Business Model Shifts: MC3 slides

Question 1

Video TOMS

Answer 1

the one for one model, people were buying a pair of shoes and TOMS was given shoes to children in need; also, people were buying sunglasses and TOMS wad paying for prescription glasses for children and cataract surgeries; they opened cafes and started backpack and bags lines.

Question 2

The concept of an invincible company:

Answer 2

• a company that constantly reinvents itself before it comes obsolete (no longer used)
• explores the future, while excelling at exploiting the present

Question 3

The Business Portfolio Map: Explanation

Answer 3

the map is used to visualize, analyze and manage the portfolio of existing and new businesses. The portfolio needs to be resilient, protect the organization from disruption and build an invincible company.

Question 4

The Business Portfolio Map: Exploit (Managerial Mindset)

Answer 4

• portfolio of existing businesses
• helps you manage what you have by looking at the return (A axis) and at the Death & Disruption Risk (B)
• scale emergent business models, renovate declining ones or make successful ones more resilient
• actions:
  o bring in outside business models (acquisitions, mergers, partnerships, investments)
  o improve existing business models, shift them from outdated to superior business models
  o remove business models that don’t fit your strategy (divestitures, dismantling)

Question 5

The Business Portfolio Map: Explore (Entrepreneurial Mindset - helps avoid obsolescence)

Answer 5

• when a company comes up with a business model for a start-up and then they scale and grow into a mature company (its model moves to the exploit portfolio)
• portfolio of new opportunities
• bold initiatives
• increase the expected return (C) – design better business models
• reduce innovation risks (D) – rigorous testing
• adopt ideas based on evidence from the field until a value proposition and business model emerge
• actions:
  o ideate and test your own business models and value proposition ideas
  o invest in outside ventures
  o persevere and gather further evidence
  o pivot (adapt) the ideas
  o retire a project if evidence suggests it won’t work
  o after all of this is done, the project can be transferred to the exploit portfolio

Question 6

Exploration - VS - Exploitation

Answer 6

High - UNCERTAINTY - Low

Search and breakthrough - FOCUS - Efficiency and growth

Venture-capital style risk taking: expecting few outsized winners - FINANCIAL PHILOSOPHY - Safe haven with steady returns and dividends

Iterative experimentation, embracing speed, failure, learning, and rapid adaptation - CULTURE & PROCESSES - Linear execution, embracing planning, predictability and minimal failure

Explores who excel in uncertainty, are strong at pattern recognition, and can navigate between big picture and details - PEOPLE SKILLS - Managers who are strong at organising and planning and can design efficient processes to deliver on time and budget

Question 7

Layout of the culture map

Answer 7

• Outcomes (The fruit: what we harvest?)
• Behaviours (Behaviours at the heart of the culture)
• Enablers/Blockers (Levers that lead to positive or negative behaviours inside the company)

Question 8

The 9 considerations to asses an organisation’s innovation readiness:

Answer 8

Leadership support
1. Strategic guidance
2. Resource Allocation
3. Portfolio Management

Organizational design:
4. Legitimacy and power
5. Bridge to the core
6. Rewards and incentives

Innovation practice:
7. Innovation tools
8. Process management
9. Skills development

Question 9

How to achieve innovation:

Answer 9

• Inspiration
• Vision
• Growth
• Idea
• Process
• Development
• Creativity

Question 10

5 ways to boost innovativeness:

Answer 10

1. Postpone your judgement
2. Break your patterns
3. See opportunities
4. Undertake inspiration safaris
5. Discover customer pain points and dreams