Thinking about BM in existing companies is slightly different than in a start-up. The best way to look at it is by drawing a continuum between improving existing businesses that a companies has and inventing new businesses that companies plans to build. On the left hand side you have one or several existing businesses models. The company knows them well and the entire organization is trimmed to execute and incrementally improve them. Here the company operates in a known environment with existing customers and a good understanding of the market. In such a known environment it is possible to make relatively accurate forecasts about sales and predictions about growth. Hence the left hand side is all about executing and improving known BM or improving them incrementally. On the right hand side you have one or several new BM that the company is trying to develop. The models are far from proven and the organization is still experimenting with them. Contrary to the improve-end in the continuum, inventing is usually done in an unknown environment. Predictions such as sales forecast or growth numbers are practically impossible to make at the early stages. The company is still developing a good market understanding. Hence the right hand side is all about the search for Business Models that work. The rules of the game are almost totally different on the opposite ends of the continuum. For existing business models and their improvement you make business plans with performance projections. You evaluate people on how they meet those projections. Failure is not an option. When it comes to new BM detailed plans are worthless. Projections don’t make sense for yet unproven Business Models. What you really want to do is perform many small experiments to test the hypothesis of your unproven BM. You learn from these continuous small bets. Which will allow you to improve, adapt or pivot your BM until you make sure it will really work. Existing and new business models require completely different thinking, different rules and different organizational structures to succeed. Are you able to play both games in parallel? Source: Strategyser.com

1. Business Model Innovation
The Ambidextrous Organisation
You engage in You engage in
enough exploitation enough exploration
to ensure current to ensure future
viability”.
viability.
© Lab MindZero - source: strategyser.com

2. Introduction
Existing companies implement
known business models.
Focusing on improving existing BM is not enough.
To assure their survival and growth, companies
need to invent new business models.
This challenge requires entirely new
organizational structures and skills.
© Lab MindZero - source: strategyser.com

3. THE CHALLENGE
The ambidextrous organisation
Companies will need an organisation (strategy and
structure) that can do two things at the same time:
Exploit, by improving existing
business models, and
 Explore, by inventing (new and
disruptive) business models.
© Lab MindZero - source: strategyser.com

4. Thinking about Business Models
in existing companies is slightly
different than in a start-up.
The best way to look at it is by drawing a continuum between:
 Improving existing businesses
that a companies has, and
 Inventing new businesses that
the company plans to build.
© Lab MindZero - source: strategyser.com

5. On the left hand side you have one or several
existing businesses models,
to ensure the organization’s current viability.
The company knows them
well and the entire
organization is trimmed to
execute and incrementally
improve them.
Here the company operates in a known environment with
existing customers and a good understanding of the market.
© Lab MindZero - source: strategyser.com

6. The left hand side is all about executing and
improving known Business Models incrementally.
In such a known environment it is possible to
make relatively accurate forecasts about sales
and predictions about growth.
© Lab MindZero - source: strategyser.com

7. On the right hand side you have
one or several new BM that the
company is trying to develop.
The models are far from
proven and the
organization is still
experimenting with them.
Contrary to the improve-end in the continuum,
inventing is usually done in an unknown environment.
© Lab MindZero - source: strategyser.com

8. The company is still developing a
good market understanding.
Predictions such as sales forecasts or growth
numbers are practically impossible to make at
the early stages.
Hence the right hand side is all
about the search for business
models that work.
© Lab MindZero - source: strategyser.com

9. The rules of the game are almost totally different
on the opposite ends of the continuum.
© Lab MindZero - source: strategyser.com

10. For existing business models
and their improvement you
make business plans with
performance projections.
You evaluate people on how
they meet those projections.
Failure is not an option.
© Lab MindZero - source: strategyser.com

11. When it comes to new BM detailed
plans are worthless.
Projections don’t make sense for yet
unproven Business Models.
What you really want to do is
perform many small experiments
to test the hypothesis of your
unproven BM.
© Lab MindZero - source: strategyser.com

12. You learn from these
continuous small bets.
They will allow you to
improve, adapt or pivot
your Business Model
until you make sure
it will really works.
© Lab MindZero - source: strategyser.com

13. Conclusion
Existing and new business models require completely different
 thinking,
 rules and
 organizational structures to succeed.
Are you able to play
both games in parallel?
© Lab MindZero - source: strategyser.com

14. THANK YOU!
LAB MINDZERO
http://mind-0.blogspot.pt/
© Lab MindZero , 2013