26 February 2020 | The only way to create a new business is to stop looking at what your competitors are doing. There are three challenges to innovating business model. (Business Model Navigator.)
Challenge No. 1: Thinking outside of one’s own dominant industry logic. To come up with ideas for an innovative business model, it is essential to overcome the dominant logic residing within an industry or company. New ideas can only be found beyond the confines of current concepts.
Challenge No. 2: Difficulty of thinking in terms of business models rather than of technologies and products. It is not always the technology that brings unprecedented success, but rather its innovative application in the form of an innovative business model.
Challenge No. 3: The lack of systematic tools. (Business model innovation myths.) Innovation is the principal task of any manager. Merely supervising daily business would not warrant the high salaries that managers receive. Inspiring and driving innovation on a business level separates administrators from inspiring leaders. These leaders need an entrepreneurial mindset and the capabilities to innovate.
The Business Model Navigator is an action-oriented methodology that permits any company to break with its dominant industry logic and innovate its business model. It has been shown to work in all manner of organisations, industries and companies. It builds on the central idea that successful business models can be constructed through creative imitation and recombination.
The business models we have analysed comprise the vast majority of all those that have been successfully developed over the past 50 years, plus a number of pioneering ones from the past 150 years. In addition to analyzing successful business models, we also used our experience to examine why a company’s business model failed to work.