McKinsey: What’s a Business Model?

Posted by:

You offer no definition, so when you tell us to “innovate”, what exactly is the thing we are to change? To be fair, no-one else provides a useful definition either – not even the most popular Business Model Canvas. All use abstract, inconsistent terminology, provide no causal explanation as to how a business model actually works and delivers performance, and with no quantification we have not the vaguest idea of the scale or growth of the enterprise the “business model” describes, or even if the model is viable ...

Continue Reading →

Business model innovation: BMI

Posted by:

A clear and practical paper from BCG explains nicely what a business model is, what ‘innovating’ it means, and when and how to do it. The only caveat is the superior total shareholder returns it claims comes from BMI innovators vs. traditional innovators – it likely excludes BMI innovators who failed. So by all means check it out, assess whether BMI is appropriate for you, but if not, get back to driving performance in your existing business model.

Continue Reading →

Reinventing your business model? Forget it [most of you!]

Posted by:

Whilst I greatly admire Prof Clay Christensen’s work, and this one in Harvard Business review with colleagues Mark Johnson and Henning Kagermann is good guidance in some cases, it is plain dangerous for most organizations right now.

The basic idea is fine – many innovations like iPod/iTunes will only work if they redefine how money is made, by whom, for what. Large corporations may need to develop new models in order to exploit radical innovations.  But that’s not the ...

Continue Reading →