We’re halfway in PDMA’s Annual Global Conference 2011 in Phoenix, so it’s time to share some impressions! First of all, it seems like most of the people are very happy to have left the blizzards in the North for sunny Phoenix for a couple of days :)
Yesterday, we had a great day in the Business Model Innovation Lab. Great organization by Chris Dolan and Matt Benson. There were many insights, but I certainly liked Josh Suskewicz‘s summary of the 3 main traps for business model innovation. Why is Business Model Innovation so hard?
Trap 1: Failure to allocate resources. Many organizations see that business model innovation is important for them, but fail at allocating substantial resources to really work on this for a longer period. In this perspective, we agreed that it’s better to allocate 2 people full-time instead of 10 people for 20% of their time. Less people, more dedicated.
Trap 2: Business Model Cramming. When the first trap is overcome, many fall into the next one: trying to squeeze everything into new business models, using the the same metrics and logic than the current business. Kodak actually developed the first digital imaging technology, already in 1975. When they launched their first digital camera, they crammed everything in there because it had to match their current business model of high quality camera. This resulted in a 30,000$ device launched in 1990. No surprise they got nowhere with this. New business model projects have to follow their own business logic and metrics.
Trap 3: Impatience for growth. If you are impatient for rapid growth, you will not take the time to really develop and learn how a new business model and new markets will work for you. The advice: You have to be patient for growth, impatient for profit.
Board of Innovation ended the lab with an interactive business model session in which innovation directors from Hallmark, Microsoft, Coca-Cola and many more teamed up to come up with new revenue models for a start-up, and pitch them to each other. Great teams and great ideas! I really enjoyed it.
A couple of take-ways from today: I liked Ravi Arora’s talk about innovation at Tata. They have a “Dare to Try”-category within Tata to reward ambitious innovation projects that failed. Brilliant! Another of Ravi’s advices: If you are hit by the WORK (Weekly Overload Recreational Killer) virus, immediately go to the nearest BAR (Biological Antidote Remedy). In the section “buzzword of the conference,” the job-to-be-done seems to winning at this moment for me.
Looking forward to the second half of the conference! ps: follow everything on twitter (#PIM11)