Q: What are the best practices for developing new business models?
To answer this subscriber question on business model innovation, we reached out to Innovation Leader partner Saul Kaplan, the founder of Business Innovation Factory. A veteran of both Accenture and Arthur D. Little, Saul has a specific expertise in business model innovation, and is the author of the 2012 book The Business Model Innovation Factory.
We’ve read a ton in Innovation Leader about product innovation, but we’re exploring new business models. Has anyone done any structured thinking about business model design, prototyping, testing, etc.? What does a sample process look like? Are there any “best practices” yet? Thanks.
Business model exploration is the new strategic imperative for most companies, because, quite frankly, business models don’t last as long as they used to. As we’ve all seen, companies are increasingly vulnerable to being disrupted by an upstart new business model – exemplified by companies like Netflix, Uber and Airbnb – that plays by a completely different set of rules.