The Business Model Innovation Factory: How to Stay Relevant When The World is Changing

Praise for The Business Model Innovation Factory "To be competitive and stay competitive in today′s business environment, you have to be fast on your feet. Saul Kaplan knows how to take innovation from napkin sketch to market share, and in this book, he teaches you exactly how to create your own ′innovation factory′ from scratch. But be careful: once you start working with these ideas, it might be hard to stop!" — Daniel H. Pink , author of Drive and A Whole New Mind "Saul Kaplan, the innovator′s innovator, shows you how to transform the sense of what′s possible in your field, whether you′re running a company or leading a community. If you want to win big, you have to change the game. This inspiring and instructive book is a game plan for game–changers." — William C. Taylor , Co–Founding Editor, Fast Company, and author of Practically Radical "Saul gets below the buzzwords of innovation and provides an inspiring and actionable road map to help transform how any organization creates, delivers, and captures value. The Business Model Innovation Factory is a must–read for any leader who wants to deliver innovation in the twenty–first century." — Tony Hsieh , author of Delivering Happiness and CEO, Zappos.com, Inc. "New products and tweaks to your current business model are not enough in today′s environment. You need a way to continuously test new ideas and markets. Creating the ′business model innovation factory′ described in Saul′s book is the next step for any leader who wants to stay ahead of a changing world." — Alex Osterwalder , coauthor of Business Model Generation "Saul Kaplan is a one–man business model innovation factory! Every established leader and budding entrepreneur needs to read this book to find the way to real market–making innovation. Buy it, read it, do it!" — Alan M. Webber , Co–Founding Editor, Fast Company, and author of Rules of Thumb

Acknowledgments xi Introduction xiii I What You Have Always Done Isn′t Working Anymore 1 1 Don′t Get Netflixed: Your Current Business Model Isn′t Going to Last Much Longer 3 Blockbuster Gets Netflixed 5 Even Netflix Is in Danger of Being Netflixed 10 2 Business Models 101: Creating, Delivering, and Capturing Value 17 How Does Your Company Create Value? 19 How Does Your Organization Deliver Value? 21 How Does Your Organization Capture Value? 29 Putting the Entire Business Model Story Together 32 3 Why Organizations Fail at Business Model Innovation 35 10 Reasons Companies Fail at Business Model Innovation 40 II Connect, Inspire, Transform: 15 Business Model Innovation Principles 51 4 Connect: Business Model Innovation Is a Team Sport 55 Principle 1. Catalyze Something Bigger Than Yourself 55 Principle 2. Enable Random Collisions of Unusual Suspects 60 Principle 3. Collaborative Innovation Is the Mantra 64 Principle 4. Build Purposeful Networks 68 Principle 5. Together, We Can Design Our Future 72 5 Inspire: We Do What We Are Passionate About 77 Principle 6. Stories Can Change the World 77 Principle 7. Make Systems–Level Thinking Sexy 81 Principle 8. Transformation Is Itself a Creative Act 84 Principle 9. Passion Rules—Exceed Your Own Expectations 87 Principle 10. Be Inspiration Accelerators 90 6 Transform: Incremental Change Isn′t Working 95 Principle 11. Tweaks Won′t Do It 95 Principle 12. Experiment All the Time 99 Principle 13. Off the Whiteboard and into the Real World 102 Principle 14. It’s a User–centered World—Design for It 108 Principle 15. A Decade Is a Terrible Thing to Waste 110 III Creating a Business Model Innovation Factory 115 7 R&D for New Business Models 117 Innovate through Connected Adjacencies 119 8 Leading and Organizing a Business Model Innovation Factory 131 Staffing a Business Model Innovation Factory 134 Skills and Experience to Staff a Business Model Innovation Factory 137 Wanted: Business Model Designers 142 Resourcing a Business Model Innovation Factory 143 Overcoming the Politics of Business Model Innovation 145 9 Experimenting with Business Models in the Real World 149 Give Me Rhode Island 154 A Better Place 157 Putting the Customer in the Business Model Driver Seat 163 IV Business Models Aren′t Just for Business 165 10 Nonprofits Have Business Models Too 167 11 R&D for New Social Systems 179 Measure Innovation Outputs 181 Education Rant 183 12 What′s Your Personal Business Model? 191 Stay on a Steep Learning Curve 193 Embrace Vulnerability 195 Blessing and a Curse 197 About the Author 201 Index 203

SAUL KAPLAN is the founder and chief catalyst of the Business Innovation Factory (BIF), a real–world laboratory for exploring and testing new business models and social systems. BIF has attracted a global community of over 5,000 innovators and organizes the internationally renowned BIF Collaborative Innovation Summit. Saul shares his innovation musings on Twitter (@skap5) and his blog (It′s Saul Connected), and as regular contributor to the Harvard Business Review , Fortune , and Bloomberg Businessweek .