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Source: Strategyzer

In a previous post, we explained how business model patterns can help executives shift from outdated to a more competitive business model. Today we illustrate one of the patterns, the shift from product to service, with Hilti. And we go behind-the-scenes with Dr. Christoph Loos, CEO of Hilti, to understand what it takes to lead such a business transformation.

In the early 2000s, tool manufacturer Hilti shifts from selling high-quality tools to selling tool fleet management services to construction companies, after a key customer requests a holistic tool management system to increase productivity.

It’s a beautiful case illustrating the “from product to service” shift with a happy ending. CEO of Hilti Dr. Christoph Loos explains how this transformation helped his company withstand the test of the 2008 Global Financial Crisis. At a time when the whole construction industry came to an abrupt standstill. …


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Source: Strategyzer

In a previous post, we explained how business model patterns help entrepreneurs and business leaders go beyond the traditional means of competing on product, service, technology or price. Ultimately, create better, more resilient businesses. But no business model can live forever. Today we show how business model patterns can help executives and innovation teams think through how to substantially improve your current business model by shifting it from a less competitive to a more competitive one.

What got you here today, won’t get you there tomorrow. When the time to renovate a business model comes, leaders face a challenging endeavor. They need to continue to operate the expiring business while simultaneously exploring the shift to a new, competitive one. In The Invincible Company, we codify 12 different SHIFT patterns. Each pattern helps you think through how you could substantially improve your existing business model. Leaders and appointed transformation teams can use the Shift Patterns Library as inspiration. Along with rigorous testing to reduce risk and uncertainty, the Shift Patterns can help you shift your existing business to a more competitive iteration. …


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Source: Strategyzer

A lot of startups and established companies are trying to compete on superior technology, products, services and price. They are stuck in a rat race. Yet, the world’s most successful companies compete on superior business models. These business models build on patterns, i.e. repeatable configurations of different business model building blocks to strengthen an organization’s overall business model. This is the secret formula behind their success. Understanding those patterns helps entrepreneurs and business leaders create better, more resilient businesses.

A pattern is an arrangement of various elements to create a certain outcome. Architects, for instance, use a pattern when they associate large windows facing south in a living area to bring in lots of light. In mountainous areas, they might build on a different pattern, with larger walls and smaller windows to better conserve heat in winter. …


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Source: Strategyzer

Over the last weeks the coronavirus disrupted the entire global economy and almost every business on the face of the planet. Yet, Covid-19 is a black swan and a once in a century event. When things get back to normal (yes, it will take quite some time), companies need to prepare for more common types of disruption. In this blogpost, we explain how you can systematically assess the risk of disruption with our Disruption Assessment Tool.

Even before the coronavirus outbreak in December 2019, disruption was a big concern to executives. A 2016 McKinsey study shows that 80% of executives think their business model is at risk. …


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Photo by César Viteri on Unsplash

I read many books and articles on business transformation and innovation as part of my research for The Invincible Company in 2019. Among the 30 books I read last year, not all were about business though. I have also read biographies, scientific and philosophy books. But I came across enough inspiring business books to continue the yearly sharing exercise I started in 2017. Again, it might not have the same sales impact as a recommendation from the Financial Times or Bill Gates but here are my four favourites business books from 2019, in no particular order.

“Read the best books first, or you may not have a chance to read them at all.” ― Henry David…


I had a coffee chat last week with the Chief Information Officer (CIO) of an ASX100 manufacturing company. In a very traditional and process-driven organisation she wants her team to lead cross-functional innovation initiatives and has introduced hack days to initiate a spark. She was concerned about how to keep momentum after a hack day. So she approached me to draw on my experience of helping Global 500 companies create innovation ecosystems.

1. Objective

Wikipedia: a hackathon (also known as a hack day, hack fest or code fest) is a design sprint-like event in which computer programmers and others involved in software development, including graphic designers, interface designers, project managers, and others, often including domain experts, collaborate intensively on software projects.


Nowadays there is no escaping the Agile hype. Large organisations are “becoming Agile” one after the other, fuelled by hopes of higher employee engagement and more efficient product development.

A Service Delivery Executive at a Fortune 500 company in the technology sector told us that the implementation of Agile in his organisation raised high expectations of easier product and service design but in reality fell short of those initial expectations. He was wondering if Agile works for new product development and if not, what could replace it or complement it.

Doing ‘Agile’ for new product development

Let’s start by taking a few steps back to understand where all the hype is coming from. As a software development methodology built on the 2001 Agile manifesto, Agile has been a resounding success. Nowadays no one would deny its efficiency to develop better software. …


A short while ago, I had a coffee chat with the Chief Digital Officer of an ASX100 consumer goods company who is currently leading the digital transformation of a product-based company into the digital world.

She is constantly approached by “silver bullet solution vendors” and expressed her surprise at just how many charlatans there are in the field of business transformation. She resonated with the rigor that Strategyzer and I bring to the innovation practice, and was curious to learn more about how Global 500 companies efficiently feed and manage an innovation funnel, so we got chatting.

We started by discussing how managing an innovation funnel is different from managing a technology project portfolio, where the first key difference is uncertainty. In her digital transformation initiatives, I shared that ideas and projects could be placed on a spectrum from relatively low uncertainty (e.g. digitizing a paper process in existing operations) to high uncertainty (e.g. using available data to build completely new products and services). …


At Strategyzer we often use the Owlet team video from the International Business Model Competition in 2013 to illustrate how to de-risk new ideas, cheaply and quickly. Let’s unpack together the most important principles to follow when testing new business ideas.

When we train business teams on how to execute innovation sprints and show them the Owlet video (a pitch that led the Owlet team to win the International Business Model Competition in 2013) we start by apologizing to the audience. What could a group of innovation professionals like themselves with access to corporate knowledge and a wealth of resources really learn from inexperienced students? We tell them that they will probably not learn much, but we show the video anyway. …


We use the value proposition canvas to help innovation teams design products and services customers actually want. Although one question we get all the time (especially from new users of the value proposition canvas) is: Do you always start with the customer?

The last couple of decades have seen an overwhelming focus on customers. I have yet to advise a company whose vision or strategy doesn’t include an acute customer focus. And this plethora of customer-driven organisations rely more and more on methodologies such as Design Thinking which starts with an empathetic and exploratory approach toward the customer. …

About

Frederic Etiemble

#Innovation #BusinessTransformation advisor. Coauthor of The Invincible Company. Speaker & #coach on @strategyzer tools. Loves cinema, tennis & basketball.

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