<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: Obstacles to Business Model Innovation</title>
	<atom:link href="http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/feed" rel="self" type="application/rss+xml" />
	<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html</link>
	<description>Just another WordPress weblog</description>
	<lastBuildDate>Sat, 11 Feb 2012 23:42:23 +0000</lastBuildDate>
	<generator>http://wordpress.org/?v=2.9.2</generator>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
		<item>
		<title>By: Alex Osterwalder</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1134</link>
		<dc:creator>Alex Osterwalder</dc:creator>
		<pubDate>Fri, 05 Jun 2009 13:41:17 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1134</guid>
		<description>Francisco, I couldn&#039;t agree more. The goal is not to &quot;blame&quot; the core business model. The challenge for companies is to maintain a business model portfolio carrying the seeds for tomorrow&#039;s successful business model...</description>
		<content:encoded><![CDATA[<p>Francisco, I couldn&#39;t agree more. The goal is not to &quot;blame&quot; the core business model. The challenge for companies is to maintain a business model portfolio carrying the seeds for tomorrow&#39;s successful business model&#8230;</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Francisco</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1133</link>
		<dc:creator>Francisco</dc:creator>
		<pubDate>Wed, 03 Jun 2009 15:06:47 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1133</guid>
		<description>When I read the comments I have the feeling that we might be missing an important point. I wonder if we should &quot;blame&quot; core business for the problems with innovation. A company&#039;s business model is its most holy asset. It is an engine finely tuned to deliver value. What I mean is that once a company has found its right business model, it performs a concious choice of locking the space of innovation by focusing on giving areas, under a given dynamics. A core business model is optimized for operational efficiency, and this shapes the innovation practices, the profile of the people required, etc. The people that run the core business innovate &quot;within&quot; the business model.&lt;br /&gt;On the other hand, it is evident that companies must develop the ability to explore beyond their business model, having people able to continuously check the blind spots generated by the focus of the core business.&lt;br /&gt;At the end, what I am trying to say is that instead of having a dialectic discussion on how different the cultures are, we should be focusing efforts on understanding how we can merge them without clashing. The real challenge is to &quot;emulsify&quot; (sorry for the chemical analogy!) these very different cultures.</description>
		<content:encoded><![CDATA[<p>When I read the comments I have the feeling that we might be missing an important point. I wonder if we should &quot;blame&quot; core business for the problems with innovation. A company&#39;s business model is its most holy asset. It is an engine finely tuned to deliver value. What I mean is that once a company has found its right business model, it performs a concious choice of locking the space of innovation by focusing on giving areas, under a given dynamics. A core business model is optimized for operational efficiency, and this shapes the innovation practices, the profile of the people required, etc. The people that run the core business innovate &quot;within&quot; the business model.<br />On the other hand, it is evident that companies must develop the ability to explore beyond their business model, having people able to continuously check the blind spots generated by the focus of the core business.<br />At the end, what I am trying to say is that instead of having a dialectic discussion on how different the cultures are, we should be focusing efforts on understanding how we can merge them without clashing. The real challenge is to &quot;emulsify&quot; (sorry for the chemical analogy!) these very different cultures.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Wegas</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1132</link>
		<dc:creator>Wegas</dc:creator>
		<pubDate>Mon, 04 May 2009 08:37:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1132</guid>
		<description>Just to keep the discussion moving:&lt;br /&gt;http://blogs.harvardbusiness.org/haque/2009/03/ideals.html</description>
		<content:encoded><![CDATA[<p>Just to keep the discussion moving:<br /><a href="http://blogs.harvardbusiness.org/haque/2009/03/ideals.html" rel="nofollow">http://blogs.harvardbusiness.org/haque/2009/03/ideals.html</a></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Alex Osterwalder</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1131</link>
		<dc:creator>Alex Osterwalder</dc:creator>
