Business Model Innovation
Some reflections from “How to Build Invincible Companies” talk by Alexander Osterwalder at SDU Odense.
As you would expect from Alexander, PhD in Management and mind behind the Business Model Canvas, he focused on innovation and business management tools. Here is a short summary of Alexander intervention and the interactions he had with the audience.
Everything begun with failures. As Gartner mentioned failure as a growth agent, Alexander reminded us of his own personal failures, asking then to share our own biggest failure to our neighbors in the auditorium. Interestingly, it is not that easy to identify a relevant failure in your own life (not as easy as I would have expected).
Throughout my studies on resources I encountered many times the dualism between exploration and exploitation. Yesterday we discussed the management challenges of these two poles, evaluating business models of existing businesses, looking for evidences of iterative rather than linear growth. We learned how to map them in the market using the Business Model Portfolio. It is a new tool I discovered during the presentation that allow to analyze and position companies based on return levels and sustainable or disruptive risks.
Business Model Innovation is lacking in established businesses. Alexander introduced us to this concept that removes the focus from the product moving it to the business model. The goal is to challenge businesses to rethink their customer base, how they produce or how they finance their operations.
The final minutes of the talk were used to remember what a Business Model is. How it represents a set of hypothesis on the business. It needs so to be validated, testing its hypothesis, reviewing its elements, until the company reaches the dominant market position of high return and low risk.
Thanks to SDU that organizes such interesting events for its students and alumni