Business Model Champions: Have a Core Insight That Helps You Quickly Move on to the Next Opportunity
Creating successful new business models is a lot like chess: You have to plan several moves in advance. In this article, you will learn how a core insight can drive continuing business model innovation in the way that a chess strategy helps crown a champion.
Quite a few people will tell you that it is all but impossible to move a company from focusing on one technology to another. How much harder must it be to do so when you also have to shift business models at the same time?
Start Your Innovations with the Business Model Tests That Have the Highest Potential and Least Risk
Business model innovation is most likely to succeed with small, low-cost, low-risk tests precede choosing a new direction.
Starting with tests of business model innovation is always a better idea than simply implementing a new idea. Specify that each test must reasonably provide reliable information about:
(1) how much ultimate consumption and intermediate demand changed as a result of the test
(2) whether these changes in consumption and demand are likely to be permanent to the same degree
(3) operational problems that the test created along with suggested solutions
(4) effects on costs due to the test