		<pubDate>Sat, 25 Apr 2009 09:46:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1131</guid>
		<description>CCz I agree with you about the lack of women in companies, but I am not sure if I would buy your argument. &lt;br /&gt;&lt;br /&gt;One thing I do think women could bring in is a different type of leadership style. One that is more participatory and less dominant...</description>
		<content:encoded><![CDATA[<p>CCz I agree with you about the lack of women in companies, but I am not sure if I would buy your argument. </p>
<p>One thing I do think women could bring in is a different type of leadership style. One that is more participatory and less dominant&#8230;</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: CCz</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1130</link>
		<dc:creator>CCz</dc:creator>
		<pubDate>Fri, 24 Apr 2009 16:47:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1130</guid>
		<description>Alex,&lt;br /&gt;&lt;br /&gt;I believe that a big obstacle for change and transformation within organizations is ... gender!!!&lt;br /&gt;.&lt;br /&gt;Serious!&lt;br /&gt;.&lt;br /&gt;There are to many men managing companies! Men are very good with concentration, with concentrated or focused attention. Because of that, most of managers can only deal with one topic at any moment.&lt;br /&gt;.&lt;br /&gt;But organizations need &quot;jongleurs&quot;, people able to deal with the current company (the urgencies), and, at the same time, deal with the desired future for the organization, deal with the managing of the transition from today to the desired future, and still deal with the feedback during the voyage to the future.&lt;br /&gt;.&lt;br /&gt;Normally, the presents occupies the whole prime time of attention, and is very hard to put men dealing with 4 comapnies at the same time (today, desired future, transition and feedback)&lt;br /&gt;.&lt;br /&gt;Women are more able to deal with dispersed attention.&lt;br /&gt;.</description>
		<content:encoded><![CDATA[<p>Alex,</p>
<p>I believe that a big obstacle for change and transformation within organizations is &#8230; gender!!!<br />.<br />Serious!<br />.<br />There are to many men managing companies! Men are very good with concentration, with concentrated or focused attention. Because of that, most of managers can only deal with one topic at any moment.<br />.<br />But organizations need &#8220;jongleurs&#8221;, people able to deal with the current company (the urgencies), and, at the same time, deal with the desired future for the organization, deal with the managing of the transition from today to the desired future, and still deal with the feedback during the voyage to the future.<br />.<br />Normally, the presents occupies the whole prime time of attention, and is very hard to put men dealing with 4 comapnies at the same time (today, desired future, transition and feedback)<br />.<br />Women are more able to deal with dispersed attention.<br />.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mary</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1129</link>
		<dc:creator>Mary</dc:creator>
		<pubDate>Sat, 11 Apr 2009 19:01:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1129</guid>
		<description>All very interesting! I&#039;m in the middle of writing a marketing plan for a pharmaceutical company. Who ever said not knowing your customer I think was spot on and I would add to it the inability to or simply ignoring customer education.&lt;br/&gt;&lt;br/&gt;P.S. I started a blog recently and would love some feedback! &lt;br/&gt;&lt;br/&gt;http://cultureshockbec.blogspot.com/</description>
		<content:encoded><![CDATA[<p>All very interesting! I&#8217;m in the middle of writing a marketing plan for a pharmaceutical company. Who ever said not knowing your customer I think was spot on and I would add to it the inability to or simply ignoring customer education.</p>
<p>P.S. I started a blog recently and would love some feedback! </p>
<p><a href="http://cultureshockbec.blogspot.com/" rel="nofollow">http://cultureshockbec.blogspot.com/</a></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Craig Brown</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1128</link>
		<dc:creator>Craig Brown</dc:creator>
		<pubDate>Tue, 07 Apr 2009 11:37:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1128</guid>
		<description>Senior management may be risk averse.  This reects the existing org culture and the values of the very top leadership.&lt;br/&gt;&lt;br/&gt;This (and observation) lead me to the conclusion that a lack of talent in some senior managementteams is a serious blocker of innovation.</description>
		<content:encoded><![CDATA[<p>Senior management may be risk averse.  This reects the existing org culture and the values of the very top leadership.</p>
