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Business model innovation is the new strategic imperative for all leaders

Blockbuster's executives saw Netflix coming. Yet they stuck with their bricks and mortar business model, losing billions in shareholder value. They were "netflixed." Business models don't last as long as they used to. Historically CEO's have managed a single business model over their entire careers. Today, all organizations must be capable of designing, prototyping, and experimenting with new business models. The Business Model Innovation Factory provides leaders with the survival skills to create a pipeline of new business models in the face of disruptive markets and competition.

Avoid being netflixed. Your organization must be a business model innovator to stay competitive in today's turbulent world.

• Author Saul Kaplan is the founder and chief catalyst of the Business Innovation Factory (BIF), a real world laboratory for exploring and testing new business models and social systems. BIF has attracted a global community of over five thousand innovators and organizes the internationally renowned BIF Collaborative Innovation Summit

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Praise for the business model innovation factory

"To be competitive and stay competitive in today's business environment, you have to be fast on your feet. Saul Kaplan knows how to take innovation from napkin sketch to market share, and in this book, he teaches you exactly how to create your own 'innovation factory' from scratch. But be careful: once you start working with these ideas, it might be hard to stop!"
—Daniel H. Pink, author of Drive and A Whole New Mind

"Saul Kaplan, the innovator's innovator, shows you how to transform the sense of what's possible in your field, whether you're running a company or leading a community. If you want to win big, you have to change the game. This inspiring and instructive book is a game plan for game-changers."
—William C. Taylor, Co-Founding Editor, Fast Company,and author of Practically Radical

"Saul gets below the buzzwords of innovation and provides an inspiring and actionable road map to help transform how any organization creates, delivers, and captures value. The Business Model Innovation Factory is a must-read for any leader who wants to deliver innovation in the twenty-first century."
—Tony Hsieh, author of Delivering Happiness and CEO, Zappos.com, Inc.

"New products and tweaks to your current business model are not enough in today's environment. You need a way to continuously test new ideas and markets. Creating the 'business model innovation factory' described in Saul's book is the next step for any leader who wants to stay ahead of a changing world."
—Alex Osterwalder, coauthor of Business Model Generation

"Saul Kaplan is a one-man business model innovation factory! Every established leader and budding entrepreneur needs to read this book to find the way to real market-making innovation. Buy it, read it, do it!"
—Alan M. Webber, Co-Founding Editor, Fast Company, and author of Rules of Thumb

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Acknowledgments xi  
Introduction xiii
 
I What You Have Always Done Isn't Working Anymore 1
 
1 Don't Get Netflixed: Your Current Business Model Isn't Going to Last Much Longer 3
 
Blockbuster Gets Netflixed 5
 
Even Netflix Is in Danger of Being Netflixed 10
 
2 Business Models 101: Creating, Delivering, and Capturing Value 17
 
How Does Your Company Create Value? 19
 
How Does Your Organization Deliver Value? 21
 
How Does Your Organization Capture Value? 29
 
Putting the Entire Business Model Story Together 32
 
3 Why Organizations Fail at Business Model Innovation 35
 
10 Reasons Companies Fail at Business Model Innovation 40
 
II Connect, Inspire, Transform: 15 Business Model Innovation Principles 51
 
4 Connect: Business Model Innovation Is a Team Sport 55
 
Principle 1. Catalyze Something Bigger Than Yourself 55
 
Principle 2. Enable Random Collisions of Unusual Suspects 60
 
Principle 3. Collaborative Innovation Is the Mantra 64
 
Principle 4. Build Purposeful Networks 68
 
Principle 5. Together, We Can Design Our Future 72
 
5 Inspire: We Do What We Are Passionate About 77
 
Principle 6. Stories Can Change the World 77
 
Principle 7. Make Systems-Level Thinking Sexy 81
 
Principle 8. Transformation Is Itself a Creative Act 84
 
Principle 9. Passion Rules—Exceed Your Own Expectations 87
 
Principle 10. Be Inspiration Accelerators 90
 
6 Transform: Incremental Change Isn't Working 95
 
Principle 11. Tweaks Won't Do It 95
 
Principle 12. Experiment All the Time 99
 
Principle 13. Off the Whiteboard and into the Real World 102
 
Principle 14. It’s a User-centered World—Design for It 108
 
Principle 15. A Decade Is a Terrible Thing to Waste 110
 
III Creating a Business Model Innovation Factory 115
 
7 R&D for New Business Models 117
 
Innovate through Connected Adjacencies 119
 
8 Leading and Organizing a Business Model Innovation Factory 131
 
Staffing a Business Model Innovation Factory 134
 
Skills and Experience to Staff a Business Model Innovation Factory 137
 
Wanted: Business Model Designers 142
 
Resourcing a Business Model Innovation Factory 143
 
Overcoming the Politics of Business Model Innovation 145
 
9 Experimenting with Business Models in the Real World 149
 
Give Me Rhode Island 154
 
A Better Place 157
 
Putting the Customer in the Business Model Driver Seat 163
 
IV Business Models Aren't Just for Business 165
 
10 Nonprofits Have Business Models Too 167
 
11 R&D for New Social Systems 179
 
Measure Innovation Outputs 181
 
Education Rant 183
 
12 What's Your Personal Business Model? 191
 
Stay on a Steep Learning Curve 193
 
Embrace Vulnerability 195
 
Blessing and a Curse 197
 
About the Author 201
 
Index 203

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