: Exploit, by improving existing business models, and  Explore, by inventing (new and disruptive) business models. © Lab MindZero - source: strategyser.com
  4. 4. Thinking about Business Models in existing companies is slightly different than in a start-up.The best way to look at it is by drawing a continuum between: Improving existing businesses that a companies has, and  Inventing new businesses that the company plans to build. © Lab MindZero - source: strategyser.com
  5. 5. On the left hand side you have one or several existing businesses models, to ensure the organization’s current viability. The company knows them well and the entire organization is trimmed to execute and incrementally improve them.Here the company operates in a known environment withexisting customers and a good understanding of the market. © Lab MindZero - source: strategyser.com
  6. 6. The left hand side is all about executing and improving known Business Models incrementally.In such a known environment it is possible tomake relatively accurate forecasts about salesand predictions about growth. © Lab MindZero - source: strategyser.com
  7. 7. On the right hand side you haveone or several new BM that thecompany is trying to develop. The models are far from proven and the organization is still experimenting with them. Contrary to the improve-end in the continuum, inventing is usually done in an unknown environment. © Lab MindZero - source: strategyser.com
  8. 8. The company is still developing agood market understanding. Predictions such as sales forecasts or growth numbers are practically impossible to make at the early stages. Hence the right hand side is all about the search for business models that work. © Lab MindZero - source: strategyser.com
  9. 9. The rules of the game are almost totally different on the opposite ends of the continuum. © Lab MindZero - source: strategyser.com
  10. 10. For existing business models and their improvement you make business plans with performance projections.You evaluate people on howthey meet those projections. Failure is not an option. © Lab MindZero - source: strategyser.com
  11. 11. When it comes to new BM detailedplans are worthless.Projections don’t make sense for yetunproven Business Models. What you really want to do is perform many small experiments to test the hypothesis of your unproven BM. © Lab MindZero - source: strategyser.com
  12. 12. You learn from thesecontinuous small bets. They will allow you to improve, adapt or pivot your Business Model until you make sure it will really works. © Lab MindZero - source: strategyser.com
  13. 13. ConclusionExisting and new business models require completely different thinking, rules and organizational structures to succeed. Are you able to play both games in parallel? © Lab MindZero - source: strategyser.com
  14. 14. THANK YOU! LAB MINDZEROhttp://mind-0.blogspot.pt/ © Lab MindZero , 2013

×