Innovation
Beacons for Business Model Innovation
11/30/10
Business Model Innovation is a hot topic in management thinking, even though there seems to be little agreement about what it looks like. By using analytic tools that provide better decision-making insights, executives can vastly improve their innovation success rate—and ensure their business model investments generate bigger returns.
This article discusses two critical diagnostic tools. The Ten Types of Innovation® classifies innovation activities organizations pursue. Research shows that while most companies focus on innovations in their offering—their product performance, product system and services—the biggest opportunities are anchored in innovations that deliver a new business model and customer experience. The second tool, Economic Value Estimation® (EVE) pioneered by pricing strategist Tom Nagle, is a simple framework which breaks down the economic value of an offer into its component parts and compares this value to a next-best competitive alternative.
By taking advantage of the insights these tools offer, corporate leaders can analyze which Business Model Innovation projects offer the most value for customers, allowing them to pick the winners and shut down the losers. Read More...
This article discusses two critical diagnostic tools. The Ten Types of Innovation® classifies innovation activities organizations pursue. Research shows that while most companies focus on innovations in their offering—their product performance, product system and services—the biggest opportunities are anchored in innovations that deliver a new business model and customer experience. The second tool, Economic Value Estimation® (EVE) pioneered by pricing strategist Tom Nagle, is a simple framework which breaks down the economic value of an offer into its component parts and compares this value to a next-best competitive alternative.
By taking advantage of the insights these tools offer, corporate leaders can analyze which Business Model Innovation projects offer the most value for customers, allowing them to pick the winners and shut down the losers. Read More...
Open Innovation: No Longer an Option
10/23/09
To compete effectively, companies will increasingly have to look beyond their internal walls for sources of advantage.
Open innovation—bringing ideas and solutions into your company from your partners, suppliers and customers, or tapping the “wisdom of crowds” through innovation markets – has gained favor as a way of creating value. Why? Because this new approach is delivering measurable results for its practitioners at a fraction of the cost of their old, proprietary methods. For example, a recent study conducted by Forrester Research with a $14B producer of consumer goods found that their use of the open innovation marketplace of InnoCentive produced an average of 74% return on investment with a payback period of three months. But despite the high-profile models heralded in the business press, very few companies understand what open innovation could—or should—look like for them. Read more... (PDF 1MB)
Open innovation—bringing ideas and solutions into your company from your partners, suppliers and customers, or tapping the “wisdom of crowds” through innovation markets – has gained favor as a way of creating value. Why? Because this new approach is delivering measurable results for its practitioners at a fraction of the cost of their old, proprietary methods. For example, a recent study conducted by Forrester Research with a $14B producer of consumer goods found that their use of the open innovation marketplace of InnoCentive produced an average of 74% return on investment with a payback period of three months. But despite the high-profile models heralded in the business press, very few companies understand what open innovation could—or should—look like for them. Read more... (PDF 1MB)