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

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Chapter 8

Leading and Organizing a Business Model Innovation Factory

The first step in creating a business model innovation factory is an explicit leadership decision to explore and test new business models. It may seem basic and obvious, but without establishing a clear and discreet business model innovation objective at the very top of the organization, it won't happen. Business model innovation must be led from the top. It won't happen bottom up. It won't happen through well-intentioned efforts by midlevel managers with a passion for innovation. It won't happen by creating a culture of innovation throughout the organization focused on strengthening the current business model. Business model innovation requires the capacity to act outside of the interests of the current business model. It will only happen with the sponsorship and support of the CEO and requires a dedicated and focused effort that is protected from those in the current business model that want to block or waylay any new business model that is distracting or disruptive.

Leading and organizing a business model innovation factory is different than creating an innovation platform or lab to support the current business model. Establishing innovation as a strategic management imperative and creating an innovation department accountable to line management isn't good enough if you want to design, prototype, and test new business models. It may be good enough to strengthen your current business model. Creating an innovation ...

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