Social Bus Model Innovation Arising_Short

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Information about Social Bus Model Innovation Arising_Short

Published on July 15, 2008

Author: AndrewO

Source: slideshare.net

Social Business Model Innovation How to illustrate and improve business models for changing the world [email_address] www.wearearising.org Business Model Design and Innovation Workshop: London, October 7 th 2008 (tbc) With the support of Dr Alex Osterwalder at Arvetica

I think that conflicting understandings of what a business is doing, or how social business works, and limited awareness of the opportunities for systematic ways to improve business models can constrain the success of business. The open-source process tool described here, may help eliminate these barriers to the growth and impact of social businesses and the sector. This presentation introduces a tool designed to Allow entrepreneurs to better describe, improve and get investment in their business Enable advisors to clearly illustrate the options for creating more sustainable businesses Encourage faster learning and innovation within the social enterprise sector through sharing of business model innovation I am looking for: Feedback on what has been developed so far, Advice and collaboration to develop it further, including opportunity to demonstrate this model and tool to relevant people, Expressions of interest in supporting / participating in a ‘social business model innovation’ workshop in early October. Overview

I think that

conflicting understandings of what a business is doing, or how social business works, and

limited awareness of the opportunities for systematic ways to improve business models

can constrain the success of business.

The open-source process tool described here, may help eliminate these barriers to the growth and impact of social businesses and the sector.

This presentation introduces a tool designed to

Allow entrepreneurs to better describe, improve and get investment in their business

Enable advisors to clearly illustrate the options for creating more sustainable businesses

Encourage faster learning and innovation within the social enterprise sector through sharing of business model innovation

I am looking for:

Feedback on what has been developed so far,

Advice and collaboration to develop it further, including opportunity to demonstrate this model and tool to relevant people,

Expressions of interest in supporting / participating in a ‘social business model innovation’ workshop in early October.

Menu Presentation has 25 slides and will take 10 minutes to view. If anything isn’t clear, please call me: +447790681043 There are navigation hyperlinks at the bottom of the slides. I recommended viewing it as a ‘show’ , so the animations work Menu Context and current challenge Business Model Design case, template and process Social Business Innovation case Sustainable Business Model Innovation case Summary and questions Needs Contacts and Credits

Presentation has 25 slides and will take 10 minutes to view.

If anything isn’t clear, please call me: +447790681043

There are navigation hyperlinks at the bottom of the slides.

I recommended viewing it as a ‘show’ , so the animations work

Menu

Context and current challenge

Business Model Design case, template and process

Social Business Innovation case

Sustainable Business Model Innovation case

Summary and questions

Needs

Contacts and Credits

Context Why, Who, How and What If?

Why, Who, How and What If?

Who Andrew: Sustainability and social business background Inspiration: Dr Osterwalder, Natural Step, Interface ( Credits ) Audience: Advisors Entrepreneurs Sustainability consultants Funders Think-tanks

Andrew:

Sustainability and social business background

Inspiration:

Dr Osterwalder, Natural Step, Interface ( Credits )

Audience:

Why Why innovate and learn faster? Pressure to change: technology, environment, globalisation Very few businesses are currently truly ‘sustainable’ Start-ups who don’t want to ‘re-invent the wheel’. Why Business Models ? Succinctly describes logic at the heart of business: Why it exists, what it does, and who for, How it ‘wins’ in its market, Inputs, flows and outputs of operations. Why this tool and process? I’ve seen confusion amongst advisors and entrepreneurs for lack of a common language I’ve not seen any holistic ways to consistently be creative about re-design of business IBM Global CEO survey 2006 identified business model innovation as the new strategic differentiator

Why innovate and learn faster?

Pressure to change: technology, environment, globalisation

Very few businesses are currently truly ‘sustainable’

Start-ups who don’t want to ‘re-invent the wheel’.

Why Business Models ?

Succinctly describes logic at the heart of business:

Why it exists, what it does, and who for,

How it ‘wins’ in its market,

Inputs, flows and outputs of operations.

Why this tool and process?

I’ve seen confusion amongst advisors and entrepreneurs for lack of a common language

I’ve not seen any holistic ways to consistently be creative about re-design of business

IBM Global CEO survey 2006 identified business model innovation as the new strategic differentiator

Can you really effectively share, create, explain, and innovate with text and numbers?

If these are true… Better ‘maps’ and models can be used to enable better thinking in individuals, and groups E.g. Mindmaps, flipcharts, organisational charts, Lego Thinking better = working smarter = better business = bigger social impact Most people have prefer visual communication E.g. Windows (instead of DOS), television, ppt instead of word Making ‘logic’ explicit allows testing, sharing, prototyping, evaluation of options and learning

Better ‘maps’ and models can be used to enable better thinking in individuals, and groups

E.g. Mindmaps, flipcharts, organisational charts, Lego

Thinking better = working smarter = better business = bigger social impact

Most people have prefer visual communication

E.g. Windows (instead of DOS), television, ppt instead of word

Making ‘logic’ explicit allows testing, sharing, prototyping, evaluation of options and learning

… and if creating and building a business is like a being an architect, and builder..

