The industry has been facing a steady decline of revenues for existing and new target segments. Measures taken were focused mostly on the renovation and innovation of the core product portfolio. Disruptive business models only played a minor role and were regarded more as testing grounds, not as a power house for business growth and differentiation. On top of this, the increasing competition from nimble and more relevant niche players also started to add pressure to the incumbents of the industry. Our client acknowledged the risk of missing out on significant growth opportunities without a structured and committed approach for business model innovation.
Bloom Partners was asked to develop and implement the strategy of an in-house process to identify, design, test and scale business model innovation. The result was a close integration of it into business strategy and alignment with existing internal global and local innovation and investment vehicles.
The approach chosen was aimed at ensuring early and strong senior management support, internal commitment and excitement. We also aimed to implement a realistic, fact-driven point of view on growth opportunities and requirements. Ultimately, the project was also designed to create openness towards a test & learn culture and an acknowledgement of necessary investments.
Our team conducted a thorough analysis of management expectations and existing innovation and investment capabilities to develop an aligned strategy and objectives for business model innovation: what it means, why we do it and what we want to achieve (realistic yet ambitious).
2. Approach Development:
Secondly, we developed a pragmatic approach to define, ideate, evaluate, test and scale business model innovation inside the company. The approach was linked to strategic growth areas, as well as to M&A activities, and integrated existing innovation vehicles and capabilities. Finally, it also defined new vehicles such as agile testing squads, cooperation with early-stage startup teams, incubators, and accelerator partnerships. The team designed specific decision milestones throughout the process, with the final decision determining whether to integrate successful ideas back into the business or allow them to spin off.
To ensure seamless and fast implementation, the team developed actionable templates and trainings while we put first cases into testing throughout the process. First internal and external partnerships were forged; objectives and further pilots were included into the strategic planning process.