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starting point for business model innovation

Business Model Design Factors Specific to
and Innovation Established Organizations

Satisfy market: Fulfill an unanswered market need Reactive: Arising out of a crisis with the existing business model
(e.g. Tata car, NetJets, GrameenBank, Lulu.com) (e.g. IBM in the 1990s, Nintendo Wii, Rolls Royce jet engines)
Bring to market: Bring a new technology, product, or Adaptive: Adjusting, improving, or defending the existing business
service to market or exploit existing intellectual property model (Nokia “comes with music,” P&G open innovation, Hilti)
(IP) (e.g. Xerox 914, Swatch, Nespresso, Red Hat) Expansive: Launching a new technology, product, or service
Improve market: Improve or disrupt an existing market (e.g. Nespresso, Xerox 914 in the 1960s, iPod/iTunes)
(e.g. Dell, EFG Bank, Nintendo Wii, IKEA, Bharti Airtel, Pro-active/explorative: Preparing for the future
Skype, Zipcar, Ryanair, Amazon.com retail, better place) (e.g. car2go by Daimler, Amazon Web Services)
Create market: Create an entirely new type of business 245
(Diners Club, Google) challenges
› Developing an appetite for new models
challenges
› Aligning old and new models
› Finding the right model
› Managing vested interests
› Testing the model before a full-scale launch
› Focusing on the long term
› Inducing the market to adopt the new model

› Continuously adapting the model in response to market feedback
› Managing uncertainty

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