..then, is it a bit like, this… Designing and building a house, but: No standard way to ‘look’ at and comment on designs (e.g. scale model, or CAD drawing), No common definition of key terms and relationships No modular parts that can be exchanged and ‘played’ with (e.g. walls, windows) No catalogues of past designs that have worked and failed, such that we compare them can avoid repeating mistakes No shared vision (visual) and understanding of what is being built! And, like architecture, in business The designs that are available are from the past are not sustainable, nor suitable for the future we are trying to create e.g. almost all ‘sustainable’ buildings now are solar passive and oriented to fit with the landscape, making old designs that didn’t consider these factors irrelevant.

Designing and building a house, but:

No standard way to ‘look’ at and comment on designs (e.g. scale model, or CAD drawing),

No common definition of key terms and relationships

No modular parts that can be exchanged and ‘played’ with (e.g. walls, windows)

No catalogues of past designs that have worked and failed, such that we compare them can avoid repeating mistakes

No shared vision (visual) and understanding of what is being built!

And, like architecture, in business

The designs that are available are from the past are not sustainable, nor suitable for the future we are trying to create

e.g. almost all ‘sustainable’ buildings now are solar passive and oriented to fit with the landscape, making old designs that didn’t consider these factors irrelevant.

Image Light bulb ..then, what if..

Light bulb

..we had a visual, generic, intuitive, modular way of describing business models?

Example – Writing software

What if….. you change the parts, or relationships? MS Word -> Google docs

Similar target market, different features, Totally different business model

Enables Business Design process Frame Frame the challenge: environment, stakeholders, trends Illustrate Agree elements and relationships that describe organisation Inquire Facilitate Analysis, and Dialogue to challenge assumptions Innovate Take inspiration from other businesses, sectors, nature.. Be creative with the parts and the relationships: increase, decrease, eliminate, add, substitute, link Implement Prototype Prioritise, Decide, Share the Vision, Take the first steps Evaluate Test Success against new criteria Share learning within the sector

Frame

Frame the challenge: environment, stakeholders, trends

Illustrate

Agree elements and relationships that describe organisation

Inquire

Facilitate Analysis, and Dialogue to challenge assumptions

Innovate

Take inspiration from other businesses, sectors, nature..

Be creative with the parts and the relationships: increase, decrease, eliminate, add, substitute, link

Implement

Prototype

Prioritise, Decide, Share the Vision, Take the first steps

Evaluate

Test Success against new criteria

Share learning within the sector

Social Innovation Shelters and handouts Training and a hand-up

From Charity to Business

From conventional to sustainable A generic template for social and sustainable business models would need to be more explicit about: Where money comes from Where money goes to Where resources comes from Where waste goes to What other forms of capital (human, manufactured) are required How mission affects structure

A generic template for social and sustainable business models would need to be more explicit about:

Where money comes from

Where money goes to

Where resources comes from

Where waste goes to

What other forms of capital (human, manufactured) are required

How mission affects structure

Sustainable Business Model?

Easier to re-design Visual representation makes it easier to imagine strategy and how to make business model more sustainable What can we reduce or increase ? What can we add or eliminate ? What can we substitute or re-distribute ? What can we reconnect , disconnect or re-organise ?

Visual representation makes it easier to imagine strategy and how to make business model more sustainable

What can we substitute or

re-distribute ?

What can we reconnect , disconnect or

re-organise ?

From To Written, numbers, spoken Different language, different expertise Only for experts Vague (metaphors, analogies) Business Model Constrained, incremental change Confusing array of terms and choices Common visual language, across expertise Precise (building blocks) Sustainable Business model Creativity and innovation for Massive change Catalogue of options for each module Understandable by all, especially entrepreneurs Visual too

What do you think? Can you see the value in this tool and process for social business and innovation ? Can you see how it could develop? Would you like to learn more, see more detailed real-life cases, or participated in a demonstration? Would you like to join the other interested experts, entrepreneurs, funders and advisers innovators in a design innovation workshop? Do you know others who may be interested in this model and the event?

Contact [email_address] www.wearearising.org +44 (0)779 068 1043 Business Model Design and Innovation Workshop: London, October 7 th 2008 (tbc)

Credits Dr. Alex Osterwalder, Arvetica http://business-model-design.blogspot.com Also informed by: Interface sustainability model http://interfacesustainability.com/model.html The Natural Step http://www.naturalstep.org.nz/tns-f-system-conditions.asp Systems Dynamics http:// en.wikipedia.org/wiki/System_dynamics Metabridge, Mindmapping, Visual Facilitation ( www.biggerpicture.dk www.delta7.com ) Blue Ocean Strategies

Dr. Alex Osterwalder, Arvetica

http://business-model-design.blogspot.com

Also informed by:

Interface sustainability model

http://interfacesustainability.com/model.html

The Natural Step

http://www.naturalstep.org.nz/tns-f-system-conditions.asp

Systems Dynamics http:// en.wikipedia.org/wiki/System_dynamics

Metabridge, Mindmapping, Visual Facilitation ( www.biggerpicture.dk www.delta7.com ) Blue Ocean Strategies

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