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Nespresso was a breakout hit for Nestle and for a long time its biggest profit contributor. Yet, the innovative business model and value proposition was launched over 30 years ago. Since then, the largest food & beverage company in the world seems unable to produce a similar home run.

Here’s why.


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We just finished an innovation metrics project with a consortium of three multinational companies and a mid-sized enterprise company. In this post I wanted to share an insight into the four key performance indicators (KPIs) we’ve started to put forward to track innovation projects.


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Start With The Most Critical Hypotheses

To validate business ideas you need to perform many small experiments. At the centre of any one of these experiments should be a deep understanding of the most critical hypotheses and why you are testing them.


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Co-authored by Benson Garner.

Entrepreneurs and intrapreneurs often start building early versions of their products and services way too soon. They don’t realize that the search phase of building a new product or business is optimized for learning.

The goal early on is to create the most learning as quickly and efficiently as possible.

In this post we explain how to correctly build “Minimum Viable Products” (MVPs) so that you can maximize learning.

The “Build-Measure-Learn” feedback loop is at the heart of the Lean Startup process. In the “Build” stage you create early stage prototypes and “Minimum Viable Products” (MVPs)…


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Thinkers50, the Oscars of management thinking, asked Yves and I to write a letter to CEOs who are faced with the challenge of creating new and transformative growth inside their companies.

This is our message to them.

Dear CEO,

A recent McKinsey study shows that 80% of your CEO peers think that their current business model is at risk. The research also shows that a mere 6% of your executives are satisfied with the innovation process in your organization.

You have been excellent at executing and improving your proven and successful business models. But as the research above shows, you…


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Transformative innovation explores new horizons and potentially disruptive business models, and requires an entrepreneur at its helm.

Every large company must face the reality of continuous innovation and disruption, or risk becoming obsolete in the 21st century. The organizational structures that characterize established companies today are unlikely to produce that new growth.

This doesn’t discredit the success corporations have generated from finding a successful business model and improving it over time. They are where they are because they successfully scaled and continuously improved a proven business model.

However, to achieve substantial and continued growth in the 21st century, companies will…

Alex Osterwalder

Co-founder of @Strategyzer. Best Selling Author: Business Model Generation & Value Proposition Design.

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