<p>This (and observation) lead me to the conclusion that a lack of talent in some senior managementteams is a serious blocker of innovation.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Deborah</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1127</link>
		<dc:creator>Deborah</dc:creator>
		<pubDate>Mon, 06 Apr 2009 21:11:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1127</guid>
		<description>My experience is 3-fold - as an innovator, as a partner in a venture capital firm focused on early stage companies, and as a consultant working with mid-large cap companies:&lt;br/&gt;&lt;br/&gt;1. Innovator - the main obstacle was a combination of risk-aversion and plain old lack of understanding - as if we were talking another language - the company, with a strong R&amp;D subsidiary I was in, was used to innovation around products and services (basically technology-based innovation) - the concept of biz model innovation was just foreign - it was as if I was speaking japanese - it was the unknown - so my job was to explain over and over again, use metaphors, examples, etc. to help then 1st understand what biz model innovation was (not just a different way to generate revenue) and then to buy into applying it to this new innovation (which was a technology-based service);&lt;br/&gt;&lt;br/&gt;2. Venture Capitalist: we see few biz model innovations again because most of the entrepreneurs we see are defining innovation around a product/service...some of this is because of history of the region and indigenous industries such as manufacturing (heavy) and biomed/biopharm...they are used to making things and think of those as the &#039;innovation.&#039; -- So our role as venture capitalists is to help them think of new biz models alongside the new &#039;thing&#039; - how can they bring this new &#039;thing&#039; to market in a new way (e.g., biz model);&lt;br/&gt;&lt;br/&gt;3. Consultant to mid-large cap companies: The main issue I see here is fear which is sometimes the same as risk aversion...there is the perception in executive mgmt that while you don&#039;t want a product or service to bomb, the &#039;risk&#039; to one&#039;s reputation isn&#039;t as bad as messing up the biz model - the comments I get are along the lines of, if we mess up a product or service, depending on scale and scope, we don&#039;t totally risk the brand - we can recover with another product/service, an enhancement, etc., but if we mess up the biz model, we can&#039;t recover - there is no going back, it&#039;s permanent, expectations have been set or ruined, etc. etc.  Trying to convince them to &#039;pilot&#039; a new biz model with a certain segment, market etc., is difficult because they perceive biz model innovation as all or nothing vs. offering a product/service to a particular market -they don&#039;t see it in the same light - yet.&lt;br/&gt;&lt;br/&gt;By the way, IBM has a very very interesting study they published recently called &quot;The Enterprise of the Future&quot; - it&#039;s part of their Global CEO Study series and it discussed biz model innovation - defines it a bit more specifically - around pg 47 of the document - which is found at: http://www-935.ibm.com/services/us/gbs/bus/html/ceostudy2008.html?&amp;ca=smbGlobalCEOStudy&amp;re=SMBMMFuture</description>
		<content:encoded><![CDATA[<p>My experience is 3-fold &#8211; as an innovator, as a partner in a venture capital firm focused on early stage companies, and as a consultant working with mid-large cap companies:</p>
<p>1. Innovator &#8211; the main obstacle was a combination of risk-aversion and plain old lack of understanding &#8211; as if we were talking another language &#8211; the company, with a strong R&amp;D subsidiary I was in, was used to innovation around products and services (basically technology-based innovation) &#8211; the concept of biz model innovation was just foreign &#8211; it was as if I was speaking japanese &#8211; it was the unknown &#8211; so my job was to explain over and over again, use metaphors, examples, etc. to help then 1st understand what biz model innovation was (not just a different way to generate revenue) and then to buy into applying it to this new innovation (which was a technology-based service);</p>
<p>2. Venture Capitalist: we see few biz model innovations again because most of the entrepreneurs we see are defining innovation around a product/service&#8230;some of this is because of history of the region and indigenous industries such as manufacturing (heavy) and biomed/biopharm&#8230;they are used to making things and think of those as the &#39;innovation.&#39; &#8212; So our role as venture capitalists is to help them think of new biz models alongside the new &#39;thing&#39; &#8211; how can they bring this new &#39;thing&#39; to market in a new way (e.g., biz model);</p>
