2011-11 Innovating Business Models for New Opportunity
Innovating Business Models for New Opportunity a presentation by Kevin Riley to the 7th Annual Global Innovations in New Product Development & Market Strategy, 2011: A Frost & Sullivan Executive MindXchange November 2011
Learning objectives How can Innovation principles apply to the rigors of developing new market business models within a traditional ecosystem? Learn how Blue Cross Blue Shield of Florida has applied these principles to: 1) define market opportunities, and 2) make them a realization during a time of significant shift in market dynamics. Take Aways Guide to the application of Disruptive Innovation principles in creating new products/models in a conservative industry. How you can use Service Blueprinting in understanding value-based consumer product design.
About Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Florida (BCBSF) is a leader in Florida’s health industry. Since 1944, the company has been dedicated to meeting the diverse needs of members by offering an array of choices. BCBSF is a not-for- profit, policyholder-owned, tax-paying mutual company. Headquartered in Jacksonville, Fla., BCBSF is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. For more information concerning BCBSF, please visit www.bcbsfl.com.
Who needs Innovation? "Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth." Peter F. Drucker Health Health insurance solutions
Innovation at BCBSF BCBSF has a comprehensive Innovation practice and platform aimed at: systemically seeking out market opportunities aligned with the BIG mission and vision; receiving and responding to idea challenges from the Enterprise; utilizing the defined Innovation Process to assess, develop and prioritize new business opportunities; presenting recommendations to Enterprise champions for advancement; and navigating qualified Ideas from concept through launch as required.
Application of disruptiveinnovation principles in creating new products/models inconservative industries
Innovation for the Enterprise3 The Invention Process The Innovation Process • Comprised of new concepts (products/service • Leverages existing marketplace products do not currently exist) through a new or existing distribution channel • Generates new revenue streams in support of • Expands current customer base for both supplier diversified domains and Enterprise • Resolves/addresses current barriers to • Generates new revenue stream through consumption partnership/alliance model • Identifies key criteria: characteristics, jobs to be • Aligns product selections with targeted consumer done, circumstances (C-J-C) segments and diversified domains • Thinks expansively about business model and • Prioritizes options through financial modeling and innovation levers Enterprise value acceleration • Breaks “traditional” rules about consumption • Generates revenue through sales margins Processes align to Enterprise product/business development for evaluation and delivery ownership
Innovation as Experimentation BCBSF Innovation Lab http://www.biginnovationlab.com The Innovation lab allows us to innovate and experiment using a hands-on approach so we can create new processes and products that promote The Pursuit of Health. The Lab is understanding: new frontier devices and products for use by our stakeholders new “models” for adoption/absorption into the existing systems
Innovation Experiment Process Think! Try Again Hypothesis is False or Partially True Do Test with Analyze Ask Construct Background an results/draw Report Results Question Hypothesis Research Experiment Conclusion Hypothesis is True Experiment ArtifactWhat, How, Who & Where - Make an educated Test your Review your data State whether your Experiment ask around and consult guess about how hypothesis and summarize results support or Final Report authoritative sources this will work and your results contradict your create a material hypothesis list of business outcomes
Florida Blue A revolutionary way to connect with consumers in person about their health and health plan.Did you ever imagine a retail setting for aninsurance company where you can: Talk with a nurse about your doctor’s treatment options Find out how your benefit plan will cover a service Learn how a health savings plan can save you money Shop for a health care plan that fits you & your budget Compare costs on health care services & prescriptions Research doctors & hospitals Check your health with a personal health assessment? You can learn more by clicking here - http://www.floridablue.com/tour/
Florida Blue locations Jacksonville Pensacola Tallahassee Winter Park Tampa We have expanded the ways Floridians access and interact Palm Beach with us Fort Myers Sunrise Miami * Planned to open in 2011
GuideWell - Happier Healthier Simplified GuideWell is a new direct to consumer online health and wellness retail company from the BCBSF Diversified Business Unit that just launched. The mission at GuideWell is to make having a healthier lifestyle simple - and put you on the path to a healthier you. www.guidewell.com You can learn more by clicking here - http://www.youtube.com/watch?v=PcjQ0GSY1DE