Expanding Business Models
Key resources enable business model expansion
“Instead of writing long business plans like we used to and Blah Blah Blah for months – we get slapped by reality and our colleagues in minutes and hours. This is totally new to us!”, Division GM of Information Systems, Eltel Technologistics… Eltel Technologistics specializes in customizing technological and logistical solutions to the defense market and to the institutional market. Management decided it was the right time to innovate their business model into completely new segments and industries. They faced the challenge of migrating the mindset and value thinking of managers to building new growth engines.
Creating a shared language
The BMI Sprintshop™ put together needed to address the requirement to create common language first between the managers. An innovation group of 40 managers was formed from 9 different business units. During various exercises and business model scenarios they designed value propositions using the Business Model Canvas and other visual tools and developed common understanding of their core key resources and customer segment possibilities. At the end of the 1st day they all used the canvas language as part of the buzz group discussions naturally.
Creating new business model options
On the second day the managers experienced the sprint aced prototype techniques of creating new value propositions, for new customer segments, with different trigger mechanisms in place. They were able to discover new paths, unseen before, and understand the meaning of not wasting time over long business plans for months!
Through storytelling and an investment committee of chosen managers, 6 business model prototypes were chosen to continue to the validation stage. “We realized that spending too much time in the office to refine our ideas is a waste of time”, said one of the project managers. “The next step is to discover our new potential customers and validate our design with them – unlike the way we used to do things around here…”
The fired up team decided to split into smaller validation task forces with modelZ architects and set sail to the field.