In my work with non-profit organiza- I have found that the management In my experience with a large Archive, 1. Not knowing: What is a business As an Internet marketer for 15 years I've Within large multinationals it is key to On an organizational level, the biggest Often times, companies design an
tions, the biggest obstacles to business and key employees in many SME the biggest hurdle was to make them model? What is business model innova- seen new business models live and die. create cross-functional understand- obstacle for a large, successful company innovative business model, but do a
model innovation are 1. inability to
understand the existing business
companies lack a common framework
and language for discussing Business
understand that even an archive has a
business model. We overcame this by
tion? 2. Not able: How to innovate a
business model? 3. Not willing: Why The key for the ing and synergies. Business Model
Innovation does not hold itself to the
is a reluctance to risk doing anything
that may jeopardize their current model.
poor job of constructing a compensation
structure that is properly aligned with
model, 2. lack of a language to talk Model Innovation. They do not have the starting a small project and showed should I innovate my business model? Is winners was that organizational constraints that the On a leader/personal level, their very the model and its objectives.
about business model innovation and theoretical background, but they are es- them this would affect their current there a sense of urgency? 4. Combina- people in it experience. For successful success was likely a product of the Andrew Jenkins, Canada
3. counterproductive constraints on sential to the process because they are model. tions of the above the major stake- execution it is key have all disciplines on current business model...
imagining the design of new business the ones who know the business. Harry Verwayen, Netherlands Ray Lai, Malaysia board and interconnected! Jeffrey Murphy
models. Michael N. Wilkens, Denmark Bas van Oosterhout, Netherlands
Jeff De Cagna, U.S.
"If it ain't broke, SUCCESS
GET EVERYBODY In my experience,
The management of an SME (wood
manufacturing industry-WMI) did not
INVOLVED the biggest ob- model. don't fix it" prevents companies from asking them-
and keep up the speed of change.
begin changing its business model
OF SUCCESS: For our disruptive meeting concept stacle is failure to Stephanie Diamond, U.S. thinking. Established companies stick
to current ways of doing business until
selves how their business model could
be innovated. Organizational structures
WAY? MODELS FEAr,
until the bank no longer wanted to give
They can direct the scope and ambition
Seats2meet.com we trained the staff
change the think- it is obvious that the customers want are not typically designed for new busi-
them credit. The biggest obstacle to almost daily for a period of 4 months
of behavior. At best they can allow for something else. ness models to emerge.
business model innovation (in the WMI
case and likely every case) is the people
the agility that brings truly disruptive
just on communication about this new
business model to all stakeholders.
ing process from Ola Dagberg, Sweden Howard Brown, U.S.
who resist any changes until problems
inn ovation, at worst they reduce vision
to near term iterative cycles of evolu-
Ronald van Den Hoff, Netherlands the traditional uNcErTAiNTy
appear and need corrective actions.
linear way to holis- of executives and the board.
tion that fail to take opportunity from The companies that are the most
Danilo Tic, Slovenia The lack of candor and fear of deviating successful in continuously improving
Nicky Smyth, U.K.
1. Organizational antibodies that
attack project as resources drawn from tic and systemic. from the status-quo sets in group think.
Executives are comfortable with 'exploit' of the people vested in the current
OF lEADERSHIP the efficiency of their current business
model often get blinded by
Entrepreneurs need to make a concerted can be an obstacle. Risk management
EvEryonE their area conflicts with their business
objectives. 2. Project management effort to develop the capability to envi-
phase and not 'explore' phase, which is
unknown and hence risky.
Frontier Service Design, LLC, U.S.
and due diligence colours the perceived 'this is the
lovEs way things
Fear to take risks. As a CEO you need sion the model as a system whose parts purpose of many Boards. Where innova-
proc esses that can’t deal with risks/ Cheenu Srinivasan, Australia
courage to take a business model interact with each other and affect tion is assessed as a risk issue it's easy
are done in
uncertainties associated with bold
innovation decision. In 2005, Dutch
ideas so leaders decline or claw idea each other in a holistic and non-linear
A lack of entre- to relegate it to tokenism, especially
innovation telecom provider KPN decided to
migrate proactively to IP and thus to
back to existing comfort zone. manner.
Jeaninne Horowitz Gassol, Spain
In my experience as internet entrepre-
preneurship in the
within cultural institutions that tend
not to have championing cultures. Here our business'
until it af- John Sutherland, Canada neur and investor the biggest obstacles
cannibalize their traditional business.
are lack of vision and bad governance. organization. Innovation innovation often dies the death of a and fail to see the emergence of innova-
tive business models.
fEcts thEm. The KPN is now internationally recognized
Without good vision and governance is about taking risks, wisely. If there is no
thousand cuts inflicted by entrenched
Wouter van der Burg, Netherlands
biggest obstacle to business model as outperformer in the telco industry. critical business processes, instead of
The biggest obstacle is a belief that a company will miss the emerging room for creative insights or if people
innovation is not technology it is us Kees Groeneveld, Netherlands being placed front and centre as the fuel
models must contain every detail - industry paradigm and avoid reinventing can’t think and act outside the boundar-
humans and the institutions we live in, for future strategy.
experience shows that clients ask for the business model in time. The big 4 ies of the existing model, don’t even try
both stubbornly resistant to experimen- Anne McCrossan
a lot but settle for simplicity once they U.S. uto companies did just that” . to innovate: you will fail.
tation and change. have insight to their business. Nicolas De Santis Ralf de Graaf
Saul Kaplan, U.S. David Edwards, Canada