<p>3. Consultant to mid-large cap companies: The main issue I see here is fear which is sometimes the same as risk aversion&#8230;there is the perception in executive mgmt that while you don&#39;t want a product or service to bomb, the &#39;risk&#39; to one&#39;s reputation isn&#39;t as bad as messing up the biz model &#8211; the comments I get are along the lines of, if we mess up a product or service, depending on scale and scope, we don&#39;t totally risk the brand &#8211; we can recover with another product/service, an enhancement, etc., but if we mess up the biz model, we can&#39;t recover &#8211; there is no going back, it&#39;s permanent, expectations have been set or ruined, etc. etc.  Trying to convince them to &#39;pilot&#39; a new biz model with a certain segment, market etc., is difficult because they perceive biz model innovation as all or nothing vs. offering a product/service to a particular market -they don&#39;t see it in the same light &#8211; yet.</p>
<p>By the way, IBM has a very very interesting study they published recently called &quot;The Enterprise of the Future&quot; &#8211; it&#39;s part of their Global CEO Study series and it discussed biz model innovation &#8211; defines it a bit more specifically &#8211; around pg 47 of the document &#8211; which is found at: <a href="http://www-935.ibm.com/services/us/gbs/bus/html/ceostudy2008.html?&amp;ca=smbGlobalCEOStudy&amp;re=SMBMMFuture" rel="nofollow">http://www-935.ibm.com/services/us/gbs/bus/html/ceostudy2008.html?&amp;ca=smbGlobalCEOStudy&amp;re=SMBMMFuture</a></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Alex Osterwalder</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1126</link>
		<dc:creator>Alex Osterwalder</dc:creator>
		<pubDate>Mon, 06 Apr 2009 19:06:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1126</guid>
		<description>Thank you to all for sharing your experience and ideas.&lt;br/&gt;&lt;br/&gt;@Alan: thank you for this in depth sharing of your experience. Good material. Great analysis. Very helpful to work with!</description>
		<content:encoded><![CDATA[<p>Thank you to all for sharing your experience and ideas.</p>
<p>@Alan: thank you for this in depth sharing of your experience. Good material. Great analysis. Very helpful to work with!</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Alan Smith</title>
		<link>http://www.businessmodelalchemist.com/2009/04/obstacles-to-business-model-innovation.html/comment-page-1#comment-1125</link>
		<dc:creator>Alan Smith</dc:creator>
		<pubDate>Mon, 06 Apr 2009 12:51:00 +0000</pubDate>
		<guid isPermaLink="false">http://localhost:8888/2009/04/obstacles-to-business-model-innovation.html#comment-1125</guid>
		<description>As a young entrepreneur, and a designer, I don&#039;t find innovating business models all that hard. But of course, innovating WORKING models? Ok that&#039;s hard. Having been involved in this process f&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Feedback cycle: &lt;br/&gt;Even once you think you &quot;get it right&quot; in a prototype, the feedback cycle takes a long time. Building a plan to execute the new model, implementing it, and getting a market response take time.&lt;br/&gt;&lt;br/&gt;Solutions:&lt;br/&gt;Run it by an unbiased board of advisors.&lt;br/&gt;Do quick financial &quot;sketches&quot;&lt;br/&gt;Compare your &quot;new&quot; business model to others out there, is it a big change for you but less original within the sector? The market?&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Lack of Contextual Knowledge:&lt;br/&gt;A lot of great ideas are out there already, especially outside your sector and area of expertise. Some problems you&#039;re innovating on from scratch, that sector has been hitting for decades. &lt;br/&gt;&lt;br/&gt;Solutions:&lt;br/&gt;Think about what sector might have innovated in this area, and what can you borrow from them?&lt;br/&gt;Bounce your ideas of people who work in different sectors with different models.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Getting stuck on one block:&lt;br/&gt;Within the 9 building blocks, I&#039;ve noticed people tend to get stuck on one block. A lot of people think of business models as &quot;Revenue&quot; opportunities only, or internal structural changes only. Working on one without switching to the other after a while results in incoherent models with weak relations between the blocks.&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Losing the big picture:&lt;br/&gt;In conversation its easy to forget WHY you&#039;re doing this in the first place and try to tie together bits and pieces from all over and calling that a business model. Its easy to screw that one up.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Arguments:&lt;br/&gt;People like to be right, and I&#039;ve seen that inexperienced business modelers tend to conversationally discuss/argue implementation methods, customers needs, market needs, etc. A decent discussion takes 10 minutes. Using the canvas to explore first only takes a few minutes tops, and leaves you with an artifact to work from.