Professor Charles Baden-Fuller talks about the difference between value creation and value capture, robustness, sustainable competitive advantage today and tomorrow, and scalability.
In his recent article in Long Range Planning, Business Models as Models, Charles explores the question "Are Business Models useful?" where he points out that they act as various forms of model: "to provide means to describe and classify businesses; to operate as sites for scientific investigation; and to act as recipes for creative managers".
Randy Komisar, partner at Kleiner Perkins Caufield and Byers, and co-author of Getting to Plan B (see review/summary here), discusses the main ideas from his book.
"Where are there opportunities to deliver new value propositions, where are there important unmet jobs that this company has the potential to make a successful product or service to address."
"Think about where these opportunities are and then allow the organization the flexibility to start devising ways at which it could deliver on that value proposition, that may not be the traditional way it does business"
Bob Iger, of Walt Disney, in an interesting interview with Fortune's Richard Siklos.
"When we think about monetization we look at advertising, micropayments, paid-for-content and subscription"
"We believe that anything that serves consumers better is a good thing so consumers who have subscribed to multi-channel services, being able to watch those programs and those channels online, we think is a good thing. We do believe though that it is something that should be charged for."
"You have to have one hand in the future and one hand in the present, if you have two in one place then you fail. If you have two in the future then you are not managing your business day to day and that's a big problem operationally, and if you are just managing today, you will miss out opportunities or you will completely ignore significant threats and not prepare yourself for that, so this notion of protecting the present is something that I talk about a lot at the company"
"The most important thing is what is the consumer doing and where the consumer is going"
"The record industry was propped up by a business model selling a 15 song CD for $15, that wasn't sustainable because the price to value relationship was not there, and the other thing that was really interesting was that consumers knew that they could access music in much more convenient ways online and they ended up getting angry that the retailers or the record industry wasn't providing that experience"
An interesting interview with Scott Anthony, president of Innosight, on disruptive innovation.
"Disruptive innovation is a particular type of innovation that occurs when an innovator brings to a market an innovation that is simple, convenient, accessible, and affordable; changing the game"
"Disruptive innovation will result in major changes but they don't often rely on technical innovation, in fact many times the technology is quite trivial, it's the business model, the way a company organizes and acts that drives disruption"
Questions to identify opportunities for disruptive innovation:
"Look for markets where there is some kind of constrains that inhibits consumptions, where is there something that makes it difficult for people to solve problems in their life. Sometimes they don't have skills, money, access to the solution and sometimes it just takes too long."
"Try to identify where people have important unsatisfied jobs to be done, where there is a problem that the customer can’t adequately solve today. If you can find that frustrated customer and ease their pain, you often times have the ticket to disruptive innovation."
"After you have looked for constraints consumptions and you have targeted that job to be done, think about how you can play the innovation game differently. Remember is not about doing it better, it’s about making it simpler, cheaper, more accessible, and more affordable, that's what disruption is all about"
"Think about the markets that you are going to analyze, looking not necessarily at the most demanding customer today, but thinking about people who are relatively undemanding, or people who are not consuming anything at all"
"Focus groups can be a simple way to begin a conversation with customers. Customer observation can be really powerful, because sometimes the customer simple can't tell you what you want. Sometimes you got to give customers something, a very early prototype and let them co-develop the product or service with you. Sometimes you got to do more detailed quantitative research to really pinpoint what are the points of frustration in the market and where are opportunities to do things differently"
"Take a simple first step. Invest a little, learn a lot. Don't spend huge money upfront because the only thing you can be sure of is that your first strategy is wrong, so if you invest too much too soon, you are looking into a path that is fatally flawed"
An interview with Steve Rubel, SVP, Director of Insights for Edelman Digital and blogger at Micropersuasion.com published at blogg.svd.se/utvecklingsblogg. ”Destination-web is dying, centralized things are dying and they’re trying to be distributed.”
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