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Iteration Length:&lt;br/&gt;Professionals know how long to iterate within their field. Those not used to business model innovation tend not to spend enough time exploring an iteration, or far too much time exploring one. You end up with too many weak alternatives, or too few.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;When is it done?:&lt;br/&gt;A classic design issue. You can tweak something forever, but having a team recognize a breakthrough, and then not tweak it to death is difficult. I&#039;ve personally come up with great business ideas, and then accidentally tweaked them away from their core value by continuing to play with them too long. I think this just takes experience.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;--&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;Discussion without documentation:&lt;br/&gt;Since documenting business models is hard, its easy to slip into a dicussion without externalizing the ideas to the walls of the room.&lt;br/&gt;&lt;br/&gt;&lt;br/&gt;------&lt;br/&gt;&lt;br/&gt;With all that said, as a younge entrepreneur, most of the problems are with the process of working with a group, rather than hierarchical and organizational difficulties. Creating an effient and effective environment to generate and recognize opportunities quickly is what I hope this blog/book is able to help people do.</description>
		<content:encoded><![CDATA[<p>As a young entrepreneur, and a designer, I don&#8217;t find innovating business models all that hard. But of course, innovating WORKING models? Ok that&#8217;s hard. Having been involved in this process f</p>
<p>&#8211;</p>
<p>Feedback cycle: <br />Even once you think you &#8220;get it right&#8221; in a prototype, the feedback cycle takes a long time. Building a plan to execute the new model, implementing it, and getting a market response take time.</p>
<p>Solutions:<br />Run it by an unbiased board of advisors.<br />Do quick financial &#8220;sketches&#8221;<br />Compare your &#8220;new&#8221; business model to others out there, is it a big change for you but less original within the sector? The market?</p>
<p>&#8211;</p>
<p>Lack of Contextual Knowledge:<br />A lot of great ideas are out there already, especially outside your sector and area of expertise. Some problems you&#8217;re innovating on from scratch, that sector has been hitting for decades. </p>
<p>Solutions:<br />Think about what sector might have innovated in this area, and what can you borrow from them?<br />Bounce your ideas of people who work in different sectors with different models.</p>
<p>&#8211;</p>
<p>Getting stuck on one block:<br />Within the 9 building blocks, I&#8217;ve noticed people tend to get stuck on one block. A lot of people think of business models as &#8220;Revenue&#8221; opportunities only, or internal structural changes only. Working on one without switching to the other after a while results in incoherent models with weak relations between the blocks.</p>
<p>&#8211;</p>
<p>Losing the big picture:<br />In conversation its easy to forget WHY you&#8217;re doing this in the first place and try to tie together bits and pieces from all over and calling that a business model. Its easy to screw that one up.</p>
<p>&#8211;</p>
<p>Arguments:<br />People like to be right, and I&#8217;ve seen that inexperienced business modelers tend to conversationally discuss/argue implementation methods, customers needs, market needs, etc. A decent discussion takes 10 minutes. Using the canvas to explore first only takes a few minutes tops, and leaves you with an artifact to work from.</p>
<p>&#8211;</p>
<p>Iteration Length:<br />Professionals know how long to iterate within their field. Those not used to business model innovation tend not to spend enough time exploring an iteration, or far too much time exploring one. You end up with too many weak alternatives, or too few.</p>
<p>&#8211;</p>
<p>When is it done?:<br />A classic design issue. You can tweak something forever, but having a team recognize a breakthrough, and then not tweak it to death is difficult. I&#8217;ve personally come up with great business ideas, and then accidentally tweaked them away from their core value by continuing to play with them too long. I think this just takes experience.</p>
<p>&#8211;</p>
<p>Discussion without documentation:<br />Since documenting business models is hard, its easy to slip into a dicussion without externalizing the ideas to the walls of the room.</p>
<p>&#8212;&#8212;</p>
<p>With all that said, as a younge entrepreneur, most of the problems are with the process of working with a group, rather than hierarchical and organizational difficulties. Creating an effient and effective environment to generate and recognize opportunities quickly is what I hope this blog/book is able to help people do.</p>
]]></content:encoded>
	</item>
</channel>
